Mandatory social security contributions

(1) Contributions to a mandatory funded pension withheld pursuant to clauses 11 (1) 1) and 2) and calculated and paid pursuant to subsection 11 (2) of the Funded Pensions Act shall be deducted from the income of a resident natural person during a period of taxation.

(2) Unemployment insurance premiums withheld on the basis of the Unemployment Insurance Act shall be deducted from the income received by a resident natural person during a period of taxation.

(3) A resident natural person has the right to deduct social security taxes and contributions paid in a foreign state during a period of taxation payment of which is mandatory arising from legislation of the foreign state or an international agreement from the income which he or she receives during the period of taxation. A tax or contribution may be deducted from income if the objective of payment was to guarantee pension, health, maternity, unemployment, accident at work or occupational disease insurance to the person.

(4) Taxes and contributions paid on account of income not subject to income tax in Estonia shall not be deducted from income.
[RT I 2006, 28, 208 - entry into force 01.01.2007]

Restriction on deductions from taxable income

(1) The deductions provided for in §§ 25–27 are altogether limited to 1920 euros per taxpayer during a period of taxation, and to not more than 50 per cent of the taxpayer's income taxable in Estonia for the same period of taxation, after the deductions relating to enterprise have been made, taking into account subsections (2) and (3).
[RT I, 08.07.2011, 5 - entry into force 01.01.2012]

(2) If a resident natural person received at least 75 per cent of his or her taxable income in a foreign state during a period of taxation and part of the income received in the foreign state is exempt from income tax in Estonia, the person can make the deductions provided for in the Chapter from his or her income taxable in Estonia in proportion to its share in his or her taxable income for the period of taxation. The restriction specified in the previous sentence does not apply to the deductions provided for in subsection 28¹ (2). Taxable income includes such income of the person before making the deductions, which is subject to taxation in Estonia or the state where the income was received.

(3) The person specified in subsection (2) may choose the application of § 45 to his or her total income for a period of taxation. In such case, the restriction provided for in subsection (2) does not apply.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

§ 28³. [Repealed - RT I, 18.11.2010, 1 - entry into force 01.01.2011]

Chapter 5 TAXATION OF INCOME OF NON-RESIDENTS

Дата добавления: 2015-11-14