None resident Estonian company

[joffreylol]

Estonian OU has two types of salaries for nonresident directors and employee salary should be tax free and as easy as making a transfer reference 'employee salary', no registration necessary with Estonian tax office for this type of employee. Salary for managing company/board member salary seems to be always taxed in Estonia. That's what I concluded when researching if Estonian OU makes sense for me. You can read more about it here:

https://www.xolo.io/zz-en/faq/xolo-...pay-myself-a-salary-operating-outside-estonia
I trust that Xolo people know what they are talking about because they are very popular in Estonia and because they are in the same building as Estonian tax office 😀

 

[Don]

nobrainer said:
"have the exposure that salary could be requalified from Estonian side"

Didn't get this part... so its taxable in Estonia to receive such salary?
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Part of your employment salary could in theory requalified as a director's fee/dividends as it makes sense that the director also gets something for his duties, and the company pays something to its owners. Estonia has implemented GAAR.
Anyway, this is the theory, and enforcement of the laws in practice may vary.

 

[DunningKruger]

spacely said:
sounds like a dream.. Any links on an Estonian law that makes those exemptions to non-residents? If one is paying a salary then it is official and the one who is getting paid should be indicated with the EMTA ( Tax and Customs Board). You make a transfer from the corporate account with a description "salary" and the tax should be paid for that amount on a later stages
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Guys I am running an Estonian OU for last 3 years and trust me;

As a non-resident you do not need to pay any income tax in Estonia and you do not need to pay any social security fess either. But of course you have to report this income in your home country.

Dividents; I avoid getting paid by dividents because its more expensive for me 🙂

For staff; If you will not hire a Estonian tax resident I strongly suggest you to have them as a freelancer and pay them out via normal invoice. So they can pay their own taxes where are they located 😉

Honestly I am using my Estonian company as a PiggyBank because of the %0 corporate tax. So I am collecting money in to my Estonian company and I will cash them out in a later stage. And at the same time I am investing in to crypto with that company money. Also I am investing in to some startups via my Estonian company.

 

[bountymounty]

Don said:
The benefit of Estonian LLP is that it's a separate legal entity, and you don't need to submit annual reports under certain circumstances, and you can easily convert it to LLC.
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What would these circumstances be?

 

[Don]

bountymounty said:
What would these circumstances be?
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General partnerships and limited partnerships do not have to submit annual reports to the registry department, except in cases where a private limited company, public limited company, cooperative or commercial association are the general partner of a general partnership.

Source: Eesti.ee

 

[Cocopops]

Do we have a list of the country that added to an estonian OÜ give 0% tax?

 

[MiltonStone]

Cocopops said:
Do we have a list of the country that added to an estonian OÜ give 0% tax?
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https://www.offshorecorptalk.com/threads/tax-strategy-for-zero-tax-uae-estonia-setup.31644/
Look into the thread.