Lesson 3. Tax-Free Limits for Business Events
Estonian company is allowed to make tax-free expenses for certain types of business receptions and events up to a certain limit.
By the Estonian law, the tax-free limit for business receptions is fixed to 32 euros per month, plus 2% of the salary fund of the company. Amounts above this threshold, which can be different for each company, are taxed with Corporate Income Tax.
In case you don’t use this amount during a month, you can double-spend in the following month. Or spend your yearly allowance in December.
The same rule also applies to similar expenses incurred outside of Estonia, for example during a business lunch meeting.
Sources:
https://www.riigiteataja.ee/en/eli/530012014003/
https://www.riigiteataja.ee/en/eli/527022014003/
Business guide for e-Residents
https://www.emta.ee/
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