Estonia, Financial Services, Taxation
International Internet Magazine. Baltic States news & analytics
Friday, 19.04.2024, 09:24
Finance portal: Estonia weighing tax cut for young people, parents of young children
A survey commissioned by the Ministry of Social Affairs and
the Ministry of Finance into the possible effects of such cuts will be
completed in the fall. Based on the results thereof, the state will deliberate
implementing a tax change aimed at supporting the participation of young people
in the labor market.
One of the options to be analyzed in the study is
eliminating the minimum requirement on social tax for parents of children aged
three to eight and for young people aged 18 to 24, Riina Soobik, media
relations adviser of the Ministry of Social Affairs, told the finance portal.
Currently, the employer has the obligation to pay the state
social tax on the employee's monthly remuneration, but no less
than the minimum amount, which in 2019 is 165 euros. A self-employed person is
subject to a minimum quarterly social tax of 495 euros, or a total of
1,980 euros per year.
The Polish government on Tuesday reduced taxes imposed on
the wages of people aged 26 and younger with the aim to curb emigration. Young
people's remuneration is expected to grow significantly as employers no longer
have to pay an 18-% tax on their wages.
The Estonian Ministry of Social Affairs does not deem such a
measure necessary for reducing emigration in Estonia. Dmitri Jegorov,
undersecretary for tax and customs policy at the Ministry of Finance,
too, told raha.geenius.ee that he does not support a tax exemption or
differentiation in such a form.