So, after you've hired an employee, there are several monthly actions that your company needs to complete. Declare salary payments on the monthly combined corporate income and payroll tax return (called TSD in Estonia) and pay the taxes due.
The TSD return must be submitted and the calculated taxes paid by the 10th day of the month following the month when the salary payment was made. Since the employee is an Estonian tax resident working in Estonia, all payroll taxes must be paid in Estonia. The tax return is accessible via the e-tax system, where you need to report an employee's ID code, gross salary amount, and whether the individual would like to make use of monthly deductions or not. Tax calculations are automatically made by the system itself.
Again, we highly recommend checking all the requirements and tips
on Work in Estonia website until our HR solution is released.