Talking about taxes, it's worth mentioning that according to Estonian law, there are united taxation rules for all legal entities including nonprofit organizations: no corporate income tax, a social tax that is 33%, and income tax is 20%. VAT rules are the same, too (read more about VAT in Estonia in this article
So, what are the tax preferences for NPOs everyone is talking about? NPOs have several non-taxable expenses
such as accommodation, transport, entertainment, and tax-free limits for some types of expenses. Other tax exemptions are for public benefit organizations (PBO) only. Each NPO can submit an application
for a status of public benefit and charitable organization for getting tax incentives. But it doesn't mean that all nonprofit associations suit these requirements — you should consider it to be a nice possibility, not a necessity.Explore all the requirements to become a part of the list of NPOs benefiting from income tax incentives here.