Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure EE-2020-12/337 – measures in Estonia
|Country||Estonia , applies nationwide|
|Time period||Temporary, 20 March 2020 – 07 May 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound|
|Measure added||07 April 2020 (updated 15 July 2020)|
Solo self-employed (FIE in Estonia) are obliged to pay social tax four times a year as advance payments at the end of every quarter in the amount of at least the minimum social tax obligation (in 2020, €534.6 per quarter). The final tax liability based on their business income is calculated the next year based on the income tax declaration. As several solo self-employed are in difficult position due to the restrictions, the measure is seen as a soothing measure to avoid tax arrears and economic difficulties for the sole proprietors.
To help the solo self-employed persons, the state pays the social tax advanced payment for the first quarter of 2020 to the solo self-employed's prepaid account in the Tax and Customs Board. It is possible to use the payment for the first quarter payment of the social tax. If the payment for the first quarter has already made by the solo self-employed, the payment can be used for the payment of any tax liability now or in the future, or transfer the money to their bank account and use it for other business costs. The size of the payment is €534.6.
On 7 May 2020 the Tax and Customs Board started making the payments to the self-employed. There were altogether 28,000 self-employed in Estonia at the time, of whom 7,426 had an obligation to pay the quarterly payment. A total of 1,747 of them had not paid the quarterly payment yet, thus it was paid by the Tax and Customs Board in the total amount of €800,000. There were 5,769 persons however who had already paid their tax. For them a total of €2.5 million were paid out and they can choose how to use the money.
|Does not apply to workers||
||Does not apply to citizens|
Other social actors (e.g. NGOs)
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
No information to add.
Eurofound (2020), Social tax payments for solo self-employed, measure EE-2020-12/337 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2020-12_337.html
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