e-resident Estonia VAT Audit oÜ / burden of proof for salary

[questioneer]

Hi,

this is about an Estonian OÜ via e-residency, as a non-resident, non-citizen of Estonia, never set foot in there, no employees there, no office. Receiving salary. As part of VAT tax audit the estonian tax office ask where the employment taxes are paid. As a pertual traveller this salary is non-taxable. The question now: Do I need to prove that I was not in Estonia. Or does the tax office need to proof that the income is taxable in Estonia. Can it just be declared in the audit answers that one has not been in Estonia, etc... Or do i need to provide receipts where i was each month... I appreciate input from anyone with personal experience how this is handled.


Thanks a lot!

 

[daniels27]

Have you read this?

https://www.emta.ee/en/private-clie...on-residents/taxation-income-and-tax-treaties
Non-resident's taxable income in Estonia
In Estonia, a non-resident natural person has to pay income tax on the following Estonian sources of income:

• remuneration paid to a non-resident member of a management or controlling body;

and this

https://www.emta.ee/en/private-client/foreigner-non-resident/non-residents/income-employment
If an employer pays wages to a non-resident employee who is employed in the territory of Estonia, the employer has to pay social tax (33 %) and the employer's unemployment insurance contribution (0.8 %) and withhold the employee's unemployment insurance contribution (1.6 %) on the wages under Estonian law.

Are you the director of your company?

 

[questioneer]

yes, thanks, but the employee is not employed in the territory of Estonia. There is only 1 employer, no other person, living as perpetual travel outside of Estonia.

 

[daniels27]

yes, thanks, but the employee is not employed in the territory of Estonia. There is only 1 employer, no other person, living as perpetual travel outside of Estonia.

What is the function of the employee in the company? Director?

 

[questioneer]

Management board member

 

[daniels27]

Yes but look at this:

https://leinonen.eu/est/news/taxation-of-income-of-non-residents-natural-persons-in-estonia/
A non-resident taxpayer shall pay income tax only on the following profit:

• remuneration paid to a non-resident member of a management or controlling body; the place of work is not important (ITA § 29 (2));

 

[Houdini]

Sounds like you need some professional assistance should there come tax complications.