Estonia and UK
have entered into a double tax treaty
in May 1994. Through this convention
the two countries avoid the double taxation
thus ensuring advantageous conditions for the development of commercial bonds. Investors in UK and in Estonia have privileged taxation conditions for the income or for capital gains, one of the main purposes of the treaty
being to offset the amount of taxes charged on investors. Our law firm in Estonia
can provide consultancy regarding the double taxation treaty concluded between UK and Estonia
The reduction of taxes according to the tax convention UK-Estonia
The beneficiaries of the Estonia - UK tax convention
are residents of one of the two countries, individuals as well as companies. According to the provisions of the double tax treaty
signed between the UK and Estonia, any income received from interest, dividends
, royalties, and capital gains is taxed at a reduced rate. The capital revenues referred to by the convention
, include income from properties, salaries and pensions.
Since one of the main purposes of the tax convention
is to prevent double taxation
, the treaty
provides as well several methods through which some of the tax amounts charged on a company can be returned to the investor
. Through the credit method, a tax charged in the source country can be returned in the resident country upon an application for a credit in value of the respective amount of the tax. The investor has the option to reinvest the money thus returned in the business.
The provisions of the double tax treaty UK-Estonia
refer not only to the income tax, but also to the corporation tax
and the real estate tax.
You can call on our attorneys in Estonia
for a wide range of legal services
such as tax planning or counseling regarding the taxation rules in this country.
Advantages of the tax convention between UK and Estonia
A benefic effect of the double tax treaty UK-Estonia
is that it provides tax exemption or tax reduction for some of the revenues of companies. The optimal tax climate
insured by the convention
allows the development of strong economic ties between the two countries, and the base for future partnerships. The cooperation between the two economies is thus encouraged.
Another important advantage of the UK-Estonia tax treaty
is the introduction of the return methods in order to rebalance the income which might have been overtaxed. The friendly tax conditions, the increasing transparency and safety, encourage investors in one country to extend their commercial activity
in the other.
If you are an investor from UK who intends to conduct business in Estonia, you are welcome to contact
our Estonian lawyers
who can help you open a branch or subsidiary in this country. They can show you as well how you could benefit of the provisions of the UK-Estonia tax treaty in order to avoid double taxation of your business.