REVIEW OF RISKS REGARDING LOW TAX JURISDICTIONS WITHIN THE ESTONIAN TAX SYSTEM

Andrei Novikov

Abstract


Over the last decade a tendency in the world started, regarding an opposition to the use of the offshore jurisdictions. Most of the countries have implemented legal norms, which create obstacles for pulling out capital from the state and into the low tax jurisdiction. As such, in order to do business one must not only understand the tax system of the country itself, but also how it regulates deals with offshores.
Ignoring this matter may lead to unplanned tax losses and damage the reputation of the company. At the same time, knowing such legal norms allow one to plan out his business and create an effective tax optimized business model, that will be able to provide stable income without breaking any legal norms.
In addition, Estonia, due its own tax system and due to being a member of EU provides sufficient grounds for effective tax planning. Thus, the matter of low tax jurisdiction regulation becomes even more important.

Keywords


Low tax jurisdiction; Estonia; Tax system; Tax planning

Full Text:

PDF

References


Article 1 of the Estonian Income Tax Law.

Article 50 of the Estonian Income Tax Law.

EU 2006 directive 2006/112/ЕС.

Article 10 of the Estonian Income tax law.

Commentary of the Estonian Tax and Customs board. Available at: https://www.emta.ee/et/ariklient/tulud-kulud-kaive-kasum/mitteresidendi-eesti-tulu-maksustamine/nimekiri-territooriumidest

Article 29 part 3 of the Estonian Income Tax Law.




DOI: http://dx.doi.org/10.21303/2504-5571.2017.00401



Copyright (c) 2017 Andrei Novikov

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN 2504-5571 (Online), ISSN 2504-5563 (Print)