Payroll News

Estonia Parliament Considers Bill to Amend Taxation of Pension Fund Transfers, Withdrawals

Nov. 18, 2019, 9:49 PM

The Estonian Parliament (Riigikogu) Nov. 14 accepted for consideration a bill to amend taxation of pension funds. The bill includes measures to: 1) allow tax-free pension fund withdrawals under the second pillar regime; 2) expand tax-advantaged investment options for second pillar individuals; 3) tax pension fund transfers at 10 percent; 4) allow the Minister of Finance to annually index the tax exempt maximum for the third pillar; and 5) amend conditions for employers to claim the 13 percent social contribution tax rate. The law would enter into force and generally take effect July 1, 2020. [Estonia, Parliament, 11/14/19]


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