Our tax consultation team has helped to put together a simple comparison table of the primary corporate and personal taxes in
Estonia, Finland, Sweden, the UK, Latvia and Lithuania.
Corporate taxes
| Tax rates | Estonia | Finland | Sweden | UK | Latvia | Lithuania |
| VAT | Standard 20%, threshold 40 000 € | Standard 24%, threshold 15 000 € | Standard 25%, threshold 30 000 € | Standard 20%, threshold £85 000 | Standard 21%, threshold 40 000 € | Standard 21%, threshold 45 000€ |
| VAT reduced rate | 9% for books, newspapers and periodicals, accommodation, medicine | 14% for groceries 10% for public transportation and cultural events | 12% for grocery, restaurants, accommodation 6% for public transportation, books, cultural and sport events tickets | 5% for electricity, gas and heating oil for non-business use, energy-saving materials, some hygienic products, some construction works | 12%, food for infants, pharmaceuticals, medical products for disabled persons, domestic passenger transportation, books (excluding e-books), newspaper and periodicals, accommodation, district heating 5%, range of locally grown vegetables and fruit | 9% for books, newspapers and periodicals, heating, accommodation, some public transportation 5% for medicine and some medical equipment |
| VAT zero rate and exempt from VAT | 0% for postal, insurance, healthcare and social services | 0% for postal, insurance and healthcare services | 0% for healthcare, dental care, social, educational, banking and insurance services | 0% public transportation, groceries, periodicals, children’s clothing, some construction work for housing, insurance, financial services, direct mail services, books, publications | 0% for intra-community and international transport | 0% for intra-community and international transport |
| Corporate income tax | 20% (only dividends are taxed, earnings are not taxed as long as they are reinvested in the company) | 20% | 20,6% | 19% | 20% (only dividends are taxed, earnings are not taxed as long as they are reinvested in the company) | 15%, companies with up to 10 employees and up to 300,000€ income per year may get reduced rate of 5% |
| Dividend tax | 20% | Progressive 7,5%, 27% | Swedish tax residents are taxed with the 3.12 rule. Lower limits are taxed with a 20% income tax. The part between the lower and upper limit is taxed as a private person’s income tax. The part that is exceeding the upper limit is taxed with 30% income tax. Non-tax residents are taxed based on the tax treaty or with 30% income tax. | 2020/21 dividend tax free allowance of £2,000 after which tax is applied depending on tax band. Basic rate 7.5%; Higher rate 32.5%; Additional rate 38.1% | 20% | Gross rate 15% |
| Fringe benefit tax | 20% (representative expenses); 20% income tax, 33% social tax (benefits for employees) | N/A | Taxed as employment income (progressive or 30% income tax and 31,42% social tax) | Taxed as employment income (personal income tax and national employer’s insurance) | N/A | Most employee benefits are treated as employment income, subject to personal income tax and social security contributions.
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| The contribution to the mandatory funded pension | N/A | 24,8% (with employee’s contribution); 17,65% (employer’s contribution) | Included in the social tax | Must register employees into the pension scheme if their earnings are above £10 000. Optional below £10 000. 2020/21 Employer contributes minimum 5% and employee contributes 3% | N/A | N/A |
| Social security contributions | 33%, 0,8% unemployment tax | 1,53%; Unemployment insurance 0,5% up to 2169000 €; 1,9% over 2169000 € | 31.42%; young and elderly 10,21% | Progressing 0%, 13,8%; regressing 0%, 12%, 2%
Employers are obligated to pay NICs based on a percentage of each employee’s earnings. For the year ending 5 April 2021, the rate is 13.8% on all earnings above GBP 169 per week. Businesses are exempt from the first GBP 4,000 per annum (maximum) of this liability. | N/A | 1,77% |
Personal taxes
| Tax rates | Estonia | Finland | Sweden | UK | Latvia | Lithuania |
| Personal income tax | 20% | Progressive | Progressive | Dividends: 0%, 7.5%, 32.5%, 38.1% Other income: 0%, 20%, 40%, 45% | Progressive 20%, 23%, 31% | 20% |
| Capital gains tax | 20% | 30% up to 30 000 € 34% if the realized capital income is over 30 000 € | 30% | Sale of residential property: 0%, 18%, 28% Other capital gains: 0%, 10%, 20% | 20% | 15% |
| Mandatory pension insurance | 2% | 7,5% (17-52 years) 8,65% (53-62 years) 7,15% (63-67 years)
| Included in the social tax | Employee contributes minimum 3% if enrolled | N/A | 0, 2,4%, 3% |
| Unemployment tax (employee) | 1,6% | 1,40% | N/A | N/A | N/A | N/A |
| Social tax | N/A | N/A | N/A | As an employee: you pay National Insurance contributions if you earn more than £183 a week for 2020-21. You pay 12% of your earnings above this limit and up to £962 a week for 2020-21. The rate drops to 2% of your earnings are over £962 a week. | 10,5% | 19,5% |
These tables are to be considered informative and general. Please notice that tax rates can change.
In case of further question, feel free to contact us via e-mail sales@1office.co.
