11.10.2017

News

NJORD Estonia explains: Four important tips on tax planning to hire foreign specialists

Need additional employees? Moreover, do you need a specialist, who isn’t interested in moving to Estonia but prefers to work from their country of residence? Be sure to create a successful tax structure for both your company and the specialist!

In today’s business environment it is often necessary and reasonable to hire foreign specialists to work for Estonian businesses. From time to time such specialists prefer to remain in their country of residence where they can stay close to their families and accustomed living arrangements. To ensure a successful business relationship and optimal tax burden for both parties, keep in mind the following:

  • Pay attention to the responsibilities and rights given to the foreign specialist by the company, because those can determine if the business will be defined to have a permanent establishment abroad.
  • Depending on the nature and the intellectual property of the company, there might be a need for license agreements between the company and the foreign employee.
  • Find out whether the company must register itself as a non-resident taxpayer abroad.
  • Don’t forget the tax fringe benefits and social securities taxes, to ensure that all paper work is as convenient as possible for the foreign employee.

Since every specialist is an important asset to any company’s success, but particularly to start-ups and transportation companies, it is important to value their contributions from the perspective of taxes too.

NJORD’s partner Anne Veerpalu and lawyer Anne-Lii Kask will help you ensure successful tax planning when hiring foreign specialists.

Latest news

NJORD Estonia: Four options to employ additional labour for the holidays

The holiday season is often accompanied by a shortage of own personnel. Due to an increase in shopping activity, additional labour must be hired, e.g. by shops and manufacturing companies. Based on the rules of working and rest time, the existing employees cannot perform the extra work related to the temporary increase in workload. There are four options to solve the situation.

NJORD Latvia: Money laundering cases and practice

According to the information provided by the Financial Intelligence Service (FID), 102 criminal cases involving money laundering were initiated in the first half of this year. Of these, 55% referred to autonomous money laundering offenses. As a consequence, the FID issued 159 freezing orders of €104.8 million of alleged proceeds. This sum already exceeds that of all of 2018, when assets totaling €101.5 million were frozen. By the end of this year, the FID has plans to freeze a further €200 million.

NJORD Estonia: The use of AI in dermatology and skincare

AI is believed to have great potential in the field of dermatology and skincare. Currently, different solutions are being developed in order to personalise skincare for people. For example, algorithms can be developed, which make use of computer vision and machine learning in order to help people find the right skincare treatments for them. There are two ways how AI is used for this. First, it is possible to develop computer and mobile applications, which analyse the skin of a person based on the person’s selfie. The application analyses, what the person’s skin type is and what kind of products or treatments the person should use.

Get the latest legal news

We gladly share our knowledge with you. Subscribe to our newsletters.

Subscribe here