TSD Declaration in Estonia: Complete Guide for OÜ Owners

What Is the TSD Declaration in Estonia?

The TSD (Tulu- ja sotsiaalmaksu ning kohustusliku kogumispensioni makse ja töötuskindlustusmaksu deklaratsioon) is Estonia's monthly declaration of income tax, social tax, unemployment insurance, and funded pension contributions paid on employee and director salaries.

In short: if your Estonian OÜ paid any salary or director's fee in a given month, you must file a TSD by the 10th of the following month.

This guide explains what the TSD covers, when you need it, what happens if you miss it, and how it works for e-Resident directors.

When Does Your OÜ Need to File a TSD?

Your OÜ must file a TSD for each month in which it paid:

• Employee salaries
• Director's fees (juhatuse liikme tasu)
• Board member fees
• Service fees to natural persons (freelancers without a company)
• Rental payments to natural persons
• Dividends to natural persons (these go on TSD Annex 7)

If you paid no salary or fees in a month, you do NOT need to file a TSD for that month. A TSD is only required when there is a taxable payment.

TSD Filing Deadline

The TSD must be submitted to EMTA by the 10th of the month following payment.

If the 10th falls on a weekend or public holiday, the deadline extends to the next business day.

What Taxes Does the TSD Cover?

Income Tax (Tulumaks)

• Rate: 20% on gross salary (note: rate increases to 22% from January 2025 for higher earners — check current EMTA guidance)
• Withheld from the employee's gross salary by the employer
• Paid to EMTA by the 10th

Social Tax (Sotsiaalmaks)

• Rate: 33% of gross salary — paid by the employer on top of gross salary
• Used to fund public health insurance and pension
• This is a significant cost: on a €2,000 gross salary, social tax is €660

Unemployment Insurance (Töötuskindlustusmakse)

• Employee contribution: 1.6% of gross salary (withheld from gross)
• Employer contribution: 0.8% of gross salary (paid by employer)

Funded Pension (II sammas)

• Only for employees who have opted into the funded pension (II pillar)
• Employee contribution: 2% of gross salary
• State supplements this with 4% from social tax

How to Calculate Salary Taxes: Example

Suppose you pay yourself a gross director's fee of €2,000 per month.

So €2,000 gross salary costs the company €2,676 and the director receives €1,568.

TSD for e-Resident Directors

This is a common question: do e-Resident directors of Estonian OÜs have to pay Estonian salary taxes?

The answer depends on whether you are paying yourself a director's fee (juhatuse liikme tasu):

If you are paying yourself a director's fee:

• Yes — Estonian income tax and social tax apply
• Even if you live outside Estonia, Estonian OÜ director fees are taxed in Estonia
• A TSD must be filed for each month you receive a payment

If you are NOT paying yourself a salary:

• No TSD obligation
• Many e-Residents take no salary and instead take dividends (which are filed separately)
• This is legal — there is no requirement to pay a salary from your OÜ

Key Insight: Salary vs Dividends

Most e-Resident OÜ owners who want to extract money from their company choose dividends over salary. Why?

• Dividends are taxed at the company level (22% corporate income tax on the gross amount)
• No social tax (33%) is due on dividends
• The effective tax rate is often lower than salary + social tax for the same amount extracted

See our complete guide on dividend tax in Estonia for the full comparison.

How to File the TSD

Step 1: Log in to e-MTA

Access emta.ee with your digital ID or mobile ID.

Step 2: Navigate to TSD

Go to Declarations → Monthly declarations → TSD

Step 3: Complete the Annexes

• Annex 1: Regular salary and director's fees for residents
• Annex 2: Payments to non-residents (if applicable)
• Annex 3: Payments subject to withholding for non-residents
• Annex 4: Payments to non-resident legal persons
• Annex 5: Business trip daily allowances above the tax-free limit
• Annex 7: Dividends distributed during the month

Step 4: Submit and Pay

After filing, pay the taxes by the 10th via bank transfer or e-MTA direct debit.

Penalties for Late TSD Filing

Frequently Asked Questions

Does my OÜ need to file a TSD if I had no employees and didn't pay myself?

No. If no taxable payments were made during the month, no TSD is required.

Can I pay myself as a service provider (B2B) to my own OÜ?

If your OÜ pays a service fee to another company you own, that is B2B and no TSD is required. However, EMTA scrutinizes arrangements where the director's personal labor is re-routed as B2B services to avoid employment taxes. This can be recharacterized as salary.

What is the tax-free minimum in Estonia?

The tax-free income threshold (maksuvaba tulu) is €654/month in 2024. Employees below a certain income level can benefit from this. However, e-Resident directors paying themselves small amounts should confirm their eligibility with an accountant.

Is social tax the same as pension contribution?

Social tax (33%) funds both public health insurance and the state pension. It is different from the voluntary funded pension (II pillar, 2% employee contribution).

Never Miss a TSD Deadline

iResident detects when your company has employees or directors receiving fees and automatically reminds you before the 10th of each month. Start your free compliance dashboard →

This guide is for informational purposes only. Tax rules change regularly — always verify with EMTA or a licensed Estonian tax advisor.