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Tax settlement
of posted workers

Thompson & Stein Law Firm provides services to you
comprehensive services for the settlement of employees
posted during the implementation of projects in the territory of the Republic of Estonia.

Performance of contracts often requires sending employees to other countries to carry out work implementing, for example, foreign construction projects. In such cases, the entrepreneur must deal with the tax settlement of posted workers and several other obligations imposed on him by both national and EU legislation, as well as the legislation of the country to which the worker is to be posted to provide work.

Tax settlement of posted workers
– what do you need to know?

The first thing to consider with the tax settlement of posted workers is income tax return. The taxation of income earned in connection with the provision of work in the country of posting is subject to the rules of the country in which the work is carried out. Therefore, an entrepreneur must have knowledge of the rules and legal norms applicable in the country of posting in order to adjust his actions related to the tax settlement of posted workers to them.
Another issue concerning the tax settlement of posted workers is determining where social security contributions are due and where they should be paid. Determination of this obligation will often involve legal and substantive assessment of a specific undertaking where the tax settlement of posted workers is to be made.
The next aspect is the correct registration of posted workers in the relevant labour inspectorate. All these obligations must be fulfilled, taking into account Polish regulations, regulations of the country where the posted worked will provide work and EU regulations to allow for proper tax settlement of posted workers.
In case of tax settlement of posted workers in Estonia, it is also mandatory to notify the relevant Labour Inspectorate that our company employs workers posted to work in Estonia. It is necessary to meet many formal obligations and provide the authority with appropriate documents concerning both our company and posted workers.
Moreover, it one must consider two legal systems applicable to our workers, i.e. the Polish and Estonian Labour Code and a number of Estonian laws. It will be necessary to compare the labour law systems and determine which of them will prove to be more favourable for a posted worker. Other important issues concerning the tax settlement of workers posted to Estonia include minimum wages in Estonia, Estonian holidays and numerous rules regarding settlement of working time.

Why should you entrust us with the
tax settlement of posted workers?

Thompson&Stein offers comprehensive services regarding tax settlement of posted workers while you are carrying out projects in the Republic of Estonia. At the same time, we take into account the characteristics of each of your projects and advise you on the most suitable solution for the tax settlement of posted workers. Furthermore, our legal team also has extensive experience in advising on Estonian labour law. We have had many successes in handling projects related to tax settlement of posted workers. That is why entrusting our law firm with the handling of such a process will ensure a high degree of security for your project and relieve you of the additional burden associated with the posting of workers abroad.

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