Law amendments are planned aiming to reduce the taxes of the entrepreneurs that have to transport their workforce from further areas or cover their accommodation expenses.
The business-related expenses of an employer will no longer be considered fringe benefits if following conditions are met:
  1. The worker’s residence is at least 50 km away from the workplace and the worker does not own property closer to the workplace;
  2. The expenses per worker are up to 200 euros/month if accommodating in Tallinn or Tartu; up to 100 euros elsewhere.
If the amendments are passed in Estonian Parliament, the employer can in the future compensate the accommodation expenses of workers tax free.

Read more about the subject on our Estonian webpage: