Estonia to cut income tax rate

Tax rate will be down to 20%

The parliament has approved a measure to lower Estonia’s flat income tax rate from its current 21 to 20% starting from 2015.

Opposition says that it will cost the state 70 million euros per year in lost revenue.

Changes to the country’s income tax law also include lowering the ceiling of claimable deductions from taxable income from EUR3,196 currently to EUR1,920 from 2012.