Jurisdiction – ESTONIA

Companies have to pay income tax on expenses unrelated to their business. Among others, payments concerning which the taxpayer does not have an adequate source document, shall be taxable by income tax.

Commission Regulation (EC) No 1251/2011 establishes new application thresholds that determine which contracts fall within EU-wide tendering procedures. As to the supply and service contracts and design contests, the new thresholds are as from 1 January 2012 until 31 December 2013, depending on the contracting authority (i) 130 000 EUR (central government authority), (ii) 200 000 (other contracting authorities) or (iii) 400 000 (authorities in special sectors). With regard to public works contracts, the new application threshold is 400 000 EUR.