LIS variable V2 Mandatory Employer Contributions Contents Social Tax: compulsory employers' social security contributions (national programmes) VARIABLE NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V11) First Law: Estonian Social Tax Law of 1991 (as amended in 1992 and 1994) Legislation New system: Social Tax Act of April 1998 (fully implemented since 1 April 2000) Coverage All employers. National Social Insurance Board (old-age, survivors, disability and basic/National pensions) Beneficiary Estonian Sickness Fund (services of medical tretment, cash benefits for sickness, maternity, nursing (financed programmes) or work injury and compensations for pharmaceuticals) Basis of assessement Employers' payments in cash and in kind made to natural persons. Social Tax includes: - a 20% rate for pension insurance (first pillar under the new system) - a 13% rate for health insurance. Rates Under the new system, there is no income ceiling for the contributions and there are minimum contributions based on the minimum salary for full-time work (EEK 1,600 a month in 2002) and on minimum earnings for part-time employment (EEK 700 a month in 2002). Taxes are due monthly and the remittance of tax is made congruent with the remittance of withholding tax; the tax is paid by the 10th day of the following month. Collection Under the new system, the contributions paid by ech person are accounted individually; this enables to link pension benefits to individual contributions made by each person during his/her whole career. LIS variable V7 Mandatory Contributions for Self-Employment Contents Social Tax: compulsory social security contributions for self-employed (national programmes) VARIABLE NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V11) First Law: Estonian Social Tax Law of 1991 (as amended in 1992 and 1994) Legislation New system: Social Tax Act of April 1998 (fully implemented since 1 April 2000) Coverage All private entrepreuneurs (memebers of family businesses, farmers and self-employed persons). National Social Insurance Board (old-age, survivors, disability and basic pensions) Beneficiary Estonian Sickness Fund (services of medical tretment, cash benefits for sickness, maternity, (financed programmes) nursing, adoption or work injury and compensations for pharmaceuticals) Natural persons pay tax on income derived from entrepreneurship, but for each insurable person able to work not less per month than the amount calculated from the monthly rate established by the Basis of assessement state budget for the the budgetary year, and not more than the amount calculated from fifteen-fold minimum wage. Social Tax includes: Rates - a 20% rate for pension insurance (first pillar under the new system) - a 13% rate for health insurance. Taxes are due monthly and the remittance of tax is made congruent with the remittance of withholding tax; the tax is paid by the 10th day of the following month. Collection Under the new system, the contributions paid by ech person are accounted individually; this enables to link pension benefits to individual contributions made by each person during his/her whole career. LIS variable V11 Income Taxes Personal Income Tax Contents Social Tax (national schemes) Land Tax Customs duty Personal Income Tax Income Tax Act of December 1999 (entered into force 1.1.2000). First law: Estonian Social Tax Law of 1991 (as amended in 1992 and 1994) Social Tax Legislation New system: Social Tax Act of April 1998 (fully implemented since 1 April 2000). Land Tax Law on Land Tax (effective July 1, 1993). Customs duty All resident natural persons and non-resident legal persons who derive Personal Income Tax taxable income. All employers and private entrepreuneurs (members of family Social Tax businesses, farmers and self-employed persons). Coverage Land Tax All land owners. The customs duty is imposed on goods conveyed into the customs territory of Estonia under the customs procedure “release for free Customs duty circulation”. This is Most Favored Nation (MFN) customs duty imposed on goods, which originate from foreign states. 44% of the income tax paid by or withheld from a resident natural person is received by the state and 56% is received by the local government of Personal Income Tax the taxpayer’s residence; the income tax paid by or withheld from a non- resident is received by the state. National Social Insurance Board (old-age, survivors, disability and Beneficiary basic/National pensions). (financed programmes) Social Tax Estonian Sickness Fund (services of medical tretment, cash benefits for sickness, maternity, nursing or work injury and compensations for pharmaceuticals). The tax accrues 100 percent to local budgets of the primary level local Land Tax authority. The tax is administered by the National Tax Board. Customs duty Income tax is charged on income derived by a resident natural person during one calendar year from all sources of income in Estonia and outside Estonia, including: - income from employment; - business income; - gains from transfer of property; - rent and royalties; - interest; Personal Income Tax - dividends; - maintenance support, pensions, scholarships, grants, benefits, awards, lottery prizes; - insurance indemnities and payments from pension funds; - income of a legal person located in a low tax rate territory. The taxable income of a natural person does not include fringe benefits (levied on employers), gifts and donations, dividends or other profit distributions made by a resident legal person (leveid on the donor). Basis of assessment Employers: employers' payments in cash and in kind made to natural persons. Self-employed: natural persons pay tax on income derived from Social Tax entrepreneurship, but for each insurable person able to work not less per month than the amount calculated from the monthly rate established by the state budget for the the budgetary year, and not more than the amount calculated from fifteen-fold minimum wage. National land tax is paid on all land except: (1) where economic activity is prohibited; (2) land attached to buildings of diplomatic or consular missions of foreign countries; (3) cemeteries and land under churches Land Tax and temples of congregations; (4) land used by foreign country or international organization. In addition, local land tax is not paid on land in municipal ownership or land in general use based on the decision of the local authority. Customs duty is imposed on importation of certain goods: live animals, Customs duty agricultural products, foodstuffs (falling within headings 0102 - 2309 of the Nomenclature of Estonian Commodities). State pensions and public transfers are not subject to Personal Income Personal Income Tax Tax. Social Tax Not applicable. There are only 2 temporary exemptions, which are following: - the rate of land tax for areas under cultivation used for the production of agricultural products and for natural grassland shall be 0,1 to 2,0 per cent of the assessed value of the land annually; Land Tax - recipients of pensions may be exempted from the obligation to pay land Exemptions tax to the extent of 0,1 hectares in cities and 1,0 hectare in rural municipalities on the condition that the applicant for the tax exemption uses the land for living and does not receive rent on the basis of the right of use of land. Customs duty is not imposed on goods which, pursuant to an international agreement, are not subject to customs duty. Goods Customs duty originating from EU are not subject to the customs duty because of the free trade agreement. Personal Income Tax: The basic exemption deductible from the income of a resident natural person during a period of taxation is EEK 9,600. Deductions The following expenditure categories may be deducted from income tax base: maintenance support, housing loan interests, training expenses, gifts, donations and trade union entrance and membership fees, expenses related to business (up to a ceiling). Personal Income Tax: Resident spouses who have been married to each other during the whole period of taxation may submit a joint income tax return. A joint income tax return may be submitted Tax unit also if the marriage was contracted during the period of taxation or if one of the spouses died during the period of taxation. Personal Income Tax Simple proportional tax rate of 26%. Social Tax includes: - a 20% rate for pension insurance (first pillar under the new system) - a 13% rate for health insurance. Social Tax Under the new system, there is no income ceiling for the contributions and there are minimum contributions based on the minimum salary for Rate full-time work (EEK 1,600 a month in 2002) and on minimum earnings for part-time employment (EEK 700 a month in 2002). Land tax rate is 0,1 - 2,5 percent of taxable value. Tax on land where Land Tax economic activity is restricted by law is charged either at 25, 50, or 75 percent of the tax rate on the decision of the Government of Estonia. Customs duty Tariff rates are between 0 – 59 % as WTO trade rules prescribe. By witholding for most regular income sources, by advance payments for business income, and by annual tax return for the remaining incomes. Unless the inly income source is taxed at source, taxpayers are required Personal Income Tax to submit an income tax return to the local Tax Board office of his or her place of residence concerning the income of a period of taxation not later than by 31 March of the year following the period of taxation. Collection Taxes are due monthly and the remittance of tax is made congruent with the remittance of withholding tax; the tax is paid by the 10th day of the following month. Social Tax Under the new system, the contributions paid by ech person are accounted individually; this enables to link pension benefits to individual contributions made by each person during his/her whole career. Land Tax Taxes are paid 3 times a year on 15th of April, July, and October. Customs duty LIS variable V13 Mandatory Employee Contributions Contents In Estonia there are no compulsory employees' social security contributions (national programmes) Legislation Coverage Beneficiary (financed programmes) Basis of assessement Rate Collection LIS variable V16 Sickness benefits Cash benefits from Health Insurance, including: Contents - compensation for illness or injury (incl. occupational accident or disease) (national programmes) - compensation for pregnancy or childbirth - compensation for nursing a sick family member Estonian Medical Insurance Law of 1991 (as amended in 1994) and Public Health Law of 1994. Legislation Note: a new Health Insurance Act will enter into force in October 2002). Coverage Insured employees, employers, farmers and individual workers, as well as registered unemployed. Current affiliation to social security regardless of length of service, and temporary incapacity of work Qualifying conditions as certified by the doctor or dentist treating the person. 60% of worker's average income for hospital treatment, 65% for sanatorium treatment, 80% for outpatient care for each calendar day for up to 120 calendar days. Sickness benefits 100% of worker's average income for work injury caused by employer, health damage, occupational disease, or work injury as a result of trying to prevent a crime until the degree of disability has been determined. Waiting period: one day. 100% of the insured's average income for 126 calendar days; in case of Benefits Maternity benefits multiple births, for 140 calendar days. No waiting period. 80% of worker's average income for 7 calendar days if caring at home for a family member over 14 years of age and for 14 calendar days if caring at home for a child under 3 years of age (up to 16 for a disabled child) if Nursing benefits the parent providing care is ill. 100% of worker's average income for 14 calendar days if caring for a child up to 14 years of age. No waiting period. Accumulation with other income Adjustment Contributions from employers and self-employed. No government subsidy (unless work injury if employer is insolvent, in which case transfers are included in V25S1). Financing principle Benefits are paid out in cash by the employer and then set off against his Financing health insurance constributions; for unemployed persons these cash benefits are paid by the Regional Health Funds themselves. Taxation Not subject to taxation. Contributions from benefits None. LIS variable V19SR State old-age and survivors benefits n.e.c. Old system (in force until March 2000): State Living Allowances, incl.: - old-age pension (consisting of the basic amount, employment-related amount and special supplements) - disability pension (incl. permanent work injury and occupational diseases and pensions for handicapped children) Contents - survivor's pension (national programmes) - National pension. New system (fully implemented since April 1, 2000): State Pension Insurance, incl.: - old-age pension - disability pension - survivor pension - National pension. First laws: Estonian Pension Law of 1991 (suspended in 1992) and Resolution of the Estonian Supreme Court on the Establishment of Living Allowances of 1992 Old sysytem: Law on State Living Allowances of 1993 (as amended in 1994), Law on Legislation Superannuation Pensions and Law on Early Retiment Pensions of 1992 (as amended in 1993 and 1994) New system: State pension Insurance Act of June 1998 and Social Tax Act of April 1998 Coverage All persons currently residing in Estonia. Qualification period: 15 years of service. Standard retirement age: 62 1/2 (men) and 57 1/2 (women) rising 6 months per year, until it reaches 63 for both men and women (2016). Early-retirement: possible for those retiring from unhealthy jobs (5-10 Old-age pension years earlier), for those rearing a handicapped child (5 years earlier), for dwarfs (15 years earlier) and for employees in professions which involve loss of professional ability before reaching the retirement age after a qualifying work record (military personnel, pilots, policemen, Qualifying conditions ballet dancers, teachers of schools for disabled children, etc.). (old system) Full or partial permanent or long-term disability for work regardless of Disability pension pensionable length of service. Survivors incapable of gainful activity. Survivors include: children, siblings, grandchildren under age 18 or disabled, parent, surviving Survivor's pension spouse or guardian not gainfully employed and raising the deceased's children, brothers, sisters or grnadchildren under 14 years of age. Paid to men at least 65 years of age and women aged 60 or more who National pension had never worked. Qualification period: 15 years of pensionable service in Estonia counted as: - the pensionable length of service obtained up to 31.12.98 (i.e. all gainful activities for which the employer, self-employed or the state was under the obligation to pay social tax, plus a number of equalised periods for conscripts, registered unemployed, vocational students and carers); Old-age pension - the pension insurance period obtained from 1.1.99 (acquired only on the basis of payment of social tax). Standard retirement age: 62 1/2 (men) and 57 1/2 (women) rising 6 months per year, until it reaches 63 for both men and women (2016). Early retirement: possible up to three years before attaining standard retirement age. Deferment: possible. Persons aged at least 16 years who have a permanent work incapacity (lasting either 6 months, 1 year, 2 years, 5 years or until retirement age) with the extent of at least 40% and with 1 to 14 years of insurance coverage or credited pensionable service depending on the age of pension claimant (no qualification period is required for 16 to 20 year olds). Work incapacity is certified by medical expertise and expressed as the Disability pension percentage of loss of capacity for work in the following way: - total work incapacity (100%): if the person is unable to earn any Qualifying conditions income in order to support him/herself as a result of a serious (new system) functional impairment caused by an illness or injury; - partial work incapacity (40-90%): if the person is able work and earn income, but, due to functional impairment caused by an illness or injury, is not able to perform suitable work in the extent corresponding to the general national working time. Non employed survivors if teh deceased insured had by the date of death fulfilled the qualification period which would have been necessary for the grant of a disability or old-age pension. Survivors include: - children, siblings or grandchildren under age 18 (24 in case of enrolment in daily studies); siblings and grandchildren are eligible if they were maintained by the deceased insured; - parent in pension age or permanently incapable to work; Survivor's pension - pregant widow from the 12th week of pregnancy; - widow in pension age or permanently incapable to work if marriage lasted at least 1 year; - divorced spouse who reached the pension age or became permanently incapable before divorce or within 3 years from divorce if marriage lasted 25 years; - parents or guardian who raises an up to 3 year old child of the deceased insured. Paid to all persons who are not entitled to an employment-related National (or social) benefit in case of old-age (old-age pension), work incapacity (disability pension pension) or death of the beadwinner (survivors' pension). Basic amount: basic (or national) pension (EEK 800). Employment-related amount: 6.4% of the national pension rate for each year of service. Supplements for special categories (i.e. for participants in the Estonian War of Independence 1918-1920, for pensioners bringing up children, Old-age pension participants of World War II, etc.): to be calculated on the basis of the basic pension. Living Allowance for working pensioners: 50% of basic pension, to be raised to 100% if the monthly wage does not exceed the basic pension.. The amount depends on the degree of disability for adults: EEK 1,210 for Group I invalids, EEK 1,025 for Group II and EEK 800 for Group II invalids (i.e. the same as the basic pension). Benefits Pension for handicapped children under 16 amounts to EEK 820 (EEK (old system) Disability pension 860 if entitled to survivor's pension and EEK 1,045 if orphan). In the case of permanent disability caused by work injury and occupational diseases, the responsible employer pays the disabled person compensation for the loss of earnings from which the disability pension is substracted. The amount depends on the survivor: - EEK 860 for every adult; - EEK 820 for every child under age 18; - EEK 985 for an orphan. Survivor pension Funeral grant: EEK 1,500 until February 2000, EEK 1,650 threafter In the case of death caused by work injury and occupational diseases, the responsible employer pays the survivor compensation for the loss of earnings from which the survivor pension is substracted. National pension EEK 800. The general old-age pension consists of 3 additive elements: - base amount: flat-rate amount (EEK 410 in 2000). - length of service component: pensionable length of service (periods acquired up to 31.12.98) multiplied with the value of one service year (EEK 31.69 in 2002) - insurance component: sum of annual pension insurance coefficients Old-age pension (amounts of social tax register after 1.1.99) multiplied with the value of an annual coefficient (1.0 in 2000). Early retirement old-age pension: pension shall be reduced by 0.4% for each relevent month; once granted, the early retirement pension is retained also after attaining the pension age. Deferred old-age pension: pension shall be increased by 0.% for each relevent month. Duration: from the onset of the work incapacity for the duration of permanent work incapacity (by the latest until retirement age, when the pension is automatically converted into an old-age pension). Amount: percentage corresponding to the loss of capacity for work of the calculation basis, but not less than the national pension rate, where Disability pension the calculation basis is the higher of the following two amounts: - amount of an old-age pension clalculated from the individual's actual pensionable length of service and pensin insurance coefficients; Benefits - amount of an old-age pension for a person with 30 years of (new system) pensionable length of service. Duration: from the death of the insured for the period during which the recipient satisfies the established criteria (age, status of permanent work incapacity, etc.), or until 12 months after remarriage. Amount: percentage of the calculation base depending on the number of dependent family members eligible to a survivor's pension: 40% for 1 family member, 70% for 2 and 100% of the calculation base for 3 or Survivor pension more family members, where the calculation base is the higher of the following two amounts: - amount of an old-age pension clalculated from the deceased insured persons' actual pensionable length of service and pensin insurance coefficients; - amount of an old-age pension for a person with 30 years of pensionable length of service. The amount is linked to National Pension Rate (NPR: EEK 800 in 2000) in the following way: - National old-age pension = NPR; National pension - National disability pension = percentage corresponding to the loss of capacity for work of the NPR; - National survivors' pension = 40%, 70% or 100% of the NPR depending on the number of dependent family members. Old-age pension is payable irrespective of engagement in any gainful activity (under the new Accumulation with other system this is not the case for early retirement). income Persons eligible for more than one type of pension/living allowance are only entitled to collect from one source. The national pension rate is fixed by Parliament in the annual state budget. The value of one year of pensionable length of service and the value of an annual pension insurance coefficient (under the new system) are determined by the Governemnt depending on Adjustment budgetary constraints. Note: starting from 1.4.02, pensions will be indexed annually on 1 April to the increase in consumer prices and the increase in social tax revenues. Employers' and self-employed contributions (see V2 and V7), plus government subsidies for some pensions (disbility pension to disabled Financing principle child and pension supplements). Pay-as-you-go system. Pensions are not subject to taxation. Financing Note: starting from 2002, state pension will constitute, in principle, a Taxation taxable income; in practice, there will be a very high non-taxable minimum). Contributions from benefits None. LIS variable V20SR Child/family benefits n.e.c. Child benefits, including: - Birth grant - Child allowance - Child care benefit (replaced the Maintenacne benefit since 2000) Contents - Single parent's child allowance (national programmes) - Allowance for a child of servicemen - Child school allowance - Supplementary benefit for families with 4 or more children - Foster care and guardianship allowance - Independent life grant for orphanage children Legislation Child Benefit Law of April 1992 (as amended in 1994) and law of 1998 Coverage Permanent residents, aliens with temporary residence permits and refugees. Qualifying conditions All children until age 16, age 19 if full-time student. Lump-sum paid at 25 times the child allowance rate (EEK 3,750) for first Birth grant child and multiplets, and at 20 times the CAR (EEK 3,000) for 2nd subsequent children. Paid monthly to families with one child at one CAR (EEK 150), with 2 Child allowance children at 1.5 CAR (EEK 225) and for each additional child 2 times the CAR (EEK 300). Paid to both non-working and working parents caring for each child under the age 2 at 0.5 times the child care benefit rate (EEK 600) and for each Child care benefit child between ages 2 and 3 at 0.25 times the CCBR (EEK 300). Since 2000 also paid for children of age 3-8 in families with under 3 year- olds and with 3 or more children (EEK 300).. Supplementary child care A parent with 4 or more children is paid until youngest completes first Benefits allowance grade at 2 times the CAR. Single parent's child Paid until child reaches age 16 (19 if full-time student) at 2 CAR (EEK allowance 300). Allowance for a child of 5 times the CAR (EEK 750) while person is in military service. servicemen Child's school allowance Annual payment for each child in school at 3 times the CAR (EEK 450). Supplementary benefit A parent with 4 or more children is paid until youngest completes first for families with 4 or grade (EEK 500). Since 2000 paid for every child and not any more for more children school-going children only. Foster care allowance 2 times the CAR (EEK300). Start in independent life Paid to orphans or persons without parental care who lived in foster home grant or school for disabled for at least 3 years in a lump-sum of EEK 5,000. Accumulation with other income The Child Allowance Rate and the Child Care Benefit Rate are both set annually by the Parliament Adjustment within the State Budget Act. Financing principle Fully financed by the State. Taxation Not liable to taxation. Financing Contributions from benefits No contributions. LIS variable V21SR Unemployment compensation benefits n.e.c. Unemployment benefit (starting in 2003, the risk of unemployment is to be covered by a two-tier system of cash benefits: contributory earnings-related unemployment insurance benefit and non- Contents contributory flat-rate state unemployment allowance) (national programmes) Early retirement benefit Retraining scholarship First law: 1991. Legislation Current law: 1994 (implemented in 1995) New Social Protection of the Unemployed Act (entered into force on 1.10.2000) Coverage Permanent residents aged 16 and over (up to pensionable age) who are capable of gainful activity. Must be between age 16 and retirement age, registered as unemployed by the employment service and with 180 days of work during the 12 months before becoming unemployed; the following periods Qualifying conditions are counted towards the qualifying period: full-time study in an educational institution, service in the military, raising a child under age 7, treatment in hospital, nursing the sick, being disabled or elderly, or in detention. EEK 400 for 180 calendar days (extended to 270 with the new Act). May be extended up to 90 days if raising 3 or more children under age 18 Unemployment benefit or if family income is below poverty level, during period of vocational Benefits training or community placement. Same amount as unemployment benefit extended by further up to 180 Early retirement benefit days if less than 180 days remain until retirement age. Retraining scholarship EEK 600 per month to unemployed persons attenting retraining. Accumulation with other income Adjustment No automatic indexation. Financing principle Fully financed by the state. Taxation Not liable to taxation. Financing Contributions from benefits No contributions. LIS variable V25SR Social assistance cash benefits n.e.c. Subsistence benefits (income support), including: - benefits for ensuring minimum subsistence level (incl. compensation for dwelling expenses until September 2000) - dwelling benefit (since 1.10.2000) Contents - additional benefits (national programmes) Social benefits (incl. burial benefit, compensation for occupational accident or occupational disease, benefit for medical treatment in health resort, supplementary holiday payments, additional child care leave, paid breaks for feeding the child, other benefits) Benefits for disabled persons (incl. disabled child allowance, caregiver’s allowance, disabled parent’s allowance, education allowance, transport allowance, telephone allowance). Legislation Subsistence benefits: 1994 Coverage All residents (incl. persons with temporary residence). Benefit for ensuring minimum subsistence level: paid monthly to all persons whose income after paying for dwelling remains below subsistence line established by Government (the basis for the means- Subsistence benefits test is the preceding three months income). Dwelling benefit: since October 2000, dwelling compensation is only Qualifying conditions granted to persons whose income is lower than dwelling expenses (standard size). Social benefits Various, according to the benefit. Benefits for disabled Disablity status (no means-test). persons The subsistence benefit guarantees low income families the established subsistence level (poverty line). Subsistence benefits Average amounts for 2000: EEK 602 for minimum subsistence benefit and EEK 343 for additional benefits. Burial (or funeral) benefit: EEK 1,500 until February 2000, EEK 1,650 threafter. Compensation for occupational accident or occupational disease: same amount as from Health Fund (i.e. 100% of average earnings), but paid from state budget if employer is insolvent. Benefit for medical treatment in health resort: ? Supplementary holiday payments: holiday payment for over 28 days to Social benefits the under-aged (juvenile) and the disabled (the basis for calculating them is the average salary), and extra 3 to 6 days of holidays (depending on the number ofunder 14 year-old children) to mothers, fathers or Benefits guardians for child care leave (EEK 66 per day). Additional child care leave: one monthly extra day-off for the parent of the disabled child (EEK 66 per day). Paid breaks for feeding the child: work-breaks granted to mothers for feeding the under 1.5 year-old children (linked to average salary). Disabled child allowance: EEK 840 per month for a child with moderate disability and EEK 940 per month for a child with severe or profound disability. Caregiver’s allowance: EEK 300 per month paid to non-working parent Benefits for disabled or guardian of child. persons Disabled parent’s allowance: EEK 300 per month. Education allowance: EEK 300 per month paid to non-working disabled students. Transport allowance: on average EEK 50 per month. Telephone allowance: on average EEK 29 per month. Accumulation with other income Adjustment Not applicable. Financing principle Fully financed by the state. Taxation Benefits are not subject to taxation. Financing Contributions from benefits None. LIS variable V29 Value of non-cash medical benefits Non-monetary social assistance Contents NB The original variable contains also consumer goods from non-profit organisations (mainly from (national programmes) churches, most of them are second-hand clothes). Legislation Social Assistance Law of 1995 Coverage All residents. Qualifying conditions Means-test. Perambulators paid by local authorities, riding to school and back for free for schoolchildren, Benefits telephone subsidies, dwelling benefits and institutional support. Accumulation with other income Adjustment Financing principle Public benefits are fully financed by the State/local authorities. Taxation Not liable to taxation. Financing Contributions from benefits No contributions. LIS variable V31 Value of non-cash education benefits Contents Non-monetary other transfers (national programmes) NB The original variable contains also in-kind transfers from private institutions and persons. Legislation Coverage All residents. Qualifying conditions In-kind stipends from state, stipends and allowances for studies from fund from Estonia, stipends Benefits and allowances from some foreign country, other allowances for self-education, for development of production activity for self-employer and gifts. Accumulation with other income Adjustment Financing principle Public benefits are fully financed by the State/local authorities. Taxation Not liable to taxation. Financing Contributions from benefits No contributions. The present document draws extensively from the following sources: 1. "Social Protection in Estonia", Estonian Ministry of Social Affairs, 2000 (http://www.sm.ee/gopro30/Web/gpweb.nsf/pages/indexeng.html). 2. "Summary of the tax system", Estonian Ministry of Finance, 2002 (http://www.fin.ee/eng/index.html?id=3814). 3. Social Security Programs Throughout the World, 1999 (http://www.ssa.gov/statistics/ssptw/1999/English/index.html). 4. "The social dimension of enlargement: social law and policy in the Czech Republic, Estonia, Hungary, Poland and Slovenia", European Parliament, Working Paper SOCI 100, 1998 (http://www.europarl.eu.int/workingpapers/soci/100/default_en.htm). 5. "ECONOMIC AND SOCIAL CHANGES IN THE BALTIC STATES IN 1992-1994", Estonian Academy of Sciences, Institute of Economics, 1995 (http://www.ibs.ee/ibs/economics/esc/index.html).