A1 certificate for Estonians working abroad
What is an A1 certificate?
A1 certificate is a certificate proving the payment of social contributions in Estonia. The certificate concerns posted workers, and employees abroad and is not required while working in Estonia. The idea behind it is to prove that the insurance contribution are paid in Estonia and therefore they won’t be taxed in other countries. The A1 is part of the cooperation among States of the European Union. This does not concern employees on business trips. The community has established the rule that social contribution are to be paid but the A1 guarantees that individuals are not double taxed.
The free movement of workers provides ample opportunities for workers and for employers. The possibility of expanding your company from one Member State to another provides growth possibilities, this also means that once you become an employer abroad, you can send your workers from Estonia as posted workers. The A1 certificate becomes important knowledge for the employer at this point. The certificate is applied in the Estonian Social Insurance Board, when a worker is sent abroad for a longer time than a business trip. The salary the employer pays their workers, naturally is being taxed. The A1 certificate proves the payment of the social insurance contributions, so that the worker can use the social services. The responsibility for applying the certificate arises to the employer, when sending posted workers abroad. The certificate is personal for the employee but when sent abroad, the employer must apply for it.
Receiving the A1 certificate in Estonia is easy in case you are sent abroad by your employer. The certificate is applied by the employer and the worker can focus on the job. In case a person wants to work in multiple Member States without being a posted worker, they can apply for the certificate themselves. The application is submitted to the Social Insurance Board in Estonia. The idea is the same, you only have to pay the social contribution in one state, and the certificate handles the rest. When you begin employment abroad but want to stay a resident in Estonia, you apply for the certificate and provide it to the officials of the where your employment is located. It provides them with the information that social contributions are paid in Estonia, and therefore will exempt this taxation and social services can be used in the State where the work is done.
If you have any questions about A1 certificate for Estonians working abroad, please do not hesitate to contact us email@example.com.
T: +371 67 24 00 90
F: +371 67 24 00 91