Private limited: salary vs dividend

This calculator compares how much an OÜ owner takes home when the same company cost is paid out as salary or as a dividend. Enter the total the company spends (gross + employer taxes for salary; dividend + income tax for a dividend).

How is it calculated?

• As salary: the gross salary is derived from the cost (cost ÷ 1.338), then unemployment insurance 1.6%, the 2nd pillar and income tax 22% (basic exemption €700) are deducted. Same logic as the salary calculator.
• As a dividend: the company pays income tax 22/78, so 78% of the cost reaches the owner. There is no additional personal tax for an Estonian resident.

Note: a dividend is usually more tax-efficient, but it provides no social guarantees (health insurance, pension, parental and sick benefits) and requires the profit to already be earned. An actively working owner is expected by the tax authority to also pay a reasonable salary. For a detailed dividend figure see the dividend calculator.