Agreement for a management board of Estonian company

If a member of the management board performs their official board member duties, a management board member agreement must be concluded. Ensuring the agreement corresponds to the actual nature of the work or service guarantees uniform taxation for all individuals and promotes fair competition.
  In 2024, the monthly base amount for the minimum social tax obligation is €725, meaning the minimum social tax obligation for the employer is €239.25 per month.

When considering the remuneration of a member of the management board, it is important to note that a management board member with a contractual agreement under the law of obligations primarily receives compensation for the responsibility they assume in their role as a board member. This may also include general company management tasks. 
If a management board member performs specific tasks or work for the company that is not directly related to their duties as a board member, an employment contract must be concluded for those tasks, and taxes are paid under the standard rules applicable to all employees.
For more detailed information, we can offer you accounting services. Additionally, we can prepare a civil law contract for the management board member or, if necessary, an employment contract for the board member.

  The most cost-effective option for a company is to conclude a management board member agreement with the company's board member. (In 2024, the monthly base amount for the minimum social tax obligation is €725, meaning the minimum social tax obligation for the employer is €239.25 per month.) Such an agreement can be concluded if the management board member performs general board member duties for the company, and in this case, no tax complications are anticipated.