Summary

The author of this article focuses on the levying of income tax and social tax on remuneration to authors. According to the Income Tax Act, income received from the use of intellectual property is treated as a specific category of income on which tax is levied pursuant to a special procedure. The Copyright Act allows works to be created under an employment contract. In such case and if works are created under a subcontract, the employer or commissioner pays social tax for the author. Citizens of foreign states are exempt from payment of social tax on remuneration to authors. The author of this article is of the opinion that this discriminates authors who are Estonian citizens.