# Split between board member and employee salary in Estonia %%[[European Taxation]] [[Taxation in Estonia]] [[Estonian taxation for businesses]]%% Source: [[How Taxes and VAT Works for Estonian Companies]] Previously, profit taken as salary had to be split between taking a board member salary and an employee salary, and it was necessary to have a percentage of both, generally 30/70 or 20/80 at the highest (with the lower percentage towards board member salary). Since only board member salaries are taxed in Estonia, there was an incentive to keep them as low as possible. In 2019, Estonia approved legislation that allows a 0/100 split, effectively paying nothing as board member salary, especially for companies who make income mainly with high-touch consulting services. This is a positive development because it means that employee salaries withdrawn from an Estonian company are only taxed by the country of the employee's tax residence.