Residents pay tax on their worldwide income. Taxable income includes, in particular, income from employment salaries, wages, bonuses and other remuneration ; business income; interest, royalties, rental income; capital gains; pensions and scholarships except scholarships financed from state budget or paid on the basis of law. Taxable income does not include dividends paid by Estonian or foreign companies when the underlying profits have already been taxed. Non-residents pay income tax on their income from Estonian sources as listed in the Income Tax Act. Unilateral relief for double taxation in respect of income derived from abroad is available in the form of ordinary tax credit with per country limitation. The credit is limited to the Estonian tax computed on the item of income.
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