Estonia’s accession to the European Union on 1 May 2004 continue to produce changes in law. Provisions in the Treaty on European Union stipulate the principle of equal treatment for all residents of the European Union, including freedom of establishment for companies, and equal opportunities for enterprise.

As of 1 January 2005 Estonia has a new income tax rate of 24% and a basic exemption of 1700 EEK per month.

On 23 November 2004 the Riigikogu adopted the Act on Accession to the Convention on the Protection of the European Communities’ Financial Interests and Its Protocols, which entered into force on 16 January 2005.

On 28 June 2004, the Estonian Parliament passed the Telecommunications Act Amendment Act.

On 25 November 2004, the Riigikogu adopted the Credit Institutions Act Amendment Act. Once again, European Union law required the changes. These changes bring increased regulatory detail, particularly regarding activity licences and the acquisition of a qualifying holding.

On 10 February the Riigikogu adopted the State Export Guarantees Amendment Act. </B>The amendments increased the state guarantee limit amount and specified the provisions regulating investment guarantees.

On 12 January 2005 the Estonian Parliament (Riigikogu) adopted the Act on Involving Employees in Activities of Community-scale Undertakings, Community-scale Groups of Undertakings and European Companies.

On 28 June, the Estonian Parliament passed the Competition Act and Penal Code Amendment Act. The Act is aimed at bringing the Competition Act into compliance with current European Union competition rules.

Two judgements of the Civil Chamber of the Supreme Court made in December 2004 deal with the regulation of share takeover bids, an issue that has been a subject of disputes to date.

On 9 February 2005 the Riigikogu adopted the Act Amending the Securities Market Act, Financial Supervisory Authority Act, Estonian Central Register of Securities Act, Money Laundering and Terrorist Financing Prevention Act and Credit Institutions Act.

On 8 December 2004, the Riigikogu adopted a new Insurance Activities Act.Once again, accession required the new law, as the regulation of insurance activity, insurance intermediation, and supervision thereof is covered by European Union directives.

On 14 September 2005 the Estonian Parliament (Riigikogu) adopted a resolution approving the Estonian National Sustainable Development Strategy "Sustainable Estonia 21".up to 2030. The strategy pursues a holistic approach to society and does not deal with problems in specific areas.

On 17 June 2004, the Estonian Parliament adopted the <I>Seafarers Act Amendment Act </I>(298 SE). The purpose of the Act is to ensure that there is state supervision over conditions of employment at sea and to bring the <I>Seafarers Act </I>into compliance with International Labour Orgnization (ILO) conventions.

On 19 October 2005 the Estonian Parliament (Riigikogu) adopted the Electronic Money Institutions Act

An overview of recent legislative developments in Estonia

An overview of the recent legislative developments and court judgements in Estonia

Estonian Legal Developments

On 1 January 2006 extensive amendments to the Estonian Commercial Code (hereinafter: <B>CC</B>) entered into force, which <I>inter alia</I> deal with the foundation of a company; the principles regarding the general meeting of shareholders of a company and meetings of the management board and the supervisory board; the liability of members of management bodies; remuneration of members of management bodies; the pledging of shares of a private limited company; and the procedure for transformations

The Riigikogu passed the Customs Act on 13 April 2004. The Act accommodates Estonia's accession in to the European Union, establishing customs rules only in respect of issues that fall within the competence of a Member State.

The content of this article includes: Rules For State Participation In Private Law Legal Persons, New Product Safety Act, Charges On Holders Of Surplus Stocks Act , Explosives Act, Radiation Act, New Principles Of The Competition Act, Amendment Of The Packaging Excise Duty Act.