Estonia Accounting and Tax Considerations

Estonia Accounting and Tax Considerations

Accounting and tax considerations are important factors when incorporating your company. By outsourcing your Estonia accounting and tax obligations to Tetra Consultants, you can be confident that you will be in the best hands. Our team of consultants will ensure that your firm’s financial statements, corporate tax returns and audits are timely completed without the need for you to travel.

Additionally, outsourcing your accounting and tax needs to Tetra Consultants will allow you to reduce overhead costs while be ensured of timely reporting and filings. Before the start of the engagement, our accounting team will also keep you updated of all the required deadlines and expectations. Thereafter, we will prepare all required filings in advance to ensure that the stipulated deadlines are met.

Annual Reporting Requirements

• Typically, an Estonia entity financial fiscal year is from 1 January to 31 December.

• Generally, all Estonian companies are required to submit an annual report to the Estonian Tax and Custom Boards within 6 months after the end of the financial year.

• The annual report should consist of the annual accounts, cash flow report and statement of changes in equity.

• An audit review obligation will apply depending on your type of entity: micro-sized, small-sized or medium-sized and its relevant threshold.

Corporate Income Tax

• Estonia’s corporate tax rate is levied at 20%.

• Combined corporate income tax and payroll tax return have to be submitted to the local tax authorities. While, taxes must be remitted by the 10^th day of the month following a taxable payment.

• For any late payment, taxpayers will have to pay an interest for the late payment. The interest rate is charged at 0.06% of the tax due for each day of delay.

Value-Added Tax

• The standard Value-Added Tax rate is held at 20%.

• You will be obliged to register if you have an annual turnover of minimally €40,000.

• Value-Added Tax returns have to be submitted to the tax authority by the 20^th day of the month following the taxable period.

Withholding Tax

• There is no withholding tax to be payable on dividends.

• However, royalties paid to non-residents will be subjected to a withholding tax rate of 10%. While, for resident individuals, a higher withholding tax rate of 20% is imposed.

Contact us to find out more about accounting and tax considerations in Estonia. Our team of experts will revert within the next 24 hours.