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Accountant in Estonia

In the fast-paced world of business, staying on top of your finances is crucial. But for many entrepreneurs and business owners in Estonia, managing the complexities of accounting and bookkeeping can be a daunting task. From navigating the intricacies of Estonian tax laws to ensuring compliance with financial regulations, the challenges of accounting in Estonia can quickly become overwhelming.

That’s where Company for Business OÜ comes in. We’re here to help you streamline your bookkeeping processes, optimize your financial performance, and achieve your business goals. We offer tailored accounting packages for small business, as well as customized solutions for larger organizations, ensuring that you have the support and expertise you need to thrive.

Peculiarities of accounting in Estonia

Estonia is known for its progressive approach to business and technology, and this extends to its accounting practices as well. When it comes to accounting in Estonia, there are several peculiarities that set it apart from other countries. One of the most notable features is the widespread use of digital solutions, which streamline the accounting process and make it more efficient.

All companies are required to maintain accurate financial records and submit regular reports to the authorities. This is where the role of a chartered professional accountant becomes crucial. These professionals are well-versed in Estonian accounting regulations and can ensure that your company remains compliant with all legal requirements.

  • One of the advantages of doing business in Estonia is the simplified tax system. The country has a flat tax rate of 20%, which applies to both personal and corporate income. This makes it easier for accountants to calculate and report taxes, as there are fewer variables to consider.
  • Another peculiarity of accounting in Estonia is the use of the e-Residency program. This innovative initiative allows entrepreneurs from around the world to establish and manage their businesses entirely online. By becoming an e-Resident, you can access a range of digital services, including online banking and accounting software, making it easier to handle your financial affairs remotely.

However, navigating the complexities of Estonian accounting can be challenging for those unfamiliar with the local regulations and practices. This is where outsourcing your bookkeeping to a professional accounting firm can be beneficial. By working with experienced accountants who understand the intricacies of the Estonian system, you can ensure that your financial records are accurate and up-to-date, while also saving time and resources that can be better spent on growing your business.

Peculiarities of accounting in Estonia

We understand that every business has unique accounting needs. That’s why we offer a comprehensive range of Estonia accounting services designed to cater to businesses of all sizes and industries. Whether you’re a startup navigating the complexities of financial management or an established enterprise seeking to optimize your accounting processes, our team of experienced accountants is here to help.

Our accounting services in Estonia include:

Annual Report for an Estonian Company

We assist in preparing and submitting the annual report to the Commercial Register, ensuring compliance with Estonian regulations.

Assistance in Obtaining an EORI Number

Our team can guide you through the process of obtaining an Economic Operator Registration and Identification (EORI) number, which is essential for businesses engaged in international trade.

Individual Accounting Consultation

We offer personalized accounting consultation to help you make informed financial decisions and optimize your business processes.

Assistance in Registering VAT in Estonia

If your business meets the threshold for VAT registration, our accountant Estonia team can assist you in navigating the registration process.

Monthly Maintenance of the Master Ledger

Our bookkeeping services include maintaining accurate and up-to-date financial records, ensuring that your master ledger and balance sheet are always in order.

Payroll Calculation

We handle the complexities of payroll calculation, including salary computation, tax deductions, and employee benefits.

Calculation of Turnover Tax

Our certified bookkeeper team ensures that your business complies with Estonian tax regulations, accurately calculating and reporting turnover tax, income tax, and social tax.

Compiling and Submitting Monthly Reports to the Tax Department

We prepare and submit monthly reports to the Tax and Customs Department, ensuring that your business remains compliant with tax obligations.

Compiling and Submitting to the Commercial Register a Report for the Business Year

Our accounting firm assists in preparing and submitting the annual business report to the Commercial Register, providing a comprehensive overview of your company’s financial performance.

What are the advantages of our accounting firm 

At Company for Business OÜ, we believe that our Estonia accounting services offer a compelling advantage over other providers in the market. Here’s why partnering with us can be a game-changer for your business:

  • Expertise and Experience: With years of experience navigating the complex landscape of accounting in Estonia, we have the expertise to handle even the most challenging financial scenarios. 
  • Personalized Service: When you partner with us, you’ll be assigned a dedicated accountant Estonia who will take the time to understand your business inside out. This allows us to provide tailored solutions that meet your specific needs, rather than a one-size-fits-all approach.
  • Comprehensive Service Offerings: As a full-service accounting firm, we offer a wide range of bookkeeping and accounting services to cater to businesses of all sizes and industries. From basic bookkeeping and monthly financial reporting to payroll management and tax compliance, we’ve got you covered. 
  • Cutting-Edge Technology: We embrace the latest technology to streamline our accounting services and provide our clients with real-time insights into their financial performance. Our cloud-based accounting software allows for seamless collaboration and secure access to your financial data anytime, anywhere.

How much does a personal accountant in Tallinn cost

Monthly fee for non-VAT-registered companies from 90 EUR/month
Monthly fee for VAT-registered companies from 180 EUR/month
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What affects the cost of accounting services:

  • Scope of Services: Basic bookkeeping services, such as recording transactions and preparing monthly financial statements, will generally be less expensive than more complex accounting tasks, such as tax planning, financial analysis, or auditing.
  • Size of Your Business: A small startup with a handful of transactions per month will typically require less accounting support than a larger enterprise with multiple revenue streams, employees, and international operations. 
  • Frequency of Services: If you only need occasional bookkeeping support or annual financial reporting, you may be able to secure a lower rate than if you require ongoing monthly accounting services.

Basic requirements for the organization of accounting

Properly organizing your company’s accounting is not only essential for financial management but also a legal requirement in Estonia. As a business owner, it’s crucial to understand the basic requirements for setting up and maintaining your accounting system. Failure to comply with these regulations can lead to legal and financial consequences that could jeopardize the health of your business. Here are the key requirements for organizing your accounting in Estonia.

Annual Return Submission: Every company registered in Estonia is obligated to compile and submit an annual return for the preceding year to the Commercial Register by June 30 of the present year. This annual report must include financial statements, such as the balance sheet and profit and loss statement, as well as other relevant information about the company’s activities. Failing to submit the annual return on time can result in fines and legal penalties.

Recording Business Transactions: This means that every financial transaction, whether it’s a sale, purchase, or payment, must be recorded in your company’s bookkeeping system. Accurate and timely recording of transactions is essential for maintaining a clear picture of your company’s financial position and performance.

Thorough Documentation: Every transaction must be supported by appropriate documentation, such as invoices, receipts, or contracts. These documents serve as proof of the transaction and are essential for auditing and tax purposes. Proper documentation also helps prevent fraud and errors in your accounting records.

Reliable and Standardized Accounting Practices: Your accounting system must follow generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).

Archiving Accounting Documents: Maintaining all accounting documents in the archive for a minimum of 7 years is a mandatory requirement. This includes all financial statements, accounting records, and supporting documentation. Proper archiving ensures that your company can provide accurate and complete records in case of an audit or legal dispute. It also helps protect your company’s financial history and provides valuable insights for future decision-making.

Whether you need assistance with monthly bookkeeping, annual reporting, or tax compliance, we offer tailored accounting packages for small business and large enterprises alike.

Our accounting services in Estonia are designed to give you peace of mind, knowing that your financial records are accurate, compliant, and up-to-date. We use the latest accounting software and technologies to streamline your bookkeeping processes and provide real-time financial insights. With our help, you can focus on growing your business while we take care of the financial details.

Taxes in Estonia 2024

Today, Estonia has one of the most convenient and favourable business taxation systems in the world. Thanks to the government’s active support of small businesses, Estonia has become a European centre for entrepreneurship and start-up projects. All business processes associated with owning an Estonian company can be conducted online, including company registration, filing of declarations and interaction with state authorities. Responsibility for tax obligations in Estonia rests with the Tax and Customs Board.

The following tax rates are valid in Estonia for the year 2024:

VAT tax rate
Value added tax rate: 22%, 9% and 0%
Income tax
Income tax rates: 20%; 14%, 10%, 7%, 0%, 20/80 and 14/86
Social tax
Social tax rate 33%
Contribution to funded pension
The funded pension contribution rate is 2%.

There are also such taxes in Estonia as:

  • land tax
  • advertising tax
  • tax on road and street closures
  • tax on motor vehicles
  • pet tax
  • entertainment tax
  • car parking fees
  • environmental use charge

For more information on rates and conditions, please contact our consultant.

PAYROLL TAXES

Social tax rate 33%

According to Article 4 of the Social Tax Act, social tax is paid by:

  • A resident legal entity
  • An individual
  • A non-resident who has a permanent place of business in Estonia or who makes payments specified in paragraph 1 of Article 2 of the Social Tax Act
  • An institution of the state, municipality, or city
  • The state, municipality, or city in cases specified in Article 6 of the Social Tax Act.

In 2024, the monthly rate on which the minimum social tax liability is based is 654 euros, i.e. the minimum social tax liability for the employer is 239,25 euros per month. The taxable period for social tax is one calendar month. An individual-entrepreneur pays social tax per year starting from at least 12 times the monthly social tax rate.

 Personal Income Tax

Income tax rate: 20%

It applies to an individual – both a resident and a non-resident, who receives income subject to taxation.

Unemployment insurance payments

The unemployment insurance payment rate in 2024 will be 1.6% for an employee and 0.8% for an employer.

Contribution to the funded pension

The funded pension contribution rate is 2%.

The funded pension taxation payment applies to residents of Estonia who are obliged or voluntarily joined the second stage. Payment is made by withholding the payment amount from the employee’s payment amount by the employer. The salary of non-residents of Estonia is not subject to the funded pension payment.

How to order Estonia accounting services 

Ordering Estonia accounting services from Company for Business OÜ is simple. Our process includes an initial consultation, service proposal, contract signing, onboarding, ongoing bookkeeping and accounting, regular reporting, and annual review. Whether you need a personal accountant in Tallinn or remote bookkeepers for ecommerce, we have the expertise to streamline your accounting and help you achieve your financial goals. Contact us today to get started.

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