According to the the Accounting Act valid in Estonia all companies operating on the territory of Estonian Republic to keep their accounting. Therefore, accounting should be started immediately once the new company registered.

 

Frequently asked questions from beginner businessman to accountant

How to decide who will keep accounting in Estonia?

1.Why do we need internal accounting policies and procedures?

First of all, it’s required by the law. Secondly, in internal accounting policies and procedures you can describe how the work is actually carried out, to define yours and accountant responsibilities.

 

2. When annual report has to be presented?

An annual report has to be presented for a submission to the Estonian Business Register no later than six months after the end of the fiscal year.

 

3. Is it necessary to submit reports to the Statistics’ department?

Yes, otherwise you might receive a fine from Statistics’ department.

 

4. What is TSD and why it has to be necessarily submitted before the deadline?

TSD is a declaration of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension. For example, salaries, license fee, royalty, rent, fringe benefits, dividends, gifts, over tax-free limit executive expenses are taxed with this kind of taxes.  You have an obligation to submit the TSD by the 10th of each month. TSD must be submitted on time; otherwise the Tax and Customs Board will charge you a penalty.

 

6. When should I register tax-liable?

As soon as your sales revenue from the beginning of the year has exceeded 16,000 euros, you have to register as a tax-liable company immediately. You can also reregister your company as a taxable for VAT if you have not reached the sum of 16 000 euros yet.

 

7. What is KMD and why it has to be necessarily submitted before the deadline?

KMD is value added tax declaration. Declaration must be submitted to the Tax Department by the 20th of each month, if your company is taxable. KMD must be submitted on time; otherwise the Tax and Customs Board will charge you a penalty.

 

8. Can I use your house / apartment as an office?

Of course, you can. Usually the cost of the house is not completely paid by the company, and in the percentage ratio - depending on the actual area, which is used by your company for its operations.
Example: you have a two-bedroom apartment; you use the living room as an office, then you can consider the cost of the company 50% of the total invoice for the utility invoice.

 

9. Can I use my personal car for the for company needs?

Yes, you can. The best way is to do this under the lease free of charge, as in this case, all car-related expenses are borne by the company. However, keep a diary of travel is still required.

 

10. How long should I keep the documents?

The documents related to the company activities must be kept for 7 years.

 

11. Can I keep accounting myself?

Yes, of course, you can keep accounting yourself, however, lack of knowledge in accounting may negatively affect your business. Therefore, we recommend to delegate accounting keeping to the professionals, such as accounting company.

 

How to decide who will keep accounting?

In order to decide how to keep accounting: by yourself or delegate to an accounting company, find out what would be the total price if you use our company accounting services.  First of all estimate the approximate volume of documents for a month and use our price calculator to get an exact price. After that you can send us a price request directly from the calculator form or using our contact form below. If you find it hard to estimate the volume of documents at the moment, then let us know also using our contact form at the bottom of this page, we will help you and offer you the best price.

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After we contact you and clarify all the details, we will proceed to the compilation of contract. You can sign it using the id card or by sending us a scanned copy of the document, or at our office. Once the contract is signed, you will be assigned your personal accountant who will service your company and, if necessary, advice you on matters related to accounting and taxation. You will also have an access to our e-services system for business customers, which allows you to see the history of your transactions, current overview, and a VAT review separately.

 

If you need further information, please contact us here




 

The contract is signed. What's next?

First, you need to open access to your personal accountant to the Tax Department and Commercial Register systems. It also makes sense to give an accountant access to your bank account (without the right to make payments). Now you can throw off the care of the accounting part and only thing you have to do is send monthly not later than by the 7th of the each month all accounting documents for the last month, all the rest will take care your accountant. Each month you will get all necessary accounting reviews and financial statements, all required tax declarations will also be presented monthly.

More information about the standard terms of the contract