Accounting in Estonia

“Paying taxes is a duty, paying little taxes is an art!”

Accounting in Estonia is one of the indispensable aspects of doing business.

Sowana offers its clients accounting services for all active business forms in Estonia, from full-service bookkeeping to limited bookkeeping. In which you determine which functions will be performed by our accountant and which functions will be performed by you.

Services are provided in Russian, Estonian and English.

We work with residents and non-residents of Estonia.

Our clients include cryptocurrency companies, IT companies, construction and transport companies, wholesale and retail outlets, online shops, restaurants.

For 8 years of practical work we have formed a modern, convenient and understandable for clients accounting system. Our staff includes certified accountants with many years of experience.

We tell our clients how to keep records and draw up documents. What reports will be submitted by our accountant in Estonia.

Watch the video with the expert (2:08 min)

Despite the fact that Estonia has favourable taxation in terms of income tax, the country is not a classic offshore jurisdiction without accounting reporting requirements.

This means that accounting records must be kept regardless of whether the company is active or not at all. The members of the management board of a company are obliged either to keep the company’s accounting records themselves (as they are responsible for keeping the accounting records according to the Commercial Code), or to hire an accountant or conclude an agreement with a company offering accounting services in Estonia.

Immediately after concluding an agreement with our company for regular accounting services, our accountant will be added to the Tax and Customs Board as the responsible accountant of your company.

We will take care of all bookkeeping and filing of monthly and annual reports.

About the reporting system in Estonia

If you don’t have a VAT number and the company’s board member or employees (if any) do not receive a salary, you are only required to submit an annual report. According to the law, the annual report must be submitted within six months after the end of the financial year. The financial year is specified in the Articles of Association and is generally from January 1 to December 31.

For companies that have obtained VAT payer status (this obligation arises once the company’s turnover exceeds 40,000 euros since the beginning of the calendar year), monthly reporting is required. Two reports must be submitted: the VAT declaration (KMD) by the 20th of the month following the reporting month, and the payroll declaration (TSD) by the 10th of the month following the reporting month—if no salaries were paid.

Monthly reporting is also required if you pay a salary to at least one employee.

How much do accounting services cost in Estonia?

Preparation and submission of the annual report	from €150
Amendments to the annual report	€50
Application for an EORI code by proxy	€100
Application for a VAT number by proxy	€100
Hourly rate for accounting services	€50
Tax consultation	€50/hour
Written tax consultation	€100
Accounting services	from €50/month
Invoice preparation	€5
Payroll calculation (per employee)	€10
Preparation of travel expense report	€10
Preparation and submission of the turnover tax (KMD) report to the Tax and Customs Board	from €50/month
Preparation and submission of the payroll (TSD) report to the Tax and Customs Board	€50/month
Preparation and submission of statistical reports	€20/month
Company residency certificate	€50

Tax rates in Estonia as of 01.01.2025

Standard VAT rate is 22%, and from 01.07.2025 – 24%.
Personal income tax rate – 22%, corporate income tax rate – 22/78.
Social tax – 33%. The monthly minimum base for calculating social tax is €820, resulting in a minimum monthly obligation of €270.60.
Unemployment insurance contributions: 1.6% for employees and 0.8% for employers.
Mandatory funded pension contribution rate – 2%, 4%, or 6%, depending on the application submitted by the person to the pension register holder.
The minimum wage for full-time work is €886/month or €5.31/hour.

Audit in Estonia

According to the provisions of the “Auditing Activities Act of the Republic of Estonia”, the audit process can be conducted either as an audit or a review.

Audit is mandatory when:
At least two indicators exceed the following thresholds during the reporting year:	Sales revenue: €4 million Total assets: €2 million Average number of employees: 60
At least one indicator exceeds the following thresholds during the reporting year:	Sales revenue: €12 million Total assets: €6 million Average number of employees: 180
Review is mandatory when:
At least two indicators exceed the following thresholds during the reporting year:	Sales revenue or income: €1.6 million Total assets on balance sheet date: €0.8 million Average number of employees: 24
At least one indicator exceeds the following thresholds during the reporting year:	Sales revenue or income: €4.8 million Total assets on balance sheet date: €2.4 million Average number of employees: 72