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One of the important key phrases for a successful company is proper accounting. Accounting is not only a statutory activity but also an integral part of the business mechanism. Optimal management decisions, an increase in organisational transparency and the credibility of the company on the market is possible only with well-organised accounting.

Accounting is a specific field that requires corresponding professional skills but is not usually included under the main activities of an entrepreneur. Our goal is to make your life easier, while allowing you to focus on developing your business and creating added value. We provide a reliable, competent, flexible, and professional accounting service meeting the needs and requirements of each customer.

As an advantage, we offer a completely paperless, Internet-based accounting service, which makes accounting more affordable, mobile, and easier for you. We organise comprehensive accounting for small and medium-sized companies and for self-employed persons around the world.
 

Services

Commercial register operations

  • Consultation on establishing a company
  • Preparation of the memorandum of association and statutes
  • Registration of the company in the commercial register and payment of the state fee
  • Changes in the commercial register and preparation of the necessary documentation:
    • Business name change
    • Management board change
    • Change of shareholders
    • Amendment to the statutes
    • Increase or decrease in fixed capital

Daily accounting

  • Accounting for private limited companies in accordance with the laws of and the accounting principles generally accepted in the Republic of Estonia
  • Establishing accounting, drawing up rules and accounting plans for a new company
  • Checking original documents and entering them into necessary records (daily log, ledger)
  • Issuing sales invoices as necessary
  • Accounting for fixed assets
  • Stock accounting
  • Calculating wages for up to five employees (additional staff by agreement)
  • Purchase and sales ledger
  • Settlements with reporting persons, business trips
  • Preparing and submitting VAT accounts through e-Tax
  • Preparing and submitting tax reports through e-Tax
  • Compilation and submission of statistical reports by e-stat
  • Monthly reporting required for company management

Payroll

  • Registration of employees in the staff register
  • Drawing up contracts and other documents
  • Calculation of the monthly wages of employees and compilation of salary sheets;
  • Calculation of additional payments, bonuses;
  • Calculation of holiday pay and final payments
  • Accounting for personal car and business trip allowances
  • Filling in and submission of certificates of incapacity for work to the Health Insurance Fund;
  • Preparation and submission of declarations to the Tax and Customs Board;
  • Preparation of E101 applications
  • Preparation and submission of statistical reports to Statistics Estonia;
  • Salary and tax transfers

 

 

Annual report

  • Preparation of balance sheets and income statements
  • Preparing cash flow statements
  • Preparing statements of changes in equity capital
  • Preparing notes to annual accounts
  • Help in compiling management reports
  • Audit of the annual report, work with the auditor
  • Submission of the annual report to the commercial register

Financial and tax advice

  • Representing the client at the Tax and Customs Board
  • Registration of persons liable to VAT
  • Financial advising
  • Tax advice
  • Management accounting
    • Cost accounting
    • Internal reporting
  • Financial analysis:
    • Analysis of financial indicators
    • Horizontal analysis of financial statements
    • Vertical analysis of financial statements
  • Preparing cash flow forecasts

Accounting in Norway

  • Business advice for starting your business
  • Establishment and registration of a company in Norway
  • Provision of accounting services to both Norwegian and Estonian companies with a permanent business establishment in Norway
  • Registration of employees
  • Submission of tax returns
  • Preparation of an annual report

Useful

What you need to know before paying dividends in Estonia

Dividend Calculator
  1. The annual report must be approved

    Dividends are not allowed at the expense of the current year. That means that, before dividends become payable, the financial year must be completed and the report approved. Therefore, dividends can not be paid in the first year of operation, unless the first annual report has been prepared.
     
  2. The share capital has to be paid

    Since 2011, it is possible to establish private limited liability companies without paying a share capital, it must be taken into account that the shareholders must make a contribution to the share capital before submitting the dividends and submit an application for the amendment to the Commercial Register. After that, dividends may be distributed in the usual way.
     
  3. Dividends are paid out at the expense of retained earnings

    Dividends are paid out of retained earnings, which is the sum of the profit or loss for the financial year and the profit or loss for the preceding years. This means that if in the previous financial year the company had a loss of EUR 500 and, in that financial year, a profit of EUR 1750, then retained earnings would be 1750-500=1250 EUR
     
  4. Income tax on dividends

    In Estonia, the income tax rate is 20%. In calculating dividend income tax, it is assumed that the amount disbursed is the so-called net amount withholding tax. Therefore, a tax on dividends of EUR 1,000 is calculated as follows:

    1000 * 20% / 80% = 250 euros

Taxation of salaries in Estonia from 01.01.2018

Wage calculator

 

 

Starting from 1 January 2018, the total tax-free income for all revenues will be up to EUR 6000 a year, or up to EUR 500 per month, and, in this connection, will eliminate the additional tax-free income for pensions and benefits for accidents at work.

 

With an annual income of up to € 14,400 in 2018, the tax-free income is € 6,000 per year, with an annual increase of € 14,400 to € 25,200, the tax-free income will decrease according to the formula 6000 - 6000 ÷ 10 800 × (amount of income - 14 400), with an annual income of over € 25 200 tax-free income 0

 

Annual income includes all kinds of taxable income:

  • remuneration and other remuneration
  • service charge received under the law of obligations
  • business income
  • benefits from the transfer of property
  • lease and rental income
  • royalties
  • interest
  • dividend
  • taxable pension
  • subsidy
  • scholarship
  • bonus
  • compensation or other income
  • remuneration and other remuneration received abroad
  • dividends not subject to income tax in Estonia
  • dividend or equity outflow from an Estonian company, which is taxed at company level
  • the amount of tax deducted on the basis of the Business Taxation Tax Act, which is reduced by the social tax on business income tax

Annual income does not include:

  • sale of used personal items
  • grants paid by the Ministry of Social Affairs - child allowance, family allowance, subsistence benefit
  • tax-free scholarship
  • sale of real estate, which was a permanent residence
  • livelihood
  • gifts
  • special benefits
  • daily subsistence allowance
  • Work Ability Assistance, etc.

Tax-free income statement

 

Tax-free income can only be applied to one employer (tax deduction) on the basis of a person's application. A worker who works in several jobs must be aware that he or she has the right to apply tax-free income to only one job.

 

An employed pensioner who receives both a pension and a salary of less than EUR 500 has the right to apply tax-free income in two places and to file a petition for both the employer and the Social Insurance Board. It is important to keep in mind that an employed pensioner can divide the tax-free income of 500 euro between the employer and the Social Insurance Board.

 

It is recommended to submit one application for the whole year. In the case of variable income, the application may also be amended or reversed once a month so that the tax-free income is taken into account in a smaller amount or not taken into account at all.

 

Implementation of tax-free income on a monthly basis and on a yearly basis

 

The taxpayer can receive tax-free income on a monthly basis. The amount of tax-free income is calculated according to the gross salary or other remuneration of the employee. It must also be taken into account that if the income from several sources of income, such as salary, pension or other income exceeds 1200 euros per month, the monthly tax accounting does not give the same result as the annual tax calculation.

 

If the tax-free income is applied on a monthly basis in a larger amount, if the income allows, then a person must pay income tax on the income tax return.

 

Taking into account tax-free income can be checked during the year under the heading "Working and Disbursements" → "My Income" in the e-Tax and Customs Board
 

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