August 30, 2011 meelis Blog: declaring taxes in Estonia

The main day-to-day obligations of each legal entity in Estonia concerning taxes are submitting relevant tax declarations and transfering tax amounts to Tax Board in time.

In Estonia, after registration of a company in Commercial Register, separate general registration in Tax Board is not necessary, because information about the company is automatically forwarded to Tax Board. But in case the company requires or desires VAT number, it should be applied separately.

It is recommended immediately after registration of the company to conclude a Contract of E-services with Tax Board. The E-Services contract is free of charge, it simplifies substantially further communication with Tax Board by allowing to submit virtually all tax declarations through internet and operatively authorize accountant or accounting company to forward tax declarations and make inquiries.

The most common monthly tax declarations of the company are declaration of income and social tax Form TSD (must be submitted on the 10th date of every month) and VAT declaration Form KMD (must be submitted on the 20th date of every month). Depending on the nature of the business, there may be obligation to submit other declarations and pay other taxes, too.

Detailed information about tax related obligations of the company and due dates of different taxes is available on the internet homepage of Tax Board.

Filing and submitting relevant tax declarations and informing entrepreneur about payable tax amounts is traditionally an integral part of the accounting service.