Important Deadlines for Entrepreneurs: What to Declare and When

Declarations are a natural part of running a business.

There’s no need to be afraid of them, because they simply let the government know what’s happening in your company.

There aren’t actually that many deadlines, and once you mark them down in your calendar, it’s easy to stay on top of everything without stress.

VAT Return 

A VAT return must be submitted by every company that is registered as a VAT payer in Estonia.

This obligation starts when your company’s annual turnover exceeds €40,000.

You can also register for VAT voluntarily before reaching that limit, which can be useful if your clients are other businesses or if you make regular larger purchases where you can reclaim VAT.

Example:

If you buy a computer for €1,700 and you are a VAT payer, you can reclaim €329.03 in VAT.

For businesses that make such purchases regularly, the VAT refunded usually covers all the administrative costs of filing the declarations.

The VAT return (KMD) must be submitted by the 20th of each month for the previous month’s activity.

It is filed through the Estonian Tax and Customs Board (e-MTA) system.

Declaration of Income and Social Tax, Unemployment Insurance Premiums and Contributions to Mandatory Funded Pension (Form TSD)

The TSD declaration covers many types of payments.

All relevant payments must be declared by the 10th of the following month in e-MTA.

Salaries

If you pay yourself or an employee a salary, you must pay:

• Income tax: 22%

• Social tax: 33% (calculated from gross salary)

• Unemployment insurance: 1.6% from employee and 0.8% from employer

• Pension contribution (2nd pillar): 2%, if the employee has joined the scheme
  
  

Fringe Benefits

If you provide benefits to employees that are not paid in cash, for example, a company car for private use or free accommodation. These must also be declared.

There are, however, exceptions: certain health and sports expenses up to €400 per year per employee are tax-free.

Examples of tax-free expenses include:

• participation fees for public sports events,

• gym or swimming pool tickets, regular access to a sports facility,

• massage, rehabilitation, physiotherapy, psychologist or speech therapist services,

• dental care or nutrition counselling,

• health insurance premiums,

• maintenance costs for the employer’s own sports facilities.
  
  

If the €400 limit is exceeded, or if the expense doesn’t fit these categories (for example, sportswear, equipment rental, meals or transport), the extra amount is considered a fringe benefit.

For fringe benefits, the employer must pay:

• Income tax: calculated by the 22/78 method

• Social tax: 33%
  
  

Example:

The employer buys a sports package for an employee for €600 per year.

€400 is tax-free.

The remaining €200 must be declared as a fringe benefit, and the employer pays income tax and social tax on that amount.

Dividends

If your company pays dividends to its owner(s), you must declare and pay:

• Income tax: 22/78 method

There is no social tax on dividends.

Example:

If you pay out dividends of €100, you must add €28.21 as income tax.

Rental Payments

If you rent an office, car, or other property from a private person, you must pay:

• Income tax: 22/78 method
  
  

If you rent from another company, no income tax is added.

Non-business Expenses

If a receipt is lost or an expense is not related to your business activity, it must also be declared in the TSD.

Example:

If a €100 receipt is lost in May, it must be declared by June with income tax of €28.21.

Annual Report

All private limited companies (OÜ) must submit an annual report, even if there was no active business during the year.

The deadline is six months after the end of the financial year (for companies following the calendar year, that’s 30 June).

If you’re a micro-enterprise and want to prepare your annual report quickly, ann. was created exactly for that. You can complete your report in just 30 minutes, without hiring an accountant.

Other Reports (Only When Required)

Not every company has to submit every report.

Here are some examples:

• Statistics Estonia may occasionally request reports about economic activity or workforce.

• Excise declarations are required only if your business deals with fuel, alcohol or tobacco.

• INF 14 - must be filed if you’ve paid compensation to a private person for using their personal car. This must be submitted once a year, no later than 1 February of the following year.
  

All Deadlines at a Glance

Table: Important Deadlines for Entrepreneurs

Summary

The pattern of declarations in Estonia is actually quite simple:

• 10th day of the month: TSD (salaries, dividends, rent, fringe benefits, non-business expenses)

• 20th day of the month: KMD (VAT return - only if you’re a VAT payer)

• 30 June: Annual report
  
  

Other reports are required only if the law demands it or if an official request is sent to your company.

So, if you add these key dates to your calendar, nothing important will slip through the cracks.