How Estonian company must report as an e-resident applying

Many entrepreneurs often see reporting and paying taxes as a real pain. But, if you can simplify it to just the essentials, it can actually become a good motivator to keep going. How can e-Residency in Estonia make this possible?

What kind of reports / files when you have an Estonian company.

These are the main obligations:

1. Annual report
   • Every company must submit an annual report to the Estonian Business Register. https://Ariregister.rik.ee
   • Deadline: Within 6 months after the end of your financial year. If your financial year is the calendar year (1 Jan – 31 Dec), the deadline is 30 June.
   • Contents: financial statements (balance sheet, profit & loss, etc.), management report, often information about the shareholders / board.
   • Must be prepared in Estonian and in EUR.
   • Even if the company had zero turnover or was not active, the report still needs to be submitted.
2. Taxes
   • Corporate income tax: In Estonia, profits are taxed (often when distributed as dividends) rather than upon earning in many cases.
   • VAT: If your operations meet the VAT registration threshold, or if you engage in VAT-liable activities, you must register for VAT and file VAT returns.
   • Other taxes (if you have employees, or other obligations).
3. Legal duties & bookkeeping / accounting
   • Keep accounting records in accordance with Estonian law (Accounting Act).
   • Keep supporting documentation (invoices, bank statements, payroll etc.).
4. Other compliance
   • If distributing dividends, making sure net assets requirements are met.
   • If hiring staff, follow Estonian employment and social tax obligations

How to submit, practically

• Everything is done online, using the e-Business Register and other digital services liked SmartID: Smart way to identify yourself – Smart-ID or Mobile-ID: Applying and activating Mobile-ID – ID.ee. Because when you are holding of the e-Residency ID, you can sign documents digitally.
• If you use a service provider / accountant likes Maxwise OÜ: Expert Accounting and Tax Assistant – MAXWISE, they often assist in preparing and submitting reports.