Practical posts on Estonian taxes, bookkeeping and running a company, written by Anu Allikvee and drawn from 32 years of experience.
Anu Allikvee
CEO of AR Tähelend OÜ
Estonia does not tax company profit as it is earned. An Estonian OÜ pays no corporate income tax on profit it keeps and reinvests – tax is only triggered when profit is distributed, mainly as dividends, at 22/78. Here is how that works in 2026, with a worked example.
An Estonian company's annual report must be filed with the Business Register within six months of the end of the financial year. Here is who has to file, how it works in the e-Business Register, and what happens if you miss the deadline.
If you have looked at an Estonian company name, you have seen the letters "OÜ" after it. Here is what they stand for, how an OÜ compares to the other Estonian legal forms, and what basic accounting duties come with running one.
When an Estonian company pays dividends, it pays income tax of 22/78 of the net amount, that is 22% of the gross. The 14/86 reduced rate and the 7% withholding were abolished in 2025. A worked example and the filing deadlines.
Holiday pay = average daily pay × number of holiday days. The average comes from the previous six months' pay. Here is the formula, the exception for a fixed salary, and the payment deadline.
In 2026 the Estonian minimum wage changes mid-year: €886 a month (€5.31/h) from January to March, then €946 a month (€5.67/h) from 1 April. Here is what that means for employers and payroll.
All the key 2026 Estonian tax rates for business owners and accountants in one place: income tax, basic exemption, social tax, VAT, unemployment insurance, dividends, per diem and car allowance.
In 2026 Estonia has 252 working days and 2,004 standard working hours. A month-by-month table of working days, working hours, public holidays and the four working days shortened by 3 hours.
From 1 January 2026, Estonia has a single basic exemption of €700 a month, no longer tied to how much you earn. That changes things for employees and employers alike. Here is when a new application is needed, how the exemption works for pensioners (€776), and the new minimum social tax. Read on so there are no surprises on the January pay day.
The minimum wage rises to €886 (+8%). The foreign per diem rises to €75. The personal car allowance rises to €0.50/km. The limit on employee accommodation costs in Tallinn and Tartu rises to €500
Does your company need an audit or a review in 2024? New thresholds, 25% higher than before, change who has to have an audit for many Estonian companies. This guide explains in plain terms when an audit or a review is mandatory.
From 1 January 2025, a number of tax changes take effect for companies and private individuals alike. Know them all, so you can plan your finances and your taxes under the new rules.
The annual report shows how profitable a company is, whether it is sustainable and purposefully run, how innovative it is, what risks it takes, and whether it will last.
This is Tähelend's anniversary year – 30 years of record-keeping, reporting and learning, and of experience gained and shared.
Keep track of which period the service was provided in and when the sales invoice was issued.
Steady growth, and new paths worn in on the way to our place in Estonian business life. This is the story of one small company – and a small piece of Estonian life.
When someone asks what costs their company or non-profit can put through the books – in other words, whether a cost is related to the business or the organization's activities – the first question to answer is always: what was this cost for?
There is no doubt that an internship is essential in every profession. Theory is the foundation, and it matters! But experience matters just as much – knowing how to apply what you have learned in real working life.
Is every venture an act of creation? I would dare to say yes – when knowledge, skill and experience go into it. And heart, and certainly a sense of responsibility. When something new is made, something needed. When value is created. It doesn't matter what the product is: a thing, a job, a service, or a feeling.
In the master's program in economics at the University of Tartu, we once had to do a SWOT analysis – in short, a technique for weighing the strengths and weaknesses of any undertaking. Quite a few of the business owners in the room chose the topic "How to choose an accountant." It turned out to be a hot topic, and a good fit for the coursework too.
Every business owner is an accounting entity, and the Accounting Act requires every accounting entity except a micro-undertaking to draw up internal accounting rules describing how the company's accounting is organized. The law lists specific points these rules must cover and be built on.
The novel opens in 2016, a few days before the summer solstice, but it soon becomes clear that much of what happens was set in motion long before. Trouble over land, a company brought down, tangled love affairs and friendships, and the question of whom – or what – to believe: it all fits into a single summer.
The most common documents you need to paper your business transactions
We adopted Uku to bring order to our work processes. Every job, the time it took, and the number of entries and postings can now be found in a single report.
