This is where I collect everything you actually need to run your company day to day: tax rates and how they change, deadlines, and lists of the documents your accountant needs. Most posts grow out of questions our own clients ask us, so chances are you'll find the answer to yours here too. If something is still unclear, write or call. I'm happy to explain.
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.
Keep track of which period the service was provided in and when the sales invoice was issued.
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?
The most common documents you need to paper your business transactions
