Running a company inevitably involves CIT. There is a lot of talk in Poland about Estonian CIT, which actually has little in common with Estonian CIT, where the income tax […]
Abolition of share capital requirement for companies in Estonia in 2023
On April 13, 2022, the Estonian Parliament adopted a new Business Register Act that removes the minimum share capital requirement for Estonian limited liability companies (OÜ). Since the first Estonian […]
Alternative Investment Fund in Estonia as an example of a fund investing in crypto
Investment Funds are structures that allow you to collect money from potential investors and use it to pursue a previously intended investment goal. So, if you have a great idea […]
Smart Contract – what is it and what are its limitations?
For many people the idea of Smart Contracts (literally smart contracts) is completely foreign, they may even think that they are completely useless to the average person. Nothing more mistaken, […]
Can residency in Estonia help you do business there?
Becoming a resident of Estonia is connected with a number of advantages. The most important advantages include: access to education, obtaining legal employment, the right to benefit from social assistance, […]
Doing business in Estonia. 5 common mistake to avoid
Setting up a company the right way can save you significant money, among other benefits. Let’s check a 5-item list which helps you avoid common business mistakes in Estonia. See what to watch out for!
What is EORI number and how to get one in Estonia?
Economic Operators’ Registration and Identification system operates in each country of the European Union. This system was established for customs authorities information about goods flow between the countries of the Community and the third countries (outside the EU).
EORI number is the identifier of the economic entity with the customs authorities and is a single number which is unique for each individual and valid throughout the Community. EORI number can be granted only once.
The taxation rules of a dividend from an Estonian company
How to calculate the value of CIT on dividends?
One of the possibilities of paying out the profit achieved by an Estonian company is the payment of dividends. As a rule, the dividend payment generates 20% CIT on the gross amount, which corresponds to 25% on the net amount. Taxation of the dividend is expressed by a ratio of 20/80 of the paid out amount. The tax due can be calculated using two alternative methods.
The tax amount calculated during the distribution of the entire profit generated by the company
Licences and permits in Estonia – when will you need one?
When you set up a company abroad, it is necessary to analyse, at the very beginning of the registration process, whether it is necessary to obtain a licence or permission for your type of activity. This is particularly important because each country in the European Union has different regulations for particular types of business activity subject to regulation and licencing. It is worth noting that in some cases one of the requirements is to operate in a certain legal form, ex. as a Joint Stock Company or to have a certain share capital. Therefore, it is worth consulting your plans with a law firm before starting your business to avoid costly mistakes at later stages.
Company in Estonia. For whom is this a good solution?
Establishing a company in Estonia is a particularly good solution for new technologies industry. Thanks to effective legislative processes and transparent legal environment, it is beneficial for cryptocurrency exchange or token issuing companies. What’s more, setting up a company in Estonia is also much easier and cheaper for firms active in traditional industries such as finance and shipping.
When Estonian company should be subject to an audit?
An audit is a detailed examination of the company. The auditor assesses correctness of the annual financial statement, which represents the economic situation of the company in a reliable and credible way.
Criteria that determine the audit obligation
The matter of audit and Review is regulated in the Estonian “Audit Activities Act”.
Mandatory audit concerns entities which have shown at least two of the following values in their annual report:
Sales revenues of more than EUR 4 000 000;
Total assets of more than EUR 2 000 000;
Average number of employees at least 50.
