What are deductible expenses?
Deductible expenses are those that can be assigned to the company, that is, paid by the company and deducted as a business expense. Thanks to the innovative Estonian tax system, these expenses are exempt from taxes. They are considered money that you are reinvesting in the company.
Basically, it is any expense related to your activity that does not imply that you have a permanent establishment in another country, to avoid considering your company a tax resident there. Let's see some examples:
The expenses of your servers and web: hosting, domains, and any other web service that your business needs.
Administrative tools and software online or offline for management, accounting, etc.
Web tools, subscriptions, and software that you need to develop your activity.
Fungible office supplies.
Travel or public transportation for work, including flights, car rentals, services like Uber or Taxify, and accommodations like Airbnb. This includes trips to Estonia (if you need it to open your bank account, for example).
The fees of the payment gateways, such as the payment gateways of your online store or similar services.
Business lunches, but only for your client(s), not for you.
Basically, it is any expense related to your activity that does not imply that you have a permanent establishment in another country, to avoid considering your company a tax resident there. Let's see some examples:
The expenses of your servers and web: hosting, domains, and any other web service that your business needs.
Administrative tools and software online or offline for management, accounting, etc.
Web tools, subscriptions, and software that you need to develop your activity.
Fungible office supplies.
Travel or public transportation for work, including flights, car rentals, services like Uber or Taxify, and accommodations like Airbnb. This includes trips to Estonia (if you need it to open your bank account, for example).
The fees of the payment gateways, such as the payment gateways of your online store or similar services.
Business lunches, but only for your client(s), not for you.
Updated on: 16/08/2022
Thank you!