Basics

• How Do Taxes Work for Estonian Companies?

  If you are opening a company in Estonia, you have to understand how basic concepts such as taxes and VAT work, in order to invoice your customers properly. In addition, you need to differentiate between yourself (as a person) and your company. They are different entities, even if your company is just you. Your company, founded in Estonia, pays taxes in Estonia (unless special circumstances apply). In Estonia, company taxes are only paid when there is profit distribution (Eg. money that leaveSome readers

• What Happens If My Company Experiences Losses During the Previous Year?

  If your company has suffered losses during the year, to avoid bankruptcy, it is necessary to balance the company's books so that it reaches the minimum amount required to cover its share capital, as required by law. This can be done in several ways: One option would be to increase the company's share capital and make the payment of that share capital. If you have questions about how to pay (and optionally increase) the share capital, read this article (https://companio.co/blog/tips/how-tFew readers

• Does My Estonian Company Contribute to Social Security or a Pension Plan?

  If you are not a tax resident in Estonia, your salary does not contribute to your pension. This means that you will not be able to benefit from retirement in the future. If you need it, you should look for a private pension plan. Regarding social security, if you pay the minimum social security fee for your salary as an administrator (board member salary), you are entitled to health insurance coverage in Estonia. This would give you access to public health care and you would receive heaFew readers

Payments

• Do I Need to Pay Taxes in My Country Instead of Estonia?

  If you are a tax resident in a country with CFC rules (such as most European countries, USA, Canada, UK, Australia, etc.), there may be situations where local authorities claim that your company must pay taxes there instead of doing it in Estonia. The law says that this may occur for entities that: Have been incorporated according to local laws: this situation will never happen if you found your company in Estonia. Have their registered office in the local territory: this means thSome readers