Do you want to start a business in the Baltics but are unfamiliar with local legislation, tax policy or possible regulatory or bureaucratic obstacles?
We can help you from the moment you register your company: we prepare and manage documents, communicate with administrative authorities and set up and manage the accounting of your company.
In addition, we offer a range of accounting services and financial consultations that will facilitate your company’s activities now and in the future.
REGISTERING AS A NON-RESIDENT EMPLOYER
A non-resident without a permanent establishment in Estonia who is an employer in Estonia must register themselves as a non-resident employer. A company is required to be registered with the Tax and Customs Board within 10 working days of the start of its period of tax liability so as to pay social and income tax.
In Estonia, social tax is paid to the Tax and Customs Board by the employer. We can help you with filling out the registration form R2.
REGISTERING A PERMANENT ESTABLISHMENT
A non-resident who operates in Estonia through a permanent establishment but who is not entered in the Commercial Register is required to register themselves as a taxable person.
If a permanent establishment has not been entered in the commercial register as a branch, the non-resident must register it with the Tax and Customs Board within 10 working days of the start of their period of tax liability in Estonia.
REGISTERING A BRANCH
If a foreign company wishes to offer goods or services in its own name in Estonia, it must be entered in the Commercial Register as a branch. A branch is not a legal entity.
The commercial code gives the branch its legal basis. In the cases provided by law, the company must be authorised to establish a branch in Estonia. The branch of a foreign company is entered in the Commercial Register on the basis of an application by the director of the branch. The branch is deemed to have been established as of its entry in the Commercial Register and dissolved as of its deletion from the Commercial Register.
A foreign company must maintain accounts pursuant to the requirements of the Accounting Act.
EMPLOYMENT REGISTER AND TAX LIABILITY OF THE EMPLOYER
Everyone, including non-resident employers, is required to enter all contractors who work for them in the employment register of the Tax and Customs Board.
Employees must be registered before they commence work.
The employer must make all tax and other payments to the bank account of the Tax and Customs Board by the 10th of the month following the payment, and the tax declaration form TSD must be submitted by the same time.
REGISTERING A NON-RESIDENT AS A PERSON LIABLE TO VALUE ADDED TAX, SUBMITTING FORM KMD AND DISTANCE SELLING
Registering as a person liable to value added tax(a VAT payer) is either mandatory or voluntary.
If the person has not yet made any taxable supply or their taxable supply does not reach the threshold of 40,000 euros, they can register as a VAT payer voluntarily. IMG Numeri will help you fill out the application for registering as a VAT payer as well as in representing you before the Tax and Customs Board.
TAX REPRESENTATIVE SERVICES FOR NON-RESIDENTS IN COOPERATION WITH AS IMG KONSULTANT
A non-EU person without a permanent establishment in Estonia who is engaged in enterprise is required to appoint a tax representative when registering as a VAT payer.
A non-resident’s tax representative is a person authorised by the Tax and Customs Board. The tax representative is authorised by the non-resident to represent them in the performance of the obligations arising in Estonia from the Taxation Act or a tax legislation.
E-RESIDENT
An e-resident is a foreigner for whom Estonia has created a digital identity and to whom it has issued a digital identity card – an e-resident’s digi-ID.
The e-resident’s digi-ID is a digital document which can be used in an electronic environment for identification purposes and for providing digital signatures. The digi-ID makes it possible for a foreigner to take part in Estonian operations, regardless of their place of stay.
The digi-ID can be issued to a foreigner who has a valid interest in using the e-services of Estonia. E-residency does not grant citizenship, tax residency or a residence permit or allow entry into Estonia or the European Union.
Find out more on the e-residency website.
APPLYING FOR A PERSONAL IDENTIFICATION CODE
An application may be submitted by an EU citizen, a third-country national or a recognised non-citizen of a foreign state. A person who is not a permanent resident of Estonia but who works in Estonia or works for an Estonian employer elsewhere is required to apply for a personal identification code in this way. Therefore, the employer is required to register the employee with the Tax and Customs Board while the employee has the right to insurance cover with the Estonian Health Insurance Fund.
Most databases in Estonia, including the health insurance database, are constructed in a way that identifies people on the basis of their personal identification code.
Call +372 686 7110 or e-mail numeri@numeri.ee us for information today!