Annual report

If you are not VAT obligator (annual turnover less than 40 000 EUR) and you don’t pay monthly salaries and have low amount transactions (up till 20 in a month), then you might need accounting once in a year just for the annual report.

Every company registered in Estonia has to submit an annual report to the Business Register within six months of the end of the financial year.

It has to be prepared in Estonian and in the currency officially applicable in Estonia (EUR). Delay in submitting the annual report on time may result in penalties and deleting the company from the Business Register.

Submitting an annual report is mandatory for all the companies registered in Estonia, even if the company doesn’t have any activities during the financial year. The deadline for an annual report is within six months from the end of company’s financial year, so if your company’s financial year ends on 31st December, the due date for submitting the report is 30th June.

All the accounting has to be completed before starting to compile the annual report.
Mandatory components of the annual report are management report, balance sheet, income statement and notes to the annual accounts. For larger companies’ cash flow statement and statement of changes in equity are also required.