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Accountant needs two separate sets of e‑service rights to act on behalf of your company: Preparation and submission of the annual report – granted in the Business Register (Rik.ee) environment. Below you will find step‑by‑step instructions for both systems. Prerequisites Log in to the MTA self‑service at https://www.emta.ee. Choose your company from the top‑right drop‑down menu (if you have more than one). In the left‑hand menu click Settings → Access permissions → Access permissions of representatives → New access permission. Enter the accountant’s personal ID‑code and (optionally) set an expiry date. Select rights: Package method – scroll to the bottom, press Search, tick e.g. Accountant Package (includes submission of all tax returns) and press Add. Separate rights – open the Separate access permissions tab if you need custom scope (e.g. only VAT returns). Most useful rights are grouped under “Over‑areas”. (Optional) To allow your accountant to manage further user rights, search for “right of the representative … to administer user rights” and add it. Press Save. Access is active immediately. ### Troubleshooting If the person is not found, double‑check the ID‑code or ask the accountant to log in to MTA once (this creates a user profile). Remember to update or revoke rights if you switch service providers. Log in to https://rik.ee and open My undertakings. From the top bar select Annual Report → Defining persons entering data. Click Add new person for entering data. Enter the accountant’s personal ID‑code. Select the relevant company (if prompted). Tick “The person entering data is authorised to submit the report”. Press Save. Important: The filed report must still be digitally signed by at least one board member before it is deemed submitted. MTA access‑rights setup – 3‑minute video This guide is for general information only and does not constitute legal advice. Procedures may change – always refer to the latest instructions on the official websites of the MTA and the Business Register. Zero corporate tax on retained earnings Corporate income tax (20 % of the net amount, calculated as 20/80 on the distributed sum) is due only when you pay dividends or treat funds as non-business expenses. Profits that stay in the company can be reinvested tax-free for unlimited periods, accelerating growth and cash-flow planning. Possibility of tax-exempt dividends in group structures Dividends received from an Estonian or foreign subsidiary may be distributed further without additional Estonian tax if participation conditions are met. Likewise, profits allocated to a foreign permanent establishment are generally exempt. No additional personal income tax for Estonian residents If you are an Estonian tax resident, dividends you receive from your company are not subject to extra personal income tax, corporate tax settles the obligation. (Non-residents must follow the rules of their home country.) Flat, transparent rates elsewhere in the system Payroll taxes, VAT, and other levies use uniform rates with straightforward reporting, reducing compliance overhead. Remember: The company (a legal person) and you (a natural person) are separate taxpayers. Keeping finances distinct avoids misclassification and ensures you benefit fully from Estonia’s business-friendly regime without risking penalties or double taxation abroad. There is no tax ID in Estonia. Estonia does not issue a separate Tax Identification Number (TIN). Instead: These identifiers are sufficient for all official, tax-related, and administrative purposes within Estonia. Keeping your residence information up to date in the Population Register is a legal obligation. To register your residence in Estonia, you must submit a notice of residence to the city or rural municipality government of your place of residence. This ensures that your address is correctly recorded in the Estonian Population Register, as required by law. You can submit your notice of residence in the following ways: The notice of residence form (printable and digital versions) is available on the Ministry of the Interior’s website. If you have multiple permanent addresses, one must be designated as your main residence—the address with legal effect in the register. Other addresses may be submitted as additional residences, but the main one must always be accurate and up to date. Whenever you move within Estonia, relocate abroad, or return from abroad, you are legally obligated to update your residence address in the Population Register. According to Estonian tax law, e-residents are considered non-residents for tax purposes. This means that only income earned in Estonia is taxed in Estonia. If there is no Estonian-sourced income or activity, you must pay taxes in the country where the service is provided or the income is earned. E-Residency alone does not create tax residency—neither in Estonia nor elsewhere. An Estonian company established by an e-resident is automatically considered an Estonian tax resident company, and subject to Estonian corporate tax rules. However, the personal tax residency of the e-resident does not change simply because they hold an e-Residency card. It’s a common misconception that e-Residency provides residency or tax residency status—it does not. E-Residency is a digital identity, not a visa, residence permit, or travel document. It allows you to manage a company remotely, but it has no impact on where you pay personal taxes. Keep in mind: Your personal tax residency is determined by factors such as physical presence (e.g. more than 183 days in a country) and centre of economic or personal interests. Your personal tax residency may also trigger permanent establishment rules, which could lead to tax obligations for your Estonian company in your country of residence. Lead-in: In Estonia, dividends can only be paid out from the previous financial year’s profit, not from the current year’s income. The company must first complete and submit its annual report to confirm the available distributable profit. Before any dividends can be paid: The share capital must be paid in — Estonia allows companies to be founded without immediate capital contribution, but dividends can’t be distributed until this requirement is fulfilled. The payment must be registered in the Business Register and declared to the Estonian Tax and Customs Board (ETCB). Once registered, the capital can be used freely for business activities (e.g., expenses, salaries); it doesn’t need to sit idle in the account. Declaring the minimum share capital (€2,500) to the ETCB also gives a future tax advantage: if the company is liquidated, this amount can be withdrawn tax-free, reducing your tax liability. The standard corporate income tax is 24% on the gross amount of dividends (calculated as 20/80 on the net payout). If dividends are received from a subsidiary or a foreign permanent establishment, they may be exempt from Estonian tax—especially if a double taxation treaty applies. Estonia also offers a 14% reduced corporate tax rate, but it comes with specific conditions and applies only to regular profit distributions over time: You can start using the 14% rate from the third financial year of the company’s operations—only if dividends were paid in the second year. In the third year, 1/3 of the previous year’s dividends can be taxed at 14%, the rest at 20%. In the fourth year, 2/3 of previously distributed dividends (from years 2 and 3) may qualify for the reduced rate. The remaining portion continues to be taxed at the standard 20%. If a company uses the 14% rate, and the recipient of dividends is a private person, then an additional 7% personal income tax is withheld. This tax can usually be credited in your home country, assuming a valid tax treaty is in place and proof of payment is obtained from the ETCB. ✅ Dividends can only be paid from previous-year profit, after the annual report is filed. ✅ Share capital must be paid in and registered before paying dividends. ✅ Standard tax: 24% corporate income tax. ✅ Optional reduced tax: 14% + 7% personal tax (with conditions). ✅ Always declare share capital to ETCB for tax benefits during liquidation. Lead-in: MOSS (Mini One Stop Shop) is a simplified EU VAT reporting scheme designed for companies selling digital goods and services to private individuals in other EU countries. Instead of registering for VAT in every member state where your customers are located, MOSS allows you to report and pay all cross-border VAT through the Estonian Tax and Customs Board. This applies to services such as: Website hosting Software downloads Streaming or downloaded media (music, apps, videos) Online gaming Access to digital databases Distance learning or digital teaching services If your Estonian company uses MOSS, you issue invoices with your Estonian VAT number, but apply the VAT rate of the customer’s country. The Estonian tax office then redistributes the VAT to the appropriate member states on your behalf. MOSS is only available to VAT-registered companies. You must submit a special quarterly MOSS declaration (in addition to your regular monthly VAT returns). You are still required to file monthly VAT declarations for domestic transactions. To stay compliant, you must have a reliable system to track your customers’ locations and apply the correct country-specific VAT rates. Lead-in: There is no tax ID in Estonia. Estonia does not issue a separate Tax Identification Number (TIN). Instead: These identifiers are sufficient for all official, tax-related, and administrative purposes within Estonia. Zero corporate tax on retained earnings Corporate income tax (20 % of the net amount, calculated as 20/80 on the distributed sum) is due only when you pay dividends or treat funds as non-business expenses. Profits that stay in the company can be reinvested tax-free for unlimited periods, accelerating growth and cash-flow planning. Possibility of tax-exempt dividends in group structures Dividends received from an Estonian or foreign subsidiary may be distributed further without additional Estonian tax if participation conditions are met. Likewise, profits allocated to a foreign permanent establishment are generally exempt. No additional personal income tax for Estonian residents If you are an Estonian tax resident, dividends you receive from your company are not subject to extra personal income tax, corporate tax settles the obligation. (Non-residents must follow the rules of their home country.) Flat, transparent rates elsewhere in the system Payroll taxes, VAT, and other levies use uniform rates with straightforward reporting, reducing compliance overhead. Remember: The company (a legal person) and you (a natural person) are separate taxpayers. Keeping finances distinct avoids misclassification and ensures you benefit fully from Estonia’s business-friendly regime without risking penalties or double taxation abroad. E-residency in Estonia does not automatically mean tax residence. It only provides the opportunity to use the e-services that the Estonian state offers. Among them is the establishment of the company. If your turnover is less than EUR 40,000 per the calendar year, you don’t need to add VAT to your invoices. If the turnover is generated outside Estonia, you do not have to add VAT to your invoices if you exceed this amount. If the employees do not work in Estonia, the labour tax according to Estonian law does not have to be taken into account. Accountant needs two separate sets of e‑service rights to act on behalf of your company: Preparation and submission of the annual report – granted in the Business Register (Rik.ee) environment. Below you will find step‑by‑step instructions for both systems. Prerequisites Log in to the MTA self‑service at https://www.emta.ee. Choose your company from the top‑right drop‑down menu (if you have more than one). In the left‑hand menu click Settings → Access permissions → Access permissions of representatives → New access permission. Enter the accountant’s personal ID‑code and (optionally) set an expiry date. Select rights: Package method – scroll to the bottom, press Search, tick e.g. Accountant Package (includes submission of all tax returns) and press Add. Separate rights – open the Separate access permissions tab if you need custom scope (e.g. only VAT returns). Most useful rights are grouped under “Over‑areas”. (Optional) To allow your accountant to manage further user rights, search for “right of the representative … to administer user rights” and add it. Press Save. Access is active immediately. ### Troubleshooting If the person is not found, double‑check the ID‑code or ask the accountant to log in to MTA once (this creates a user profile). Remember to update or revoke rights if you switch service providers. Log in to https://rik.ee and open My undertakings. From the top bar select Annual Report → Defining persons entering data. Click Add new person for entering data. Enter the accountant’s personal ID‑code. Select the relevant company (if prompted). Tick “The person entering data is authorised to submit the report”. Press Save. Important: The filed report must still be digitally signed by at least one board member before it is deemed submitted. MTA access‑rights setup – 3‑minute video This guide is for general information only and does not constitute legal advice. Procedures may change – always refer to the latest instructions on the official websites of the MTA and the Business Register. Keeping your residence information up to date in the Population Register is a legal obligation. To register your residence in Estonia, you must submit a notice of residence to the city or rural municipality government of your place of residence. This ensures that your address is correctly recorded in the Estonian Population Register, as required by law. You can submit your notice of residence in the following ways: The notice of residence form (printable and digital versions) is available on the Ministry of the Interior’s website. If you have multiple permanent addresses, one must be designated as your main residence—the address with legal effect in the register. Other addresses may be submitted as additional residences, but the main one must always be accurate and up to date. Whenever you move within Estonia, relocate abroad, or return from abroad, you are legally obligated to update your residence address in the Population Register. According to Estonian tax law, e-residents are considered non-residents for tax purposes. This means that only income earned in Estonia is taxed in Estonia. If there is no Estonian-sourced income or activity, you must pay taxes in the country where the service is provided or the income is earned. E-Residency alone does not create tax residency—neither in Estonia nor elsewhere. An Estonian company established by an e-resident is automatically considered an Estonian tax resident company, and subject to Estonian corporate tax rules. However, the personal tax residency of the e-resident does not change simply because they hold an e-Residency card. It’s a common misconception that e-Residency provides residency or tax residency status—it does not. E-Residency is a digital identity, not a visa, residence permit, or travel document. It allows you to manage a company remotely, but it has no impact on where you pay personal taxes. Keep in mind: Your personal tax residency is determined by factors such as physical presence (e.g. more than 183 days in a country) and centre of economic or personal interests. Your personal tax residency may also trigger permanent establishment rules, which could lead to tax obligations for your Estonian company in your country of residence. Lead-in: To do so, the company must submit a VAT registration application along with an extract from the commercial register of its home country. The application must include a clear explanation of the company’s business activities and their connection to Estonia—for example, the sale of goods or services in Estonia, or having a fixed establishment or taxable presence. Documents can be submitted in one of the following ways: By a legal representative or By an authorised person holding a notarial power of attorney, either: in person at the Estonian Tax and Customs Board (ETCB) service office, by post, if the signature is notarised, or by e-mail to emta@emta.ee with a valid digital signature (e.g. Estonian ID-card, e-Residency, Smart-ID). Once approved, the company will receive an Estonian VAT number and must comply with local VAT rules, including invoicing, reporting, and periodic declarations. To do so, the company must submit a VAT registration application along with an extract from the commercial register of its home country. The application must include a clear explanation of the company’s business activities and their connection to Estonia—for example, the sale of goods or services in Estonia, or having a fixed establishment or taxable presence. Documents can be submitted in one of the following ways: By a legal representative or By an authorised person holding a notarial power of attorney, either: in person at the Estonian Tax and Customs Board (ETCB) service office, by post, if the signature is notarised, or by e-mail to emta@emta.ee with a valid digital signature (e.g. Estonian ID-card, e-Residency, Smart-ID). Once approved, the company will receive an Estonian VAT number and must comply with local VAT rules, including invoicing, reporting, and periodic declarations.
Accounting (1)
(If you prefer a video, see the MTA walkthrough at the end of this article.)1. Give an accountant access in the MTA self‑service
• The board member has an Estonian ID‑card, Mobile‑ID or e‑Residency digital ID.
• You know the accountant’s Estonian personal identification code (isikukood).Step‑by‑step
2. Authorise the accountant in the Business Register (for the annual report)
3. Video tutorial
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Company formation (1)
Estonia’s tax framework is renowned for its simplicity and growth-friendly incentives.
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General (3)
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Multiple residences
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Clarifying taxation rules for e-residents and Estonian companies.
E-Residency gives you access to Estonia’s digital business environment—but it has no effect on your personal or corporate tax residency, which are determined by entirely separate legal criteria. 1
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Taxis in Estonia (11)
Understand the rules before distributing profit.
Taxation of Dividends in Estonia
Reduced 14% Corporate Income Tax Rate
Summary:
Paying dividends in Estonia is tax-efficient, but subject to strict timing and compliance rules. If you’re considering using the reduced tax rate, we strongly recommend consulting with an accountant to ensure you meet all conditions. 2
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For digital services sold across the EU.
Key conditions and obligations:
MOSS helps VAT-registered companies save time and avoid multiple VAT registrations across the EU—but only applies to digital B2C services. 0
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Estonia’s tax framework is renowned for its simplicity and growth-friendly incentives.
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(If you prefer a video, see the MTA walkthrough at the end of this article.)1. Give an accountant access in the MTA self‑service
• The board member has an Estonian ID‑card, Mobile‑ID or e‑Residency digital ID.
• You know the accountant’s Estonian personal identification code (isikukood).Step‑by‑step
2. Authorise the accountant in the Business Register (for the annual report)
3. Video tutorial
3
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Multiple residences
2
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Clarifying taxation rules for e-residents and Estonian companies.
E-Residency gives you access to Estonia’s digital business environment—but it has no effect on your personal or corporate tax residency, which are determined by entirely separate legal criteria. 1
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Yes, a foreign company can register for VAT in Estonia.
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VAT number (1)
Yes, a foreign company can register for VAT in Estonia.
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English 
Estonian