Reporting for sole proprietors (FIEs)

Reports to the Tax and Customs Board

Sole proprietors must declare the following to the Tax and Customs Board:

  • personal assets that the sole proprietor uses for business purposes, registering itself in the Commercial Register;
  • four times a year, advance payment of income tax and social tax on business income;
  • once a year, payment of the mandatory funded pension if the sole proprietor has joined the second pillar;
  • assets used for business purposes if it is transferred back into personal use upon suspension or discontinuing of sole proprietor activity.

Sole proprietors do not have to pay unemployment insurance premiums on themselves, but unemployment insurance premiums on sole proprietors’ employees must be paid and declared.

If a sole proprietor is registered as a VAT payer or if the sole proprietor charges VAT on invoices it generates, it must declare and pay VAT to the Tax and Customs Board.

The deadlines for submitting the reports are available in the tax calendar on the website of the Estonian Tax and Customs Board.

Reports to the Health Insurance Fund

As a sole proprietor pays social tax and is entered into the Commercial Register, the sole proprietor has health insurance and has the right to receive compensation for incapacity. In the event of incapacity for work, the sole proprietor must present a certificate of incapacity to the Health Insurance Fund. As an employer, the sole proprietor must register its employees in the employment register.

Last amended: 19-02-2018 11:23 | Compiled by: Tax and Customs Board