An e-resident’s company is based in one country, whilst they live in another. Therefore, the accounting for an Estonian OÜ involves more than just the KMD and the annual report. It also involves directors’ remuneration, which is taxed in Estonia; dividends, which are taxed at the place of residence; and the question of where the company is actually managed.
Most online services handle the first half of the task: a low-cost package, an app for receipts, and automatic filing of returns. The second half — your country’s taxes, transaction limits, and additional charges for each tax return — usually comes to light later and ends up costing more than the difference in the service plan price.
We handle the full accounting for e-resident companies and quote a fixed price that includes all mandatory tax returns – with no additional charges for each submission. We account for transactions via Wise, Revolut, Stripe, Paddle and PayPal, rather than payments. And we prepare financial statements so that they can be attached to your tax return in your country of residence.
| Topic | Practical guidance |
|---|---|
| Who is required to keep records | Every e-resident OÜ – from the date of registration, regardless of turnover |
| Annual report | Annually, including years with no turnover; signed personally by a member of the management board using a digital signature |
| Management board remuneration | Taxable in Estonia: 22% income tax and 33% social security contributions, even if you live abroad |
| Dividends | The company pays 22/78; there is no withholding tax in Estonia for non-resident individuals; tax is payable at your place of residence in accordance with your country’s rules |
| VAT registration | From August 2025 – only if there is an economic link with Estonia; threshold €40,000 |
| VAT for limited liability companies | Arises when purchasing services from foreign suppliers – no threshold |
| TSD return | By the 10th of the month — in months when payments are made to individuals and profits are distributed |
| KMD return and VD report | By the 20th — where VAT-registered and for B2B supplies within the EU |
| Language and currency | Accounting in euros; documents accepted in any language |
| Accountant’s access | A board member grants access rights in e-MTA; there is no need to provide an ID card or PIN codes |
| Document retention | 7 years in accordance with the Accounting Act |
If you have any questions, our experts are always on hand. Send us your registration code and we’ll check your company’s details against the register free of charge and let you know what action needs to be taken now.
In the accounting market for e-residents, advertised prices start at around €29 per month, whilst comparable services from different providers can cost up to €150 or more. The difference is almost never down to quality — it lies in what is included in the price. Don’t compare price plans; instead, compare these three things:
| How the price is structured | What happens in practice |
|---|---|
| Transaction limits in the pricing plan | The basic plan covers a few sales and a dozen or so bank transactions per month. Subscriptions, Stripe payments and small expenses quickly push you over the limit |
| A fee for each tax return | The plan is cheap, but each KMD or TSD submission is charged separately. With monthly VAT returns, the cheap plan ends up being expensive |
| VAT and OSS as an additional option | Accounting without VAT is included in the basic price; VAT reporting is included in the next pricing tier. A company that becomes a VAT-registered business automatically moves to a different pricing tier |
| Annual report charged separately | The monthly price is low, but the annual report is invoiced separately |
Practical advice: ask your provider to calculate the annual cost based on your figures – number of transactions, VAT status, payments to the board, and dividends. We quote this amount straight away, and all mandatory returns are already factored into it.
An Estonian accountant who only considers Estonia overlooks half the risks. The other half lies in the country where you live.
We do not replace your tax adviser in your country, but we prepare the figures and documents so that they do not need to be reworked. If a risk assessment is required, we can arrange for tax consultancy services.
The accountant works in e-MTA using access rights issued to them online by a member of the board. The bank grants read-only access or the ability to download statements. It is neither necessary nor permitted to pass on an e-resident’s card, PIN codes or passwords — this breaches the rules governing the use of digital signatures.
The accountant submits the TSD and KMD declarations using the granted access rights. The annual report is signed by a board member personally using their digital signature — this is the board’s responsibility, which cannot be passed on to the accountant. We prepare the report in full; all you need to do is check and sign it.
Most e-residents have several accounts: Wise with balances in different currencies, Revolut, Stripe or Paddle for payments, and sometimes PayPal. Each transaction is converted into euros at the exchange rate on the date of the transaction. Payments from payment services are net of fees and refunds, so revenue is recognised on a transaction basis, whilst fees are recorded as expenses.
A company’s expenses are those related to its business activities and supported by documentation. A laptop for work, software, advertising, and contractors’ services — yes. Personal purchases, rent payments for a flat without a contract with the company, and travel not for business purposes are expenses not related to the business. The company pays tax at a rate of 22/78 on these.
| Topic | Rate or deadline |
|---|---|
| Profit tax | 0% on undistributed profits; 22/78 upon distribution |
| Board remuneration | 22% income tax and 33% social security contributions |
| VAT | 24%; threshold of €40,000 of Estonian taxable supplies |
| TSD | By the 10th of each month — for payments |
| KMD and VD | Monthly by the 20th — for VAT-registered businesses |
| OSS | Quarterly — for sales to consumers in the EU |
| Annual return | Within 6 months of the end of the financial year, usually by 30 June |
We tailor the accounting to your actual business model, as this is what determines whether the bank, the EMTA or your country’s tax authorities will raise any queries.
Please provide your company’s registration number, country of residence, VAT status, banks and payment services, and the approximate number of documents per month. We will get back to you within one working day with an annual quote that already includes all mandatory declarations.
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