Disclaimer: This material is for general information only and does not constitute tax or employment law advice. Tax consequences depend on the type of contract, the employee’s tax residency and where the work is performed. We review each specific situation individually.
An annual report answers the question ‘how did the past year go?’. Interim reports answer the question ‘where is the company now?’ — and this is precisely the question asked by an investor before a funding round, a bank before granting a loan, shareholders before the distribution of profits, and a buyer before a transaction.
In Estonia, interim reporting is not a regular obligation for most OÜs, so it is often done at the last minute — by exporting data from the accounting software without closing the accounting period. Such a ‘report’ shows the bank balance, but not liabilities, accruals or actual profit. Consequently, decisions based on it turn out to be flawed.
We prepare interim financial statements with a full period-end closing: accruals, depreciation, currency revaluation, and reconciliation with the EMTA and banks. The report is prepared in accordance with Estonian Financial Reporting Standards or IFRS, in Russian, English or Estonian — either as a one-off for a specific date or on a regular basis, monthly or quarterly.
| Topic | Practical guidance |
|---|---|
| Is it mandatory? | For most OÜs – no; mandatory in certain corporate procedures and at the request of investors, banks or the regulator |
| What is included | Balance sheet and profit and loss account; on request – cash flow statement, statement of changes in equity, notes, KPIs |
| Standard | Estonian Financial Reporting Standard (RTJ) or IFRS |
| Net assets | If these fall below half of the equity or the statutory minimum, the members are obliged to take a decision; the registrar may issue a warning |
| Profit distribution | Dividends for an OÜ are distributed in accordance with the approved annual accounts; interim figures are required to verify whether there are sufficient funds and profits |
| Winding up | Liquidation balance sheets and reports are submitted to the registry at the various stages of liquidation |
| Tax on distribution | 22/78 — regardless of the report on which the decision is based |
| Language | Russian, English, Estonian |
| Frequency | One-off on a specific date, monthly, quarterly |
If you require the report by a specific date — for a transaction, a tranche or a shareholders’ meeting — please specify this straight away: we will schedule the period-end closing to meet your deadline.
The reason is almost always external — a decision that cannot be based on last year’s figures.
| The situation | Why is a report needed? |
|---|---|
| Investor or board | Regular reporting under an investment agreement, a report prior to the next tranche |
| Bank or leasing company | Loan application, covenant review, credit facility extension |
| Decision on profit distribution | Check whether there are sufficient funds and distributable profits, and how the payment will affect net assets |
| Check on net assets | Determine whether net assets have fallen below half of the capital or the statutory minimum |
| Increase or decrease in capital | Justify the shareholders’ decision with up-to-date figures |
| Merger, demerger, reorganisation | Balance sheets of the participating companies as at the date agreed in the documents |
| Winding up | Liquidation balance sheets and reports at each stage of the procedure |
| Sale of a company or a shareholding | Due diligence, valuation as at the closing date of the transaction |
| Change of financial year | Transition period report |
| Grants and state support | Reporting on the intended use of funds |
| Group of companies | Consolidation package for the parent company |
For start-ups raising funds, interim reporting is part of their obligations to investors. Find out more about this structure on the start-ups page.
An interim report exported ‘as is’ from an accounting programme almost always gives a distorted picture. The reason lies not with the programme, but with the fact that it does not include period-end closing entries:
Practical conclusion: if a decision is to be made based on the report – such as dividends, a loan or a transaction price – a report covering a closed period is required. The difference between a ‘dump’ and a closed report can sometimes be greater than the entire profit for the quarter.
The Commercial Code requires shareholders to take action if the net assets of an OÜ fall below half of its share capital or below the statutory minimum: to increase or reduce the share capital, take other measures, or wind up the company. If no action is taken, the registry may issue a warning regarding compulsory liquidation.
For loss-making start-ups and companies following large payouts, this is a real risk. Quarterly reports highlight this risk in advance — whilst it is still possible to resolve the issue through a loan, the conversion of a loan into capital, or a capital increase.
The minimum set comprises an interim balance sheet and a profit and loss statement as at the reporting date. For investors and banks, a cash flow statement, a statement of changes in equity and notes to key items are added. The management version includes a breakdown of revenue and expenses by business segment and the KPIs of your business model.
For Estonian recipients — participants, the Register, local banks — the Estonian Financial Reporting Standard (RTJ) is usually sufficient. If the report is intended for a parent company, an international fund or a foreign bank, it is prepared in accordance with IFRS or with a reconciliation table. We will agree on the choice of standard before work begins.
Dividends from an OÜ are distributed in accordance with the approved annual report and the shareholders’ resolution. However, before making a decision, it is worth considering the current situation: is there enough money, will net assets fall below the required level, and will capitalised development costs reduce the distributable profit? The 22/78 tax is payable upon distribution, so a mistake in the decision will cost money straight away. For more details on the tax, see the article Corporate tax in Estonia 2026.
| Situation | Estimated timeframe |
|---|---|
| We handle the accounting; the period is closed | 3–5 working days |
| We handle the accounts; a report with explanations in accordance with IFRS is required | 5–10 working days |
| Accounts are handled by another accountant | Following an assessment of the state of the accounts |
| Regular quarterly reporting | According to an agreed schedule after the end of the quarter |
Please provide the registration code, the report date, the recipient and the relevant standard. We will get back to you within one working day with a turnaround time and a fixed price.
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