ettevõtluskontod

ettevõtluskontod, which translates to "entrepreneurship accounts" or "business accounts" in English, are a specific type of bank account designed for individuals and small businesses in Estonia. These accounts are intended to simplify the process of conducting business activities for sole proprietors and micro-enterprises by offering a combined solution for managing income, expenses, and tax payments.

The primary purpose of ettevõtluskontod is to facilitate compliance with Estonian tax regulations for individuals who are engaged in entrepreneurial activities but do not necessarily operate as a registered company. They allow for the direct receipt of business income and the deduction of eligible business expenses. A key feature is the automatic calculation and withholding of income tax and social security contributions on the net profit.

This system aims to reduce administrative burdens for small-scale entrepreneurs, such as freelancers, service providers, and those operating in the gig economy. Instead of needing to establish a formal company structure and manage separate tax declarations, individuals can utilize these specialized accounts. The bank typically handles the tax remittances to the Estonian Tax and Customs Board on behalf of the account holder.

While ettevõtluskontod offer convenience, there are often limits on the annual turnover or the types of business activities that can be conducted through them. They are generally best suited for low-volume, straightforward business operations. It is advisable for potential users to consult with their chosen bank and the Estonian Tax and Customs Board to understand the specific terms, conditions, and limitations associated with these accounts.