Postimees featured a one-cent bill sent by Eesti Energia. Of course, the income from the bill pales in comparison to the direct costs associated with its creation and delivery (paper, envelope, printing, postage). This is a striking example of a paper document that has outlived its time. Yet, incomprehensibly, giving up paper often remains just a mindset. As a first experiment, I recommend trying to get rid of the checks lying around in your wallet. […]
Author Archives: ulvi
The recent Supreme Court ruling in favor of compatriots working in Finland was covered in the media on both sides of the Gulf and sparked a debate about the fairness of wages paid to Estonians. The latter evoked nostalgic memories of a couple of decades of history, when people talked about the incredible hard work, skills, adaptability and a whole chapter of other advantages of the all-powerful Estonian over the spoiled welfare state workers. The result of the measurement depends on the background system “-” Estonians were heroes in the early 90s, […]
The board member contract is essentially an agency contract, which differs from an employment contract legally and also, for example, in terms of taxation. It is worth noting the emergence of health insurance for board members. In terms of taxation, an important difference between the two contracts is the unemployment insurance contribution of 3% of the gross salary. In some cases, unemployment insurance coverage is considered an advantage of an employment contract, which guarantees compensation under certain conditions in the event of termination of the contract. However, the Unemployment Insurance Act excludes insurance for board members. As an exception, […]
As of 01.01.2013, unemployment insurance contribution rates will decrease, which will also change the amount of wages paid. The new employer's unemployment insurance contribution rate is 1% and the insured person's (employee's) unemployment insurance contribution rate is 2%. Thus, the December salary paid at the beginning of the year should please the salary recipient with a larger amount and the employer with a lower cost. However, confusion may arise for employers who have agreed with their employees on the net amount of wages […]
An accurate prediction of tomorrow's winning lottery numbers can bring untold wealth. Similarly, an entrepreneur who understands to spot opportunities in the near future early enough and react to them accordingly rides the wave of success. Accounting, as a central source of information for the operation of a company, can be a useful tool here. For example, we can more accurately calculate the price of a product sold as part of a promotional campaign, which will ensure the most profitable result. A price lower than the optimum would not bring […]
The tax authorities have recently been investigating the connection of the people indicated as users on the company car registration certificate to the company from several entrepreneurs. The question sounds more pointed if the user is, for example, a family member of a board member and the company has not declared the use of the car for non-business purposes. The tax authorities are probably trying to get an answer with this question that confirms the use of the car for non-business purposes. Among other things, this […]
Many people are probably familiar with the wallet full of checks. It may contain documents from your last trip abroad, fuel or restaurant receipts that should one day reach your accountant. It is not easier with personal purchase documents, which must be preserved for up to two years as proof of the warranty of the purchased goods. Yet these pieces of paper are always at hand, and the most necessary things tend to get lost. Moreover: even the largest […]
Since 01.01.2012, the minimum wage for full-time work has been set at 1.80 euros per hour and 290 euros per month. However, the minimum social security tax liability has remained at 91.75 euros per month. As a result, the employer must ensure that the employee receives a salary at least equal to the minimum wage. However, it is worth considering whether to change the remuneration of the board member, which has been paid in the previous year to the minimum wage, or to leave it unchanged […]
As of 01.01.2012, the tax-free limit for accommodation expenses related to business trips was abolished and accommodation expenses were exempted from fringe benefit tax. From now on, accommodation expenses are considered a business-related expense regardless of their amount. It is important to have a correct source document.
As of 01.01.2012, advanced training is no longer considered a special benefit. Advanced training is training that allows you to acquire basic education and general secondary education in the evening or distance learning form or as an external student, to complete vocational training or vocational secondary education part-time, and to acquire higher education part-time or as an external student. Completion of advanced training is evidenced by a certificate or diploma. Tax exemption applies to compensation for advanced training for an employee, civil servant, member of the management board of a legal entity or other non-resident […]
Recently, there have been increasing demands from the tax authorities to treat tax-free daily allowance paid for a foreign mission as taxable wages. The latter may result in additional costs for the company ranging from 75 to 80% of the amount of the daily allowance paid, and in some cases even more. The interpretation of the daily allowance depends on the content of the economic transaction. The basis of this tax claim is the claim that the employee was not on a „business trip“, therefore the payment of tax-free daily allowance is not justified. In this case […]
Tax optimization When evaluating an accountant, tax optimization skills are often speculated upon. Indeed, there are completely legal ways to save on taxes. However, it is extremely difficult for a manager purchasing an accounting service to check this to make sure that the best tax accounting is chosen, to avoid, on the one hand, an excessive tax burden and, on the other hand, unnecessary risk arising from not calculating taxes. Experience An experienced accounting service provider has experience in various business areas. An accountant from such an office […]
Mostly simple Organizing accounting is the responsibility of the management board by law. In the case of small and medium-sized companies, the volume of accounting work may be very small or, at best, barely cover the workload of one accountant. Usually, the accounting of such a company includes a significant part of routine and simple tasks, as well as solving a few complex issues. Understandably, hiring a top-level specialist in such a situation is not justified. […]
Accounting data can be used in many different ways in different companies. In a very small company, all information is only managed by the manager, and loading various reports seems like a waste of time. In other cases, a special data processing program is used for the accounting system, in which all necessary information is stored. However, a large part of the necessary information is generated in the accounting system, so a special data processing program causes […]
Price is important, but what will be more profitable? An important criterion for choosing a writer is hinta. It is sometimes impossible to compare the offers of two accounting offices, and the details offered within the scope of the service require considerable effort. I'll leave it as an alternative to using the accounting service that I discussed in the second post. In addition to the assessment, there is still more. Kunnon kirjanpitäjä is a reliable partner and advisor for every company. […]