accounting basics for micro-enterprises

A kulu (expense) hits the income statement immediately. A põhivara (fixed asset) appears on the balance sheet and is depreciated. An item becomes a fixed asset when BOTH conditions are met: useful life > 1 year AND cost > the capitalisation threshold (default €1,000; adjustable during the upload step at /upload). General info — consult an accountant.

TSD (payroll/tax declaration) → EMTA, due 10th of each month. KMD (VAT declaration) → EMTA, due 20th (only for VAT-registered businesses, turnover over €40,000/year). Annual report → Äriregister, within 6 months of fiscal year-end. nosweat.finance uses the EMTA Nõuete toimingute otsing report to compute labour costs and tax liabilities, but does not submit TSD or KMD on your behalf.

Computers/phones: 3–5 yr. Furniture: 5–10 yr. Vehicles: 5–8 yr. Software: 3–5 yr. Land is never depreciated. Adjust per asset in /fixed-assets.

TSD declared amounts must match the annual report labour cost line — nosweat.finance auto-checks this via the Nõuete toimingute otsing CSV. KMD turnover and annual report revenue differ (KMD is cash-based and VAT-inclusive; the report is accrual-based and VAT-exclusive). This difference is normal.

RTJ = Estonian accounting standards (Raamatupidamise Toimkonna Juhendid), which supplement the Accounting Act. Key parts for micro-enterprises: RTJ 1 (general framework), RTJ 2 (presentation requirements — covers balance-sheet and P&L form), RTJ 5 (fixed assets + depreciation), RTJ 15 (notes disclosures including related parties). The balance-sheet form is in RPS Annex 1; the P&L forms are in RPS Annex 2. Micro-enterprises (on the balance-sheet date at least two of three not exceeded: income ≤€900k, assets ≤€450k, average employees ≤10) qualify for the simplified format — what this app generates. General info, not specific advice — consult an accountant for your situation.

The app and chat assistant do not give tax advice. They explain accounting terms, help you use the app, and cite general RTJ rules. They will not advise on your specific tax situation, fill EMTA declarations, or judge whether a specific expense is deductible for your company. For tax advice, consult a sworn auditor or licensed tax adviser. Free general info: EMTA hotline 880 0811.

This app targets simple micro-enterprises (one owner, services or light retail, few accounts). Use an accountant if you exceed micro thresholds, have multiple shareholders with non-trivial dividend rules, operate in multiple countries, sold/bought major fixed assets, are restructuring, or have a loss year you're unsure how to carry forward. Not a substitute for professional advice in complex cases.

nosweat.finance uses straight-line depreciation: Annual depreciation = (Cost − Residual value) / Useful life. Register the asset in /fixed-assets — the app computes depreciation automatically.

RTJ 5 p. 9: below threshold → expense immediately (regardless of useful life). Above threshold AND useful life > 1 year → fixed asset. The threshold is a company policy choice; apply consistently. Adjust during the upload step at /upload.

On /fixed-assets, each fixed-asset sale that arrived as a bank transaction is resolved separately. From the dropdown, choose which asset was sold — either a fixed asset listed there (a current-year acquisition or an asset carried over from the prior year; picking it marks that asset as disposed and links the transaction) or from the Äriregister bulk value (if the sold asset isn't itemised separately — enter the disposed portion's carrying value manually). In simplified mode you likewise enter a carrying value for each sale transaction. If a disposal brought in no money (a write-off), mark it on the asset row with the "mark as sold / written off" tick-box. The app calculates gain (Muud äritulud) or loss (Muud ärikulud) as proceeds minus carrying value (RTJ 5 §6.5). Write-off at €0 proceeds → the entire carrying value goes to Muud ärikulud.

It depends on two conditions — the law sets no fixed euro amount: (1) the useful life is over 1 year, and (2) the cost exceeds your company's own capitalisation (materiality) threshold, which you set in your accounting policy. There is no statutory figure — a company may set it at, say, €500, €1000, or €5000. If both hold → fixed asset (capitalised and depreciated over its life); below your threshold → expensed immediately. A laptop typically lasts 3–5 years, so whether it's a fixed asset depends solely on whether its price exceeds your chosen threshold. nosweat uses €1000 as a default only when you haven't set your own — enter your own threshold during the upload step (/upload).

Form TSD is filed and the taxes paid by the 10th day of the month following the month of payment.

What matters is the month the payment is made, not the month the pay is for. December pay paid out in January goes on the January form and is taxed at January's rates.

The same date covers every part of TSD annex 1 — income tax, social tax, unemployment insurance and the funded pension contribution.

The amounts themselves come from the TSD annex 1 helper — enter the gross amount and it calculates every figure that belongs on the form.

Social tax has a monthly rate, which in 2026 is 886 euros. That gives a minimum obligation of 292.38 euros a month (886 × 33%). Where the employer has an obligation to pay social tax on at least the monthly rate for that person, but the actual payout is smaller, social tax is still owed up to the minimum.

The obligation does not always apply — it depends on full-time work, several employers, partial work ability, pension age, being a minor, and so on.

The helper does not silently swap the calculated social tax for the minimum. If the calculated figure falls below 292.38 euros, the helper shows both numbers and adds a note. You decide which applies.

Where the minimum does apply, the difference is not written onto the social tax line — it is declared under code 1090 ("increase of the payment subject to social tax in connection with the minimum social tax obligation"), and e-MTA computes social tax from that.

The TSD annex 1 helper is a free calculator for the taxes on a single payout. Enter the gross amount, pick the payment type, and you get every number that belongs on the TSD annex 1 form — each one next to its field code (1030, 1060, 1100, 1110, 1120, 1130, 1140, 1160, 1170).

No account and no login. What you type stays in your browser — the calculation runs on your device and nothing is sent to a server.

The helper calculates; it does not file. You enter the numbers into form TSD in e-MTA yourself.

From 2026 the tax-free allowance is 700 euros a month (8400 a year) and no longer depends on income size. Previously it tapered off at higher incomes; from 2026 it is a flat rate for everyone.

For a person of old-age pension age the allowance is 776 euros a month (9312 a year).

The allowance is applied only if the person has filed an application with the employer. Without one, income tax is withheld on the full amount. With several employers, the application can go to one only.

The helper asks for the allowance amount separately, because you are the one who knows whether an application exists and how much of the month's allowance is still unused.

Type 10 is pay from an employment relationship. Income tax, social tax, unemployment insurance on both sides (employee 1.6%, employer 0.8%), and the funded pension contribution if the person is a contributor.

Type 21 is a board member's fee. Income tax, social tax and the funded pension contribution apply — but no unemployment insurance premium on either side. A board member is not an insured person for unemployment insurance purposes.

The helper covers these two types. Other types (fringe benefits, dividends, payments at special rates) are out of scope.

Order matters, because income tax is calculated only after the other withholdings come off.

1. Employee unemployment insurance — 1.6% of gross (type 10; zero for type 21).
2. Funded pension contribution — 2%, 4% or 6% of gross, per the person's own election.
3. Tax-free allowance — subtracted if an application has been filed.
4. Income tax — 22% of what is left after the three steps above.

Net = gross − unemployment insurance − pension contribution − income tax.

Employer taxes are calculated separately, on the gross, and are not deducted from the employee's pay: social tax 33% and employer unemployment insurance 0.8% (type 10).

Every intermediate figure is rounded down to the cent.

The TSD annex 1 helper runs these steps on a concrete gross amount and shows every intermediate figure separately.