Author: DMITRI SCHMIDT

From 1 January 2026, the rules in Estonia changed that many Russian speakers refer to as an “income tax exemption.” It’s important to understand that in most cases this is not a full exemption, but the tax-free allowance (maksuvaba tulu) — the part of income from which income tax is not withheld.

From 1 January 2026, Estonia will completely change the way the tax-free basic allowance for personal income tax works. The so-called “tax hump” (Estonian: maksuküür), under which the amount of the tax-free allowance depended on annual income and gradually tapered down to zero, will be abolished. Instead, a single tax-free allowance of €700 per month (€8,400 per year) will be introduced for all working tax residents.

In Estonia, employers can support employees’ health and fitness tax-free, up to €400 per employee per calendar year VAT included.

At AccRes Nola, we value transparency — not only in accounting, but also in how our own processes are organized. Filing the annual report is an important milestone for every Estonian company, and we would like to share our results for the 2024 financial year.

In today’s global business environment, English often serves as the default language of communication — especially in finance and international reporting. But what happens when your official documents, like annual reports, are prepared in a country where English has no legal status?