Estonia Entrepreneur Account Calculator (Ettevõtluskonto)
Model automated tax deductions for freelancers, platform workers, and micro-entrepreneurs using an LHV Ettevõtluskonto. Calculates 20%/40% tax brackets, social security breakdown, and Tervisekassa health insurance eligibility.
Net Income: €1,600.00 / mo
On €2,000.00 monthly turnover. Flat 20% automated tax (€400.00) transferred directly to EMTA.
⚙️ Revenue & Activity
Total payments received directly into the LHV Entrepreneur Account.
⚠️️ Attention: Estonian corporate clients purchasing services from an entrepreneur account must pay an additional 20/80 CIT (€25 per €100) under TuMS § 50!
🧾 Automatic Tax Allocation Zero Accounting Required
⚖️ Tervisekassa Health Insurance Threshold
To maintain public health insurance via the Entrepreneur Account, your monthly social tax contribution must equal or exceed the monthly minimum (§ 2 Sotsiaalmaksuseadus: €239.25).
Formula: Minimum Monthly Turnover = €239.25 ÷ (0.20 × (20/33)) ≈ €1,973.81 / month.
Frequently Asked Questions (FAQ)
What is an Estonian Entrepreneur Account (Ettevõtluskonto)? +
The Entrepreneur Account (Ettevõtluskonto) is a simplified bank account system opened via LHV Pank in partnership with EMTA. When business payments arrive, taxes are deducted automatically without requiring corporate incorporation, bookkeeping, receipts, or annual financial reporting.
What are the tax rates on an Entrepreneur Account? +
Under the Simplified Business Income Taxation Act, income up to €25,000 per calendar year is taxed at a flat rate of 20%. Any revenue exceeding €25,000 up to €40,000 is taxed at 40%. Once revenue surpasses €40,000, mandatory VAT registration applies, requiring transition to an OÜ or FIE.
Does the Entrepreneur Account provide national health insurance (Tervisekassa)? +
Yes, but only if the social tax portion of the deducted tax meets the statutory monthly minimum social tax base (€239.25). Because 20/33 of the 20% tax constitutes social tax, you need a monthly gross turnover of approximately €1,973.81 to qualify for full state health insurance.
Can an Entrepreneur Account holder deduct business expenses? +
No. The Entrepreneur Account taxes gross turnover. No deductions are allowed for materials, tools, software, or operating costs. If your business model involves significant equipment or raw material costs, an OÜ company structure is far more tax-efficient.
What happens if a company (legal entity) pays an Entrepreneur Account for services? +
Under Tulumaksuseadus § 50, if an Estonian registered company purchases services from an entrepreneur account holder, that company must pay 20/80 corporate income tax on the amount paid. However, if the company purchases tangible goods or merchandise, no extra corporate tax is incurred.
📊 Estonian Tax and Customs Board (Maksu- ja Tolliamet) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (EUR) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 € |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Estonian Digital Governance & Tax Law Principal Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.