Annual report in Estonia

From this page, we can learn more about the concept of an annual report. In our daily lives, we encounter many questions related to financial periods, and we have gathered more detailed answers to these questions on this page. Among other things, we explain questions about the length of the accounting period and changes in the length of the accounting period.

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The annual report is mandatory for all accounting entities in Estonia and must comply with the legally specified format. The annual report consists of the financial statements and the activity report. The annual report must be submitted even if no activity has taken place.
The accounting period is the specified period from which the financial statements for the past financial year are prepared. The length of the accounting period is usually always 12 months, but under certain conditions, it can be longer or shorter. We will discuss these exceptional cases in more detail in the following sections.

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Here you cand find information about not submitting the annual report.

As we mentioned in the previous chapter, the length of the financial year is mostly 12 months. Usually, this is the calendar year from January 1 to December 31. The company’s articles of association or some other document regulating the activity may specify another fixed date, e.g., September 1 – August 31. When choosing the most appropriate financial year, it should be kept in mind that the selected 12 consecutive months should be chosen so that it is in line with the accounting entity’s operating cycle. To simplify accounting, it is wise to choose the first day of the month as the start of the financial year and the last day of the month as the end (e.g., January 1 – December 31). The accounting period ends on the last day of the accounting period. The length of the company’s financial year can be easily checked directly from the business register.

Previously, we mentioned the possibility of exceptions in the length of the reporting period, and in these cases, the situation is such that the relevant target company either starts or alternatively ceases operations. In such situations, the length of the accounting period may be shorter or longer than 12 months. However, it is important to note that according to the Accounting Act, the maximum length of the accounting period is 18 months. For example, if the company was established on September 10, 2023, and the financial year is chosen as the calendar year, then in this case, the first annual report period can be 10.09.2023 – 31.12.2024. However, if the company was established on May 5, 2023, then the first annual report period would be 05.05.2023 – 31.12.2023.

The annual report must be submitted 6 months after the end of the financial year. The financial year generally lasts 12 months. If it coincides with the calendar year (January 1 – December 31), the report deadline is June 30.
As we mentioned in the previous chapter, the financial year may also be, for example, September 1 – August 31, then the report must be submitted by February 29.
From January 1, 2010, it has been mandatory to submit the annual report electronically via the e-reporting environment.
From January 1, it is possible to prepare the main reports and annexes in the reporting environment, add additional annexes and documents, sign digitally or print out and sign on paper, and it is also possible for the sworn auditor to prepare and confirm the auditor’s report electronically.

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