Law Firm ALTERNA’s attorney-at-law and partner Annika Vait in cooperation with attorney-at-law Epp Lumiste composed an overview to CEE Legal Matters about positive aspects and downsides of the simplified entrepreneurial income taxation act.
The beforenamed act creates an opportunity for natural persons to easily calculate and pay taxes by opening a separate bank account. Natural persons can set up entrepreneurial income account, where the taxation amount is calculated and transfers are made automatically. Natural persons do not need to physically make or authorize any tax payments transfers.
The entrepreneurial account is definitely an innovative solution in automatic taxation system, though further assessment of this act shows that many downsides arise which could not be noticed at first.
In the overview, Annika and Epp are addressing the user-friendliness of entrepreneurial taxation system, but also point out a few substantial downsides. At one hand, the taxation process will be easier and automatic, but on the other hand, it can be presumed that the entrepreneurial taxation system would not be economically beneficial to most people.
The full overview can be read here: http://ceelegalmatters.com/estonia/7926-simplified-entrepreneurial-income-taxation-act-creates-a-new-and-innovative-taxation-option-in-estonia
Law Firm ALTERNA