Estonia to transition to data-driven state reporting

Estonia is transitioning toward data-driven reporting, a move that will simplify how businesses submit information to the state. Aleksandr Beloussov, head of the zero reporting team at the Centre of Registers and Information Systems (RIK), emphasized at the Pärnu Accounting Conference that entrepreneurs should prepare for this shift immediately.

Starting October 1, 2026, the process for submitting salary payment data for income and social tax declarations (TSD) will change. This update will allow businesses to transmit necessary data directly from their economic software to the Estonian Tax and Customs Board (MTA). Külli Külm-Kivistik, service manager at the MTA, noted that this transition from declaration-based to data-based reporting represents a significant shift for accountants.

Additionally, the European Union's pay transparency directive is expected to influence how employers manage salary structures, prompting experts to advise businesses to review their current systems to ensure compliance and transparency.