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The Digital Operational Resilience Act (DORA), which came into effect on January 17 this year, aims to prevent cyber threats and reduce the impact of incidents on businesses and the broader European financial sector.

Companies are running out of time to start this year’s ESG report process – in fact, a business starting today might not make it in time. “That doesn’t mean they should just forgo submitting a report. It’s worth making the effort and getting at least half of it done,” said Grant Thornton Baltic partner and Head of Audit and Assurance Services Mart Nõmper.

It is becoming more accepted that companies should not only focus on their own main goal – earning a profit – but also consider the environmental and social impact of their activities.

A long-awaited legislative amendment has finally arrived: the thresholds for audit and review obligation will rise by 25%.

The Whistleblower Protection Act, which came into effect on September 1, 2024, protects employees, shareholders, and clients in the event of corporate misconduct, but there is still confusion in certain situations about how to interpret the law precisely.

On December 11 2024, the Parliament of Estonia passed the Defence Tax Act, which will apply to individuals, companies, and non-residents earning taxable income in Estonia.

Whether the 2024 packaging report needs to be audited depends on whether the most recent audited packaging report was for 2020 or 2021.

The details of the defense tax that will take a bite out of corporate profits appear to be rife with inequality and unfairness, and a closer look reveals situations where taxes must be paid by those who haven’t turned an actual profit.

Tax changes that await in 2025 onwards.

Starting 1 January 2024, a global minimum tax obligation is in effect for large multinational enterprise groups with consolidated revenue of more than 750 million euros in European Union member states and many third countries (such as UK, Switzerland, Canada, Australia, Singapore etc.)

On 25 September 2024, the Estonian government submitted a draft law on the defense tax to the Parliament, which introduces a temporary defense tax consisting of three components, including a 2% tax on corporate profits. Most companies will have to pay the defense tax for the first time on 10 September 2026.

Pursuant to amendments that entered into force last year, the Commercial Register can fine or compulsorily dissolve those who are late filing an annual report. Compulsory dissolution can be done if the company lacks registered assets (i.e. no assets evident in the land register, ship register, Commercial Register or Estonian securities register), is not a party to any current judicial proceedings, criminal enforcement proceedings or tax disputes.

The rules on the contact person underwent a facelift as part of company law reform, the majority of the amendments of which came into force on 1 February 2023.

Last year, an amendment to the Commercial Register Act was passed, which meant more fines for companies for the purpose of making the Estonian business environment more transparent.

On 16 April 2024, Parliament adopted legislation allowing those on sick leave for extended periods to continue working under adapted conditions.

Starting on 1 October 2023, amendments come into force under which construction contractors must register the construction site and contracting chain in the Tax and Customs Board’s subcontracting chain and working time information system.