Working under the table will become legal in Estonia!
Working under the table i.e. doing small jobs as a private person? From 2018, it’s possible to pay income tax from odd jobs legally and conveniently!
Starting from 1.01.2018 a new so-called unreported employment tax law will take effect. It essentially means that income declarations will become less bureaucratic and all you need to have is a separate business bank account. The communication between the bank and the Tax and Customs Board will make sure that the correct amount is withheld from said account. Even though a business account can be opened by a person who hasn’t registered as a self-employed person, they should keep in mind the following:
- tax rate for yearly income up to 25 000 euros is 20%;
- tax rate for yearly income up between 25 000 – 40 000 euros is 40%;
- according to the VAT law that will take effect on 1.01.2018, if your yearly income surpasses 40 000 euros, you must register yourself as a VAT payer;
- to receive health insurance, the monthly income on your business account must be at least 1300 €.
If you want to “come out” with your business, you should consider the potential profit and which business models suit you best.
NJORD’s Partner and Attorney at Law Anne Veerpalu and Lawyer Anne-Lii Kask will advise you on further questions related to business accounts and choosing a business model.
NJORD Estonia: Four options to employ additional labour for the holidays
The holiday season is often accompanied by a shortage of own personnel. Due to an increase in shopping activity, additional labour must be hired, e.g. by shops and manufacturing companies. Based on the rules of working and rest time, the existing employees cannot perform the extra work related to the temporary increase in workload. There are four options to solve the situation.
NJORD Latvia: Money laundering cases and practice
According to the information provided by the Financial Intelligence Service (FID), 102 criminal cases involving money laundering were initiated in the first half of this year. Of these, 55% referred to autonomous money laundering offenses. As a consequence, the FID issued 159 freezing orders of €104.8 million of alleged proceeds. This sum already exceeds that of all of 2018, when assets totaling €101.5 million were frozen. By the end of this year, the FID has plans to freeze a further €200 million.
NJORD Estonia: The use of AI in dermatology and skincare
AI is believed to have great potential in the field of dermatology and skincare. Currently, different solutions are being developed in order to personalise skincare for people. For example, algorithms can be developed, which make use of computer vision and machine learning in order to help people find the right skincare treatments for them. There are two ways how AI is used for this. First, it is possible to develop computer and mobile applications, which analyse the skin of a person based on the person’s selfie. The application analyses, what the person’s skin type is and what kind of products or treatments the person should use.