Estonian entrepreneurs will now be able to simultaneously pay out their salaries, declare and pay taxes in the LHV Internet bank without entering the e-Tax Board/e-Customs.
LHV Bank, in cooperation with the Tax and Customs Board, has developed a Salary Payment service, which can be used by small and medium sized enterprises for the simultaneous payment of salary, declarations and payment of taxes. The new service aims easing the declaration of taxes, by eliminating the need to enter data in different platforms.
The Salary Payment service can be used for six different payments to a private individual:
- remuneration of a management board member
- remuneration based on a contract under the law of obligations
- sick pay
- payment of minimum social tax
- payment of a taxable dividend
All other types of payments to employees and payments to non-residents must be declared as before.
When using the service, the LHV client can determine the respective features of the transfer (e.g. salary payment, rate of working time, calculation of tax-free income) in the Internet bank. The bank sends the source data for taxation to the Tax and Customs Board, who automatically calculates the amount of payable tax based on the person and returns to the bank the information on tax amounts to be paid in such a way that when making the transfer, the client can already see the related tax liability. The tax amount can be paid either immediately together with other payments or at a later date. The payments can be saved for making future salary payments together.
For more information please visit the website of LHV Bank.