Obligation to keep accounts and to keep records

(1) A taxable person shall keep accounts in the cases and pursuant to the procedure provided for in the Accounting Act.

(2) An Act concerning a tax may prescribe cases where:

1) in addition to keeping accounts, a taxable person must keep records of facts relevant for taxation purposes (hereinafter accounting for taxation purposes);

2) a taxable person who is not required to keep accounts according to the Accounting Act must keep accounts.

(3) The keeping of accounts and accounting for taxation purposes shall be organised in a manner which enables an overview to be obtained within a reasonable period of time of the conduct of transactions and of facts relevant for taxation purposes, including revenue, expenditure, assets and liabilities.

(4) If accounting records or accounting records for taxation purposes are not in Estonian, a tax authority may demand that the relevant documents be translated into Estonian. If little-known abbreviations, symbols or keywords are used in the accounting records or accounting records for taxation purposes or if other circumstances render it difficult to understand the documents, the taxable person is required to submit a list of the abbreviations, symbols and keywords and provide additional explanations if necessary.

(5) Accounting records for taxation purposes shall not be amended in a manner which renders it impossible to determine the original content of the document or the time of amendment thereof.

(6) Records may be kept electronically if it is ensured that documents, including accounting records, created as a result of accounting are preserved for the term specified in § 58 of this Act. In the case of conversion or amendment of electronic documents, the legibility of the initial information shall be ensured. A taxable person who keeps electronic accounts is required, at the request of a tax authority, to submit documents created as a result of accounting on paper or in electronic form within a reasonable period of time. Documents shall be legible. The conversion of documents preserved in electronic form into electronic databases allowing access to legible information shall be made possible during the entire term specified in § 58 of this Act.

(6¹) The requirements for the conversion of the documents preserved in electronic form into electronic databases allowing access to legible information shall be established by the regulation of the Minister of Finances.

[RT I, 10.12.2010, 4 - entry into force 01.01.2011]

(7) If a taxable person is required to keep accounts or accounts for taxation purposes pursuant to the procedure provided by legislation of a foreign state due to conducting economic activities in the foreign state and if, as a result of the economic activities conducted in the foreign state, a tax liability arises in Estonia and accounts or other records have been kept in accordance with the requirements established by the legislation of the state concerned, the results thereof shall be taken into consideration upon taxation.

(8) The requirements provided for in this section also apply to taxable persons who are not required by law to keep accounts or accounts for taxation purposes but who voluntarily keep accounts or accounts for taxation purposes.

[RT I 2005, 25, 193 - entry into force 01.07.2005]