Estonian bank LHV, in cooperation with the Tax and Customs Board, has launched a salary payment service that can be used by entrepreneurs for simultaneous payment of salary and declaration and payment of taxes through the bank’s online system without having to enter the e-Tax Board.
The new service primarily helps small enterprises declare paid salaries easier. When using the salary payment service, the enterprises are in most cases released from the obligation to enter data in different environments, the bank said in a statement.
According to Andres Kitter, LHV’s head of retail banking, the new feature is a unique innovation and a good example of how an open salary infrastructure and innovative public services can help with the everyday operations of an entrepreneur.
“We developed the salary payment solution while taking into consideration the needs of enterprises and prepared a flexible solution,” Kitter said.
The salary payment service can be used for six different payments to a private individual: 1) salary; 2) remuneration of a management board member; 3) remuneration based on a contract under the law of obligations; 4) sick pay; 5) payment of minimum social tax; and 6) payment of a taxable dividend. All other types of payments to employees and payments to non-residents must be declared as before.
The development of the application by the Tax and Customs Board was financed from the European Regional Development Fund.
The cover image is illustrative (courtesy of Tax and Customs Board.)