Short-term statistics of enterprises

Turnover of enterprises

Labour costs of enterprises



Turnover of enterprises

Statistics Estonia publishes short-term statistics on the turnover of enterprises. The interactive charts provide an overview of the situation of enterprises on the basis of VAT returns. The statistics cover companies liable to VAT and self-employed persons who have submitted a VAT return.

Data are presented for three time periods. The longest time series start in 2005 and also cover the previous economic crisis. The shorter time series show changes since 2017, and in the case of municipalities, since 2018.

The chart compares the monthly turnover of four years based on VAT returns (form KMD).

 

Economic activity

The chart shows the monthly VAT-based turnover by the main activity of the enterprise.

 

Number of employees in enterprises

The chart shows the VAT-based turnover of enterprises by the number of employees.

 

Municipalities

The chart shows the VAT-based turnover of enterprises at municipal level. When interpreting the results, one should keep in mind that enterprises have been assigned to municipalities on the basis of their registered address. Only enterprises the location of which could be determined at this level were included. The place of business of an enterprise can differ from its registered address. The transactions of single enterprises and, in some cases, of economic activities may significantly influence the indicators (especially for small municipalities). Values that do not meet confidentiality requirements have been removed, and breaks may occur in the time series.

The following chart shows VAT-based turnover of enterprises and its share in the total declared turnover of enterprises in Estonia. The chart also includes the shares of the enterprise and economic activity with the largest turnover.

 

Methodology

The charts are based on the VAT return (form KMD) data of the Tax and Customs Board. Persons liable to VAT submit the tax return by the 20th day of each month for the previous taxation period (month). Transactions and operations subject to VAT are declared on form KMD by tax rates.

The charts show the total declared turnover of enterprises, with tax rates 20%, 9% and 0% for the sum of taxable operations and transactions (total of rows 1, 2 and 3).

Companies and self-employed persons liable to VAT are covered.

The differences between the declared ‘VAT-based turnover’ and ‘turnover’ submitted to Statistics Estonia are the following:

  1. turnover does not include sold fixed assets;
  2. turnover does not include excise;
  3. turnover does not include prepayments;
  4. turnover assessment is also calculated for small enterprises which are not liable to VAT.


Labour costs of enterprises

Statistics Estonia publishes short-term statistics on the labour costs of enterprises on the basis of income and social tax declaration (form TSD annexes 1, 2 and 4). The statistics cover companies and self-employed persons who have made taxable payments to natural persons. The time series show changes since 2017.

The chart shows the total labour costs and labour costs per employee.

 

Comparison of turnover and labour costs

The charts show the correlation between VAT-based turnover and labour costs, which enables to assess the impact of changes in VAT-based turnover on changes in labour costs.

When assessing the correlations, it should be kept in mind that in the declaration, enterprises record turnover on accrual basis, but labour costs are shown by payment month. Monthly disbursements usually include the wages and salaries for the previous month. Therefore, changes in labour costs become evident with about a month of delay in contrast to changes in VAT-based turnover.

 

Methodology

Labour costs were calculated on the basis of the declarations of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension (form TSD). Legal and natural persons submit form TSD by the 10th day of each month for taxable disbursements made in the previous calendar month.

The charts show the data of companies and self-employed persons who have made taxable disbursements.

Data of annexes 1, 2 and 4 of form TSD have been used.

Annex 1 of form TSD. Payments made to resident natural persons, withheld income tax, contributions to mandatory funded pension and unemployment insurance premiums and calculated social tax and unemployment insurance premiums.

Annex 2 of form TSD. Payments made to non-resident natural and legal persons, withheld income tax and unemployment insurance premiums and calculated social tax and unemployment insurance premiums. Payments made to public limited funds or contractual investment funds and withheld income tax.

Annex 4 of form TSD. Fringe benefits.

Terms used

Labour cost components

Wages and salaries (payment types 10, 11, 12, 13, 15 , 21, 22, 23 of Annex 1 of form TSD and payment types 120, 121, 122, 126, 127, 128, 144, 145, 146, 147, 148, 149, 156, 157 of Annex 2 of form TSD).

Remuneration paid under the Law of Obligations Act – payments made under contract for services or authorisation agreement in accordance with the Law of Obligations Act (payment types 17, 18, 19, 20 of Annex 1 of form TSD and payment types 123, 124, 125 of Annex 2 of form TSD)

Other remuneration – allowances and benefits paid by the employer to the employee and fringe benefits including income tax on fringe benefits.

Allowances and benefits paid by the employer – sickness benefits, benefits for occupational accidents and diseases , pillar III contributions, dismissal benefits, childbirth allowance paid by the employer (payment types 14, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34 of Annex 1 of form TSD and payment types 129, 130, 131, 132, 133, 134, 135, 137, 138, 139, 140, 141, 142, 143, 158, 159 of Annex 2 of form TSD).

Fringe benefits paid by the employer – compensation of housing costs, insurance premiums, compensation of work-related use of private car, compensation of formal education costs, expenditure on employee’ health and other fringe benefits.

Social tax

Unemployment insurance premium paid by the employer

Labour costs (excl. under Law of Obligations Act) – all components of labour costs, excluding remuneration paid under the Law of Obligations Act and the employer’s social tax and unemployment insurance premium paid on this remuneration. Labour costs (excl. under Law of Obligations Act) have been given separately.

When calculating labour costs per employee, persons who work in several enterprises at the same time have been included separately for each enterprise. The size group based on the number of employees and the economic activity of the enterprise were determined on the basis of Statistics Estonia’s business register for statistical purposes in the year of payment.

Labour costs published in Statistics Estonia’s database (statistical activity 21103 Labour costs) differ from the labour costs in the declaration as follows:

  1. Payments in the declaration are cash-based, while for the statistical activity enterprises submit labour costs on accrual basis.
  2. In the declaration it is not possible to indicate separately remuneration paid to members of the controlling body, which is not included in wages and salaries.
  3. In the statistical activity, remuneration paid under the Law of Obligations Act is not taken into account, as persons employed under Law of Obligations Act contracts are internationally considered to be self-employed. For better comparison, labour costs according to the declaration have also been calculated without contracts under the Law of Obligations Act.
  4. Declarations do not include the following major labour cost components: training costs, uniform and recruitment costs.

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