Estonian tax authorities confirm deposit interest must be recorded on accrual basis, regardless of payment timing.
Accounting Requirement
Entities must accrue interest on deposits according to the accrual principle in accounting records, irrespective of when the interest is actually paid out.
Tax Treatment
The mere accrual of interest does not create an obligation to pay the flat tax on corporate income. Tax liability arises only when the income is realized.
Implementation Guidance
Businesses should ensure proper application of accrual accounting for deposit interest, maintaining accurate records of both accrued amounts and actual payment dates.