When an Estonian private limited company (OÜ) buys from, sells to or lends to a company of its own group, a shareholder or another associated person, the price has to be what independent parties would agree. This article explains who counts as an associated person in Estonia, what happens when a price is not at market value, and why the company keeps documentation of these transactions — and what our documentation service prepares.
The article is general information, not tax advice. Whether a price is at market value is assessed by the Tax and Customs Board on the facts of the case.
Who is an associated person
Persons are associated if they have a common economic interest or if one has dominant influence over the other (Income Tax Act § 8(1)). In any event they include, among others, companies of one group within the meaning of Commercial Code § 6, a company and a person holding at least 10% of its share capital, votes or profit rights, and legal persons more than 50% of which is held by the same person or associated persons (Income Tax Act § 8(1) clauses 2, 3 and 5).
The market value rule
- Companies. If the price of a transaction between a resident legal person and an associated person differs from the market value, income tax is charged on the amount the taxpayer would have received as income, or would not have incurred as expenses, at a market price (Income Tax Act § 50(4)).
- Sole proprietors. The same rule applies to a sole proprietor's transactions with associated persons (§ 14(7)).
- Methods. The methods for determining the market value are set by a regulation of the minister in charge of the policy sector (§ 50(8) and § 14(8)).
What the Tax and Customs Board may ask for
To apply the market value rule, the Tax and Customs Board may ask a resident company for additional information on its transactions with associated persons, on the activities of the companies of its group and on the structure of the group, and must give it at least 60 days to submit it (Income Tax Act § 50(7)). Documentation prepared from the company's records before such a request makes the answer a matter of handing over a file rather than rebuilding it under a deadline.
What we prepare
The service Transfer pricing documentation for an Estonian company, from from €2,900, documents the company's existing transactions with related persons from its records: a list of the transactions, the description of the group, the transactions and the functions, the method chosen and the comparison of the prices with the market, delivered as a file for the company's records. The starting price is for one company and up to five types of transaction; more work is agreed in writing before it starts.
- Not included: tax advice, changing the prices of past transactions, and representation before the Tax and Customs Board.
- Who decides: the Tax and Customs Board assesses the prices.
Setting up the group itself? See An Estonian company in an international group.
Prices exclude VAT. All communication takes place by email.
Ready to start? Documentation of the company's existing transactions with related persons, from its records; not tax advice. Order.
Official sources
The laws this article names, by the name of their official text, as read on 9 October 2026. For the Estonian acts we read the English translation in Riigi Teataja; the legally binding text is the Estonian one.
- Income Tax Act — Riigi Teataja, English translation
- Commercial Code — Riigi Teataja, English translation
Sources are named in the text, without links. To see which of our services your company needs, open the Business Navigator.