PwC Estonia’s tax and accountancy team: key projects in 2021

PwC's tax department assisted Estonian startups and their founders in resolving a wide range of tax issues covering different countries, from issues related to the sale of shares to tax nuances related to the issuance and realization of stock options.

We assisted TextMagic AS, a company providing SMS communication services worldwide, in both Estonian and international tax issues in connection with the company going public.

We advised Apollo Global Management, a US-based international asset management company listed on the New York Stock Exchange, which acquired a majority share in Graanul Invest.

PwC was awarded the Quality Label of a Recognized Accounting Firm. The Estonian Association of Accountants (ERK) quality label highlights the best accounting firms that consistently emphasize high standards of service, on the basis of clearly quantifiable criteria.

In cooperation with PwC Legal, we have advised a number of cryptocurrency companies on tax issues during the year. This is an interesting and challenging area because the tax rules are still evolving

We organized the PwC Financial Conference “Accounting and Taxes in 2022” in November 2021, which was attended by more than 450 people in person and online.

PwC tax experts regularly visit universities and give lectures to students on tax issues. In 2021, Hannes Lentsius spoke to EBS students about the principles of international taxation and related bottlenecks. Martin Lehtis analyzed the current issues of tax and customs law with the students of the Estonian Academy of Security Sciences.

In cooperation with the PwC Estonia transaction team, we advised Estonia's largest food and consumer goods wholesaler and HoReCa supplier AS Kaupmees & KO on the acquisition of its competitor VL Holding OÜ, thus improving its product range and logistics capacity.

We advised on a transaction wherein OÜ Treeland, a subsidiary of OÜ Mirrow Institute, acquired a 51% share in the Latvian restaurant chain Lido.

We helped carry out a major transaction in the Estonian defense industry, advising the German company Krauss-Maffei Wegmann in a transaction wherein they acquired a 24.9% share in Milrem Robotics, one of the flagships of the Estonian defense industry.

We advised the waste management company Ragn-Sells, which acquired Pandipakendi Automatiseeritud Käitlussüsteem OÜ (P.A.K.). As a result of the transaction, the company entered the management business of deposit packaging recycling and cleaning service provision.

PwC is a long-term legal and tax advisor to the Estonian e-residency team. For Estonia's reputation as a successful e-government country and e-residency program, it is very important to maintain a high standard of service and an impeccable background of entrepreneurs providing services to e-residents.

We advised Elektrilevi OÜ, the largest distribution network company in Estonia in a transaction resulting in the acquisition of Imatra Elekter AS, which provides energy services in Western Estonia and Viimsi.

We advised the Finnish healthcare company Mehiläinen, which acquired two Estonian healthcare companies from the private equity fund BaltCap Private Equity Fund II: the occupational health and medical services company Qvalitas Arstikeskus, and the dental chain Unimed Grupp.

We advised BaltCap Private Equity Fund III during the acquisition of a majority share in Baltic Ticket Holdings, a ticket sales chain, which operates in Estonia under the Piletilevi brand. Sven Nuutmann, a co-investor, acquired a minority share in Piletilevi and took over the position of the Chairman of the Management Board of Piletilevi.

In the startup world, stock options play a very important role, but breaking tax rules can lead to high tax costs. We were able to help our long-term customer, Pipedrive, in clarifying tax implications. In monetary terms, it was one of the largest stock options in Estonia.

Our client portfolio includes several companies that produce renewable energy, whose accounting calls for a thorough understanding of national funding terms, drafting the relevant reports, communicating with the public sector, knowing the specifics of recording assets in their accounting system and detailed project accounting.

This year we won a significant number of new clients that operate in the field of cryptocurrency. We became their partner in developing a financial model for recording numerous transactions and resolving tax issues, while both tax rules and accounting policy for this field are only being elaborated.

We did the books for one of Estonia’s biggest residential rental property companies and organised their tax accounting.

In 2021, the number of clients that are audited also grew significantly. On top of providing them the accounting service, we also helped them in communicating with various Big 4 auditors and assisted them in resolving issues arising from the audits.

We have a client whose main task is to provide studies and analyses for the European Commission and whose accounting calls for specific competence – detailed project accounting, guaranteeing compliance with public funding terms, resolving complicated VAT and income tax issues related to several countries and a lot of communication with the public sector.

Contact us

Hannes Lentsius

Hannes Lentsius

Tax Service Line Leader, PwC Estonia

Tel: +372 5691 1698

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