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Submission of income tax returns for 2016

An income tax return is submitted from 15 February to 31 March 2017.

Resident natural persons (hereinafter persons) submit income tax returns on their income received during the previous calendar year.

A person is a resident if his or her permanent place of residence is in Estonia, or he or she stays in Estonia for at least 183 days in the period of 12 consecutive months. Estonian state public servants who are in foreign services are also residents. A person is deemed to be a resident from the date of his or her arrival in Estonia. A natural person shall inform the tax authority of the circumstances concerning the change of residency and shall fill in Form R (Application form for determination of residency).

Who is required to submit a tax return
Important dates for persons submitting income tax returns
Pre-completed tax returns
Submission of joint income tax returns
Different ways of submission income tax returns
Submission of additional documents
If you need any assistance
 

Who is required to submit a tax return


Submission of income tax return is obligatory for the following persons:
  • sole proprietors (in addition to the basic form of an income tax return (form A) they must submit an income tax return on business income (form E));
  • persons who in the period of taxation had shares, votes or rights to the profits of a legal person located in a low tax rate territory (in addition to the basic form of an income tax return the form MM or Annex of the form MM must be submitted, irrespective of the fact whether the referred legal person received any income at all or not);
  • persons who received income (incl. dividends) from abroad. Both, income from employment and dividends taxable in Estonia and also income, which in accordance with the international agreements is not taxed in Estonia, must be declared. This applies also in respect of pensioners of the neighbouring countries who live permanently in Estonia and have become Estonian residents;
  • persons whose loss upon transfer of securities is bigger than gains derived from transfer of securities in the period of taxation and who wish to deduct the amount by which the loss exceeds the gains from the gains received from transfer of securities in subsequent periods of taxation;
  • persons who have made contributions to or disbursements from the investment account referred to in § 172 of the Income Tax Act.
Submission of a tax return is not required, if:
  • a person's income is not subject to additional income tax (except some special cases);
  • a person's total income did not exceed the basic exemption of 2040 euros;
  • a person received only a pension paid by an Act of the state which is a Contracting Party to the European Economic Area Agreement (incl. Estonia), a mandatory funded pension provided for in legislation of such state, or a pension arising from a social security agreement if the amount of a pension did not exceed the increased basic exemption of 2700 euros, or if the prescribed amount of income tax on a pension has been withheld and an additional amount of tax is not required. In the event of increased basic exemption on a pension (2700 euros) the general basic exemption in the amount of 2040 euros will be added;
  • a person received only a compensation for an accident at work or an occupational disease which did not exceed 768 euros, or, if the income tax on benefits in the amount prescribed by legislation has been withheld and the payment of any additional amount is not required.
Submission of an income tax return to benefit from tax incentives
  • If a person is not obliged to declare his or her income, but he or she wants to have deductions (has paid the training expenses, housing loan interests etc.), then an income tax return must be submitted.
  • If a resident natural person of another state of the Contracting Party to the EEA Agreement has received income taxable in Estonia in 2016, then he or she can take into account tax incentives (including the basic exemption) in proportion to the share of the income taxable in Estonia in his or her taxable income for the period of taxation on the following conditions:
    • if the person has received at least 75 per cent of his or her total income in Estonia, he or she can use all the deductions provided for in Chapter 4 of the Income Tax Act.
    • if the person has received less than 75 per cent of his or her total income in Estonia, he or she can use, as deductions, the basic exemption and the increased basic exemption in the event of pension, in the case the person receives pension payments.

For that purpose he or she has to submit an income tax return for resident natural person.
 

Important dates for persons submitting income tax returns
 

8–10 February An opportunity to see in the e-Tax Board/e-Customs the pre-completed data on your tax return.
15 February Submission of income tax returns through the e-Tax Board/e-Customs available. Service bureaus start to issue printouts of the pre-completed income tax returns.
28 February Commencement of refund of income tax to customers who submitted their tax returns through the e-Tax Board/e-Customs.
31 March Deadline for submission of income tax returns.
20 March Commencement of refund of income tax to customers who submitted their tax returns on paper.
3 July Term for payment of additional income tax and refund of overpaid amount of income tax.
2 October Due dates of payment of additional amounts of income tax and of refund of overpaid amounts of income tax, if business income, gains from transfer of property or income derived in a foreign country is declared. Also a non-resident who declared deductions in Estonia.

Pre-completed tax returns


The income tax return is pre-filled. It means that information on a taxpayer and his/her income and expenses that is available in the Estonian Tax and Customs Board’s databases has been entered into the income tax return. Pre-filled income tax returns can be submitted in the e-Tax Board/e-Customs or requested in any service bureau of the Estonian Tax and Customs Board.

Data entered into a pre-filled income tax return include:
  • address of a taxable person in the population register;
  • bank account number and the bank account owner's name;
  • employer's information relevant to calculation of income tax (payments subject to income tax and income tax withheld, unemployment insurance premiums, contributions to a funded pension, etc.);
  • benefits for temporary incapacity for work (sickness pay);
  • pensions
  • training expenses paid;
  • gifts, donations
  • pension insurance contributions and payments made;
  • data of the Estonian Central Register of Securities on the transactions in transfer of securities (except the acquisition costs of securities transferred and the sales prices in relation to transfers);
Not pre-filled are:
  • data on income received from a foreign country and expenses (tax incentives) paid in another member state of the European Economic Area, which can be deducted from taxable income;
  • data on the transfer of other property;
  • Form E on business income of a resident natural person.

These data have to be added into the tax return by a taxpayer.

Reviewing pre-filled data in the e-Tax Board/e-Customs

From 8 to 10 February taxpayers can review their data on income and expenses submitted to the Tax and Customs Board by the payers (employers etc) and the recipients of expense (educational and training institutions, credit institutions etc), which will be entered into pre-filled income tax returns by the Estonian Tax and Customs Board.

If any data are missing or differ from those known to the taxpayer, the latter has to contact the payers or recipients of expense and ask them to submit the respective data to the Tax and Customs Board or amend the submitted data.
 

Submission of joint income tax returns


A joint income tax return may be submitted if the persons were married to each other as at the last day of the period of taxation. Separate tax returns of spouses are deemed to be a joint tax return if both tax returns bear a notice that the spouses are submitting a joint income tax return.

If one of the spouses dies during the period of taxation or after that but before the submission of the tax return, the widowed spouse may also submit a joint income tax return.

A joint income tax return can also be submitted, if:

  • one spouse is a resident in Estonia and the other is a resident of another state of the Contracting State to the EEA Agreement as provided for in § 311 (2) or (3) of the Income Tax Act
  • both spouses are residents of another state of the Contracting party to the EEA Agreement whose total income meets the terms provided for in § 311 (2) or (3) of the Income Tax Act

Different ways of submission income tax returns

In the e-Tax Board/e-Customs

Entry in the e-Tax Board/e-Customs:
  • with ID card
  • with mobile ID
  • via Internet bank – all customers of SEB Bank, Swedbank, Danske Bank, Nordea Bank, Krediidipank (Credit Bank), LHV and Versobank who have concluded an agreement for use of the e-Tax Board/e-Customs through their internet bank

Filling in the income tax return: the fields of the tax return must be filled in Estonian irrespective of the language of environment (Estonian, Russian or English).

Information on the status of the income tax return appears on your personal income tax return information page.

If a tax return needs further verification as a result of the provisional checking, you will receive a notice thereof, and in most cases also guidance for further action, on your income tax return information page.

Submission of an income tax return by a smart phone
In a smart phone
  • you can submit a single tax return pre-filled by the Estonian Tax and Customs Board (i.e. a joint income tax return of spouses cannot be submitted by smart devices);
  • when logging in you have to choose a smart version in the e-Tax Board/e-Customs
  • further in a smart phone version you can add and change only contact details and bank account number for the income tax to be refunded.

The smart phone version cannot be used in the following cases:

  • you wish to use an increased basic exemption in the case of minor children;
  • you must submit a business income tax return (Form E);
  • your entire income has not been entered into the pre-filled income tax return;
  • you received income outside Estonia;
  • you declare gains or loss from the transfer of property
  • you declare the transfer of the right to cut standing crop and felled timber;
  • you use an investment account.

In a service bureau

When submitting a tax return in a service bureau you have three options:

1. pre-filled income tax return

​Printouts of pre-filled income tax returns are issued to customers against identity documents in the service bureaus from 15 February. If you take a pre-filled tax return from a service bureau, please submit the same tax return after supplementing or amending and signing it. When issuing a pre-filled income tax return to a representative of a taxpayer, a notarised consent in writing should be submitted to a service bureau, where the taxpayer indicates the particulars which may be disclosed (§ 27 and § 30 of the Statutes of maintenance of the register of taxable persons). Also an authorisation document certified by the rural municipality secretary or city secretary is acceptable.

A taxpayer is obliged to check the accuracy of information entered into the tax return. If the information is not correct or insufficient, the taxpayer has to make respective amendments and/or supplements on the tax return and confirm the information with his/her signature. If a taxpayer has received income that is not included on the pre-filled tax return, he/she must declare this income as well.

If a tax return is checked and signed you have the following options:

  • give the tax return to an official in a service bureau
  • drop the tax return into a mail box set up for this purpose in a service bureau
2. paper tax returns without pre-filled data

Blank tax return forms without any pre-filled data are available in the service bureaus and at the webpage "Tax return forms".

3. client’s computer in a service bureau

In each service bureau there is a computer at your disposal for filling in tax returns through the e-Tax Board/e-Customs. A service bureau official is there for your assistance.

By post

Income tax returns can be sent to the service bureaus of the Estonian Tax and Customs Board by post.
The addresses of the service bureaus »

Submission of additional documents


Supporting documents on which deductions from taxable income are based need not be submitted with the tax return. Should the need arise for any specifications of declared data or submission of additional documents, an official will contact a taxpayer either by phone, e-mail or by post 10 days before the deadline of the refund of income tax.

Additional documents (certificates of training expenses or the receipt of the payment of housing loan interest, certificate for payments made – Form TSM etc), which the Estonian Tax and Customs Board needs for verification of data can be:

  • electronically submitted through the e-Tax Board/e-Customs on your income tax return information page;
  • delivered in person or by post to a service bureau of the Estonian Tax and Customs Board, where in case of need a copy is made of the document;
  • sent by e-mail digitally signed.
     

If you need any assistance

  • please call us on the following numbers
    • 880 0810 or 1811 – questions concerning declaration, assistance by completing both the income tax returns on paper or through electronic means
    • 880 0811 – information on taxation of natural persons
    • Skype mta.eesti
  • Send an e-mail: fyysisik@emta.ee or a message in the e-Tax Board/e-Customs under the heading "Messages to ETCB".

 

19.01.2017