To date, 739 thousand tax returns have been submitted to the Estonian Tax and Customs Board (ETCB). Of these, 98 percent were submitted in the e-services environment e-MTA, of which 37 percent were submitted using a smart device. By now, 182 million euros of overpaid income tax has been refunded, 75 million euros is to be paid additionally by taxpayers.
People who have received taxable income must file income tax returns. For example, people who have:
- received remuneration or service fee through a platform from which income tax has not been withheld;
- made transactions with securities or received income from financial assets;
- used an investment account;
- received remuneration or other income in a foreign country;
- sold immovable property or received rental income from which income tax has not been withheld;
- sold felled timber or the right to cut standing crop;
- operated as a self-employed person (FIE).
People who are entitled to an income tax refund are also expected to submit their income tax returns. These are people who have paid training costs, made donations or contributions to the third pension pillar, or used the basic income less than allowed.
Riina Randver-Sõer, service owner at the ETCB, points out that the tax rate in the income tax return of 2024 submitted this year is 20%. “The calculation of the so-called tax hump and the basic exemption did not change last year. This means that the overall basic exemption is up to 7848 euros per year, but it depends on the size of the taxpayer's income. If the annual income is above 25 200 euros, the basic exemption is 0. For people of pensionable age, the basic exemption is 9312 euros per year, regardless of the size of income," said Riina Randver-Sõer.
Compared to previous years, housing loan interest and increased basic exemption for children or spouse can no longer be deducted from last year's income. Training costs, gifts and donations in the extent of up to 1200 euros can still be deducted from income. Contributions to third pension pillar can also be deducted from income in the extent of up to a maximum of 15% of taxable income, but not more than 6000 euros.
If part of the previous year's income is not declared by 30 April at the latest, the ETCB will contact the taxpayer. “If it turns out that part of the income has not been declared, income tax must be paid on the previously undeclared income, to which interest will also be added from October. Therefore, people should already make sure now that all their last year's income has been declared correctly and make corrections to their tax returns, if necessary," said Riina Randver-Sõer.
People whose income tax has been correctly withheld from their income do not have to submit the tax return. People whose income does not exceed the overall basic exemption of 7848 euros or, for people of pensionable age, 9312 euros per year, do not have to declare their income.
The ETCB will refund the overpaid income tax to the bank account specified in the tax return no later than by 1 October 2025. The additional tax amount must be paid by the same date.
