On average, 90,000 businesses submit their income and social tax returns (TSD) by the deadline; including those who submit late, a total of 105,000 businesses submit their TSDs on average.
The data-based TSD is the first step towards a fundamental change. Businesses no longer submit various reports to the state, but instead provide the data required for reporting. This is a major step towards a future where reporting to the state no longer involves compiling data separately or entering it in multiple places.
According to Madis Laas, Head of the ETCB’s Income Tax Department, the experience of the first month of data-based tax reporting confirms that data transfer from business software is working well. “A large proportion of businesses are already transmitting data from their software to the state without having to do any unnecessary manual work. This also fulfils the main objective of the data-based solution – to reduce the administrative burden on businesses and enable them to comply with their reporting obligations without any unnecessary extra steps,” Laas noted.
By 10 November 2026, over 14,000 businesses – or 15% of TSD filers – had submitted data directly from their business software with just a few clicks. Nearly 26,000 businesses – or more than 27% of TSD filers – did so by uploading a file. Over 54,600, or 58%, of businesses entered their data manually in e-MTA.
During the first month of the data-based solution, issues were most frequently encountered when entering data manually via e-MTA or when uploading a file. “The statistics confirm that, despite the teething problems with the new system, most of the businesses required to submit the income and social tax return managed to do so. I would like to commend all the businesses and accountants who coped with the transition to the new tax reporting system and submitted their data on time,” said Laas.
The ETCB encourages businesses to consider fulfilling their reporting obligations via their own accounting software. It is precisely automatic data exchange that allows businesses to benefit most from the new solution and reduce the time spent on monthly reporting. A list of software applications offering this option is available on the ETCB’s website. The list is continuously updated to include software that is in the final stages of testing and development of the data-based solution.
The true value of the new solution will become apparent as it is used. “The first month showed that many businesses are ready to use automated solutions. At the same time, we have received valuable feedback on what needs to be improved first and foremost regarding data submission via e-MTA. It is important to us that automated solutions actually save businesses time. We will continue to work towards this,” stated Laas.
For businesses that do not use the new software solution, the state offers grants to support digitalisation and the transition to data-based reporting. These grants can be used to purchase a licence for business software that suits their needs, enabling them to automate their reporting process. Applications for the grants can be made via the Enterprise Estonia website.
Accountants, business software providers, software developers, and public sector partners were involved at various stages in the development of the new solution. This major change has been accompanied by some teething problems during the first month, which have been resolved as they have arisen. The ETCB would like to thank everyone for their cooperation, valuable feedback, and patience.
The aim of data-based tax reporting is to reduce the administrative burden on businesses. The administrative burden is being reduced step by step as businesses move away from submitting various reports towards automated solutions. The key principle is that a business enters data once into its accounting software and can then transmit that data to various state agencies from there. Such a solution enables businesses to fulfil their obligations more conveniently than before, with fewer errors and less time spent on the process.
Data-based tax reporting is part of the broader national real-time economy programme, led by the Ministry of Economic Affairs and Communications.
Read more about data-based TSD: emta.ee/apa-tsd.
