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 the application form for determination of residency (form R).
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 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 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 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;
- persons who want to declare increased basic exemption for spouse (up to 2160 euros).
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 6000 euros.
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, and so on), then an income tax return must be submitted.
|15 February||Submission of income tax returns through the e-services environment e-MTA available.
Service bureaus start to issue printouts of the pre-completed income tax returns.
|Commencement of refund of income tax to customers who submitted their tax returns through the e-MTA.|
|18 March||Commencement of refund of income tax to customers who submitted their tax returns on paper.|
|2 May||Deadline for submission of income tax returns.|
|3 October||Term for payment of additional income tax and refund of overpaid amount of income tax.|
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-MTA or requested in any service bureau of the Estonian Tax and Customs Board.
Data entered into a pre-filled income tax return include:
- 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, and so on);
- benefits for temporary incapacity for work (sickness pay);
- training expenses paid;
- gifts and donations;
- pension insurance contributions and payments made;
- data of the Estonian Central Depository for Securities and registrar of pensions register on transactions of transferring securities (except the acquisition costs of securities transferred and the sales prices in relation to transfers);
- income accounted only for calculation of basic exemption;
- income which is included only in the calculation of basic exemption (such as dividends and payment from the owners' equity that are taxed at company level, income received on an entrepreneur account, from which social tax has been deducted).
Not pre-filled are:
- data on income received from a foreign country and expenses (tax incentives) paid in a foreign country, 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.
A natural person can submit an individual tax return. In case a person's taxable income is below 2160 euros, this person's spouse can deduct the person's increased basic exemption if the total taxable income of spouses does not exceed 50 400 euros per calendar year.
Any portion exceeding taxable income or the housing loan interest or training cost limit or the amount of the basic exemption for children, or any portion thereof, may be transferred to the spouse.
Transferring unapplied tax incentives can be requested in the income tax return. After indicating the request, the Estonian Tax and Customs Board will automatically transfer the unapplied part of the increased basic exemption to the spouse's income tax return. The spouse has to accept the transferred unapplied increased basic exemptions, if desired.
Instructions for amending electronic income tax returns, in case spouses wish to share tax incentives
- Spouse A is filling in the income tax return. The system offers him/her the option to transmit unused tax incentives (deductions) to the spouse’s tax return. Spouse A indicates the request and confirms his/her tax return.
- Spouse B starts filling in his/her tax return. He/she accepts the spouse’s expenses by clicking “Transfer data to the declaration” and confirms his/her tax return.
- It turns out that tax returns have to be changed. Spouse B submits his/her tax return again, but does not accept transferred expenses and confirms his/her tax return.
- Spouse A starts a new tax return by using the data of the Estonian Tax and Customs Board. Spouse A makes the necessary amendments in his/her tax return. In case he/she again wishes to transfer his/her expenses to the spouse, he/she may do so. Spouse A confirms his/her tax return.
- Spouse B has to change his/her tax return again in case he/she wishes to accept the spouse’s expenses. Spouse B confirms his/her tax return.
In the e-services environment e-MTA
Entry in the e-MTA:
- with an ID card
- with mobile-ID
- with Smart-ID
- with the electronic identification (eID) of the European Union's Member States (see the list of eID tools)
Location of the income tax return in the e-MTA: select "Taxes" from the menu and then "Income tax return".
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.
The full version of the income tax return can be submitted in a smart phone.
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. 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 at the webpage "Tax return forms and instructions".
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-MTA. A service bureau official is there for your assistance.
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, and so on), which the Estonian Tax and Customs Board needs for verification of data can be:
Return income tax can be donated in a simplified way in the e-MTA to the association or religious association included in the list of associations entitled to income tax relief. Donations can be made to up to three recipients and none donation should be not less than 1 euro.
The total amount of tax refundable may be donated in whole or in part. In the case of a partial donation, the individual may at the same time request the remainder to the bank account and/or leave it in their prepayment account.
Tax exemption for allowancesIncome tax is not charged and withheld on allowances paid on the basis of the State Budget Act and the Atmospheric Air Protection Act in order to improve the living conditions for families with many children and to increase the energy efficiency of small houses.
Tax amendments related to the funded pension reformTaxation of pensions from 1 January 2021
Sole proprietor engaged in agricultural productionA sole proprietor may additionally deduct up to 5,000 euros during a period of taxation from his or her income derived from the sale of self-produced agricultural products after the deductions of certified expenses have been made.
Last updated: 11.01.2022