Application of tax treaties and refund of the overpaid income tax in Estonia

In Estonia the tax incentives or exemptions arising from the conventions for the avoidance of double taxation (hereinafter tax treaty) can be applied only if the recipient of the payment has certified his/her residence status to the withholding agent. The certificate of residency shall be submitted to a service bureau of the Estonian Tax and Customs Board at least at the moment when the tax return is due. The document need not be submitted if valid data on the recipient of income and the residency of the recipient of income have been entered in the Register of Taxable Persons.

You may use form TM3 (547.39 KB, PDF) available on the website of the Estonian Tax and Customs Board for certifying the recipient of income and the residency of the recipient or a relevant form issued by the competent tax authority of your country. The certificates are valid 36 months upon legal persons and 12 months upon natural persons as recipients of income.

In case the income tax on the payments made to the taxpayer has been withheld at higher rate than prescribed in tax treaty, the beneficial owner of the income or his representative has the right to apply to the Estonian Tax and Customs Board within three years after the due date for payment of the tax for a refund of the overpaid tax amount.

In order to get back the overpaid income tax amount, the application on form TM3 for a refund of the Estonian income tax withheld at source has to be submitted to the service bureau of the Estonian Tax and Customs Board in Tallinn (Lõõtsa 8a, 15176 Tallinn, Estonia, e-mail address

A freeform application will be accepted, but it must include taxpayer's bank account number and information about amounts of payments and tax withheld in Estonia. Upon the refund of overpaid tax to a taxpayer by transferring the amount to the taxpayer’s bank account located in a foreign state, the costs of transferring the refunded amount shall be covered by the taxpayer.

A duplicate of a certificate issued on income derived and taxes paid to a taxpayer in Estonia would be eligible to enclose. In order to facilitate the refunding process a taxpayer should inform the tax authorities about when the payments and taxation took place in Estonia. 

December 2013