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Income declared through Uber and Taxify has overwhelmingly increased

1 June 2017
% of the income declarations submitted online.

The last year’s income declared through Uber and Taxify was five times higher than in the preceding year. Likewise, the number of persons who declared foreign or rental income has risen.

Instead of 69 people in the previous year, the number of persons who lodged their income tax returns through Uber ja Taxify platforms this year was 319, the declared sum amounted to EUR 450 000 as compared with the earlier EUR 67 800.

„The increase in both figures show that if simpler services are available, people will prefer to comply with their tax obligations, and so contributing to the society,“ explained the leading specialist of the Service Department at the Tax and Customs Board Hannes Udde.

A regards foreign income subject to taxation in Estonia there were 873 tax returns more than in the previous year, the declared amounts increased by EUR 8.6 million as compared with the previous year.  

The number of people who declared income on rental increased by 1564 persons as compared with the year 2015. However, the sum subject to taxation decreased by EUR 1.5 million compared with the previous year.

 „Instead of taxing 100% of the rental income as it used to be earlier, it is now 80% of the previous year’s rental income that is subject to taxation, and this is, for sure, one of the reasons why the number of declarants has increased,“ Udde added.

685 511 people declared their income derived in the previous year, which is 18 000 people more than last year. According to Udde the main driver of the rise in the number of declarants may be the income tax refund for low-wage employees. „In previous years they lacked a motive to submit an income tax return, since all taxes were correctly withheld and there were no benefits. Today one condition for applying for the support of low-wage earners is a timely submitted income tax return,” Udde said.

This year the deadline for refund and payment is the 3th of July. The deadline for self-employed persons and persons who derived income from the sale of property or declared foreign income is the 2th of October.

Important figures:

  •         Joint declarations were lodged by 68 787 people, i.e. 12.6 % (almost 10 000 tax returns) less than in the previous year.
  •         EUR 1.7 million more will be refunded, the additional amount due increased a bit less than by EUR 1 million.
  •         Deductions were declared in the amount of EUR 2.6 billion (in 2015  EUR 2.4 billion).
    •    Benefits in the amount/for EUR 2.2 billion (in 2015  EUR 2 billion).
    • Unused benefits EUR 405 billion (for 2015 EUR 358 million).
    • The increase in the sum of unused benefits (47 million) was caused by limit reductions  in three types of expenses (housing loan interests, training and donations) from the earlier EUR 1920 to EUR 1200.
      • The number of tax returns where deductions could not be applied decreased from 23 331 to 20 550
      • The number of tax returns declaring training expenses decreased by 28 079, the  amount decreased by EUR 4, 5 million. The cause is the restriction in deduction of training expenses: it was not possible to deduct drivers’ training as well as the hobby education of persons older than 17.
      • Removal of the 5% restriction on donations did not make a big impact – in the 2016 tax returns the average deduction was EUR 117 per tax return, in 2015 it was circa EUR 103 per tax return.