Main changes involving your income tax return concern more pre-filled data and increased basic exemption.
According to Senior Specialist Hannes Udde from the Service Department of the Estonian Tax and Customs Board, verification of data in advance ensures that everything goes smoothly when you file your income tax return. “We add more and more pre-filled information on tax returns each year, this year for example we have added income from children’s summer jobs and Estonian Agricultural Registers and Information Board grants and all of this is being done to further simplify the tax return filing process,” Udde explained.
Last year 96% of declarations where filled electronically. One-click tax returns are also available this year where the person is displayed all known data together with the calculated result on one page and all they have to do is click on the confirmation button and fill their taxes within minute of two. “In addition, taxpayers will get quick information on the results of the tax return, which means that if you are deducting home loan interest for the first time then instead of a few-days wait that happened before, now the system will almost immediately let you know that you need to submit additional documentation,” Udde added.
The major tax changes relevant to filing your income tax return are the lowering of the income tax rate to 20 percent and the reduction of the unemployment insurance premiums to 1.6 percent from the earlier 2-percent rate. Also, the basic exemption increased from 1,728 euros to 1,848 euros and increased basic exemption in event of pension increased to 2,640 euros.
This year we are expecting 660,000 tax returns to be filed and we estimate that refunds will amount to 90 million euros, which is slightly lower than last year. You can file your income tax return at E-Tax Board/E-Customs from 15 February. The printout of pre-filled income tax returns at customer service centres will start at the same date.
We will be making the first income tax refunds to e-filers by 29 February and the last day to file your income tax return is 31 March. The processing of tax returns filed on paper will take longer. The general due date for payment and refund of income taxes is on 1 July this year.
Information and assistance related to income tax returns are available on the website of Estonian Tax and Customs Board, its customer service centres or by calling our information hotlines:
880 0810 – Questions on tax returns, assistance with completing the electronic or paper-based tax return
880 0811 – Taxation of natural persons
Information hotlines operate from Monday to Thursday at 8.30 a.m. – 4.30 p.m. and on Friday at 8.30 a.m. – 3.30 p.m.
You are also welcome to email your questions to firstname.lastname@example.org or create a ticket at e-Tax Board/e-Customs in the section “Messages to ETCB” or ask questions from our specialists in the forum.