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Main changes in declaring the income of year 2019

The main changes concerning the declaration of income of year 2019 in comparison with 2018 can be found in the table below. The changes effecting declaration of the income for 2020 in 2021 have been indicated as well.

  Income tax return for 2018 Income tax return for 2019
Due date of submission of income tax return 31 March 2019 30 April 2020
Due date of payment and refund of income tax not later than by 1 July or 1 October 2019 not later than by 1 October 2020
Dividend received from an Estonian company The dividend was subject to taxation, as a general rule, at the level of the company only

Dividends regularly payable by the company are subject to taxation:

  • at the level of the company by 14 per cent,

  • upon payment to a natural person, the income tax of 7 per cent is withheld. Such a dividend is indicated in part I of table 5.1 of the income tax return for a natural person.

Other dividends by the company are still subject to taxation at the level of the company only. Such a dividend is reflected in table 7.1 of the income tax return for a natural person.

Maternity benefit, adoption benefit or compensation for several months due to lay-off Benefit or compensation received in the fourth quarter may be divided over the calendar months in order to break up the basic exemption; you may make a correction into the income tax return for 2018 and declare a part from the benefit or compensation received in 2018 in your income tax return for 2019 Benefit or compensation received in the fourth quarter may be divided over the calendar months in order to break up the basic exemption and you may declare a part from the benefit or compensation received in 2019 in your income tax return for 2020 to be submitted by 30 April 2021
Donation of the recoverable income tax in the e-MTA Upon submitting an income tax return there is no possibility of simplified donation The recoverable income tax may be donated in a simplified way in the e-MTA to an association or a religious association entered in the list of persons benefiting from income tax incentives
Income tax return for a resident of the other state which is a contracting party to the EEA Agreement Calculation of deductions made from the income taxable in Estonia depends on whether the income of a person taxable in Estonia forms at least 75 per cent of his/her taxable gross income

Deductions made from the income taxable in Estonia shall be taken into account in proportion to the rated percentage of the person’s income taxable in Estonia in his/her gross income taxable in 2019.

(Upon declaring the income for 2020, no percentage in proportion to deductions shall be calculated.)

 

  The changes in declaring the income for 2020 (income tax return to be submitted by 30 April 2021)
The increased basic exemption upon provision of maintenance to children The increased basic exemption upon provision of maintenance to children shall increase starting from the third child. The increased basic exemption is 1,848 euros for the second child and 3,048 euros starting from the third child. The increased basic exemption shall not be decreased, if the child receives the survivor’s pension or the national pension upon loss of the provider.
Deductions in the case of deriving income from a foreign state A resident in Estonia and a resident of the other state which is a contracting party to the EEA Agreement may take deductions into account irrespective of the share of the income derived from a foreign state.

 

  The changes in declaring the income for 2021 (income tax return to be submitted by 30 April 2022)
Tax exemption for allowances Income 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.

 

17.01.2020