Important tax changes in Estonia to relieve pressure on entrepreneurs

We hereby highlight important changes in taxes that have been implemented by the state in Estonia in order to relieve pressure on entrepreneurs in these economically challenging times.

The Estonian Tax and Customs Board (ETCB) has suspended interests on tax arrears during the emergency period which, with retroactive effect, is calculated from 1 March to 1 May. However, all ongoing tax proceedings and enforcement of notices of assessment shall continue.

Starting from 1 May, ETCB will lower the interest rate from the current 0,06 per cent to 0,03 per cent indefinitely. In payment of tax arrears in instalments, interest rates may be lowered up to 100 per cent (in comparison, usually a lowering of interest rates by a maximum of 50 per cent is possible).

The state will pay an advance payment of social tax for the first quarter to self-employed persons (SEP) to each SEP’s prepayment account at ETCB. In case the SEP has already made an advance payment, money received from the state can be used to cover any other tax obligation either immediately or in the future. The SEP may also request the money to be paid to its bank account.