Estonia: Some 502,000 people file taxes by Monday morning

TALLINN – A total of 501,782 tax returns for 2018 had been submitted to the Estonian Tax and Customs Board by Monday morning.

The amount of income tax to be refunded to taxpayers stood at 139.8 million euros and the sum total to be paid additionally in income tax was 11.1 million euros, spokespeople for the Tax and Customs Board said.

Filing of tax returns for 2018 opened on the evening of February 14.

The basic tax-exempt income last year was 6,000 euros, compared with 2,160 euros in 2017. Starting from an annual income of 14,400 euros, and ending with 25,200 euros, the basic exemption gradually declines to zero.

The tax authority has estimated that refunds of overpaid tax to people who used a smaller basic exemption during the year than their income entitled them to amount to 141 million euros. In total, the Tax and Customs Board is due to return to residents some 200 million euros in overpaid tax, which in addition to the basic exemption not used by the taxpayer during the year includes other deductibles.

Payouts of income tax refunds will start on February 26 for people who filed their taxes online and on March 19 for people who submitted their tax return on paper.

Data presented by the Tax and Customs Board indicates that of the people receiving remuneration, 415,000 people, or 42 percent, used their basic exemption in full. Altogether 519,000 people, or 52 percent, used it below and 62,000, or 6 percent, over the maximum limit.

Income tax returns can be filed until April 1 and the final date for the payment of additional income tax and refund of overpaid amount of income tax is July 1.

For the payment of additional amounts of income tax and refund of overpaid amounts of income tax, if business income, gains from transfer of property or income derived in a foreign country is declared the due date is October 1. The same due date applies to non-residents who declared deductions in Estonia.