Income tax return data

Important information in declaring the income of year 2020

Income tax returns are submitted from 15 February to 31 May 2021.
Upon submitting an income tax return there is possibility of simplified donation.

15 February Submission of income tax returns through the e-tax available. Service bureaus start to issue printouts of the pre-completed income tax returns.
26 February Commencement of refund of income tax to customers who submitted their tax returns through the e-tax.
19 March Commencement of refund of income tax to customers who submitted their tax returns on paper.

31 May Deadline for submission of income tax returns.
1 October Term for payment of additional income tax and refund of overpaid amount of income tax (also applies for non-residents).

Home loan

The interest of one loan taken for the purchase and/or construction of a place of residence or for the acquisition of land for the construction of a place of residence, which the taxpayer paid to the bank in the previous year, can be subtracted from taxable income.

An overview of the interest paid can be found in the Internet Bank. Interest information can be sent from there to the pre-completed tax return of the Tax and Customs Board, where the amount of interest related to the loan is added.
In the case of two borrowers, 50% of the interest amount is added to the tax return of each of them. If a borrower who owns 100% of a place of residence wants to declare the entire amount, the other borrower must add the interest manually to their pre-completed tax return. The borrower can then declare the whole amount.
In the case of three or more borrowers, the entire interest amount paid will only be added to the pre-completed tax return of one borrower. In this case, subtracting loan interest from income is more complicated. We advise you to contact the Tax Board for assistance.
We will display your interest information on the basis of last year’s division. If you want to change it, you must correct the pre-completed tax return manually.

From 15th of February loan interest paid for year 2020 will be visible in Internet Bank.

You must request the statement if:

the loan interest is not visible in the Internet Bank from the 15th of February;
the borrowers have been amended in the loan agreement in 2020;
you would like to have a statement of the interest paid in 2019 and earlier.

You can order a statement:

from the Internet Bank;
from your nearest Swedbank branch;
in Estonian or English.

Request statement of interest paid

The amounts paid into a supplementary funded pension insurance contract and as contributions to third pillar funds can be subtracted from taxable income to an extent that does not exceed 15% of your gross income in 2020, 6,000 euros maximum.

The tax-free threshold on the third pillar applies to contributions made both by the employer and the person themselves, and the exemption is first applied to the contributions made by the employer.
Movement from one savings solution of the third pillar to another (e.g. from pension funds to a pension insurance contract), whereby no monetary payouts are made, is not subject to income tax.

PLEASE NOTE: The size of the tax-free income that can be used must be taken into account when deductions are made. The size of the tax-free income depends on the person’s annual income. Read more

Voluntary pension funds

Information about contributions to voluntary pension funds is sent to the Estonian Tax and Customs Board by AS Pensionikeskus that enters the information about the third pillar pension funds in a pre-filled electronic declaration.

Pension insurance

You can deduct the contributions made to a supplementary funded pension insurance contract in the amount that is transferred to pension savings. The share spent on life insurance cannot be deducted from taxable income.
Swedbank Life Insurance SE will send the information about pension insurance contributions to the Tax and Customs Board, who will add the information to the pre-completed electronic tax return.

Request a statement on paper

If you would like to submit a statement on paper to the Tax and Customs Board

about contributions to a third pillar pension fund or
pension insurance contributions,

please inform Swedbank’s Investment Support about this by sending an e-mail to investeerimistugi@swedbank.ee or calling us on 613 1606, and the statement will be sent to you by post.

The data of securities transactions on the pre-completed tax return may not be final and the person who submits the tax return must update them.
Only the data of securities transactions registered in Nasdaq CSD Estonian branch are automatically added to the pre-completed income tax return.
An overview of all securities transactions made via Swedbank is visible in the Internet Bank.

Dividends

A natural person may receive two types of dividends from an Estonian company, which are included in its annual income when calculating income not subject to tax:

Only corporate-level taxable dividends that are exempted from tax. In tax return, these are provided in Table 7.1.
Regularly paid company dividends, taxed at 7% and reflected in Table 5.1 of tax return.

Foreign dividends must be declared. If income tax has been withheld on foreign dividends or you have paid income tax abroad, you will only be able to deduct this income tax from Estonian income tax on the basis of a certificate issued by a foreign tax authority or a withholding agent.

It is possible to defer taxation of the income earned on investments (securities, investment deposit, unit-linked life insurance) as of 1 January 2011 by using an investment account for investing.

An investment account is an ordinary current account, but the Tax Board, must be informed about its use via the tax return.
When you use an investment account, you pay tax on the amount by which payouts from the account exceed the contributions made into the account.

Investment account report

Swedbank created the investment account report, which helps summarise the transactions made with financial and other assets in the investment account to simplify filling in the tax return.
You can use the report for filling in the tax return as well as for submitting securities transactions automatically to the Tax Board and later for keeping records of the transactions concluded in the investment account.

Income from employment and dividends received abroad shall be declared. Read more

The part of a payout received under a unit-linked life insurance contract, which exceeds the insurance premiums paid on the basis of the same contract:

is not subject to taxation if the contract was entered into before 1 January 2001;
is subject to taxation if the contract was entered into from 1 January 2001 to 31 July 2010 and the payouts were made before twelve years had passed from the entry into the insurance contract;
is subject to taxation if the contract was entered into as of 1 August 2010.
All unit-linked life insurance payouts, which exceed contributions, will be subject to income tax as of 1 January 2024 irrespective of when the contract was entered into or how long the contract term is.

An overview of the unit-linked life insurance payouts can be found here. Swedbank Life Insurance SE will send the information about the payouts to the pre-completed electronic tax return.

If you would like to submit a paper version of the statement of payouts made under a unit-linked life insurance contract to the Tax and Customs Board, please inform Swedbank’s Investment Support about this by sending an e-mail to investeerimistugi@swedbank.ee or calling us on 613 1606, and the statement will be sent to you by post.

If you sold any securities in 2020, you must indicate the acquisition price and cost as well as the sale price and cost of the securities sold (share, unit, privatisation voucher, bond, obligation, option, future, forward, etc.) in the tax return. The difference between the acquisition price (to which acquisition costs have been added) and the sale price (from which sale costs have been deducted) is the profit or loss derived from the sale of securities. You will find the acquisition price in the securities account statement or the realised gains report.

You may deduct the loss derived from the sale of securities during the same period (or in previous periods) from the profit derived from the sale of securities. If the loss derived from the sale of securities exceeds the profit, the amount of loss cannot be deducted from other taxable income. In this case, the loss derived from the sale of securities can be carried forward to the next taxable periods and deducted from the profit to be received from the sale of securities in the future. Loss must be declared in the year following the year in which it was incurred, as profit and loss are always declared in the period following the end of the taxation period.

The income earned by a natural person from a fund switch between the units managed by the same management company if no payouts were made to the person are not subject to income tax.

The interest paid out on the deposits (incl. current accounts) of all private Estonian residents is subject to income tax as of 1 January 2018.

The taxation obligation also extends to the contracts entered into before 1 January 2018, but in the case of which payouts are made in 2018 or later.

The bank withholds the income tax and transfers it to the Tax and Customs Board.

The interest earned on an investment deposit set up as of 1 January 2011 is subject to income tax. The interest paid on investment deposits set up before 1 January 2011 is not subject to tax.

Easy saver helps your savings grow in small but smart steps, seamlessly.

Thinking about the future and by making contributions to the 3rd pillar it’s possible to have income tax refunded from third pillar.

Contacts of the Tax and Customs Board

M to Th 8.30–16.30 and Fr 8.30-15.30
(+372) 880 0811
eraklient@emta.ee
www.emta.ee