Income tax return data

From 15th of February loan interest paid for year 2019 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 2019;
• you would like to have a statement of the interest paid in 2018 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 2019, 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.

• 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.

Read more about what you should keep in mind when declaring sales of securities.

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.

Read more about the investment 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.

• Create investment account report
• Securities transferred to investment account system as of 31.12.2010

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.

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.

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.