Accounts for investing

1. The easiest way to declare investment income is to complete an investment account report in the Internet Bank.
2. Once you have completed your report, do not forget to send it to the Estonian Tax and Customs Board via the Internet Bank on the same report page.
3. Next, when declaring your other income on the website of the Estonian Tax and Customs Board, also take a look at clause 6.5 where you have to confirm that you have an investment account and where you should see the money you have deposited to and withdrawn from your investment account.

All cash deposits and withdrawals must be declared in the investment account report. If withdrawals exceed contributions, income tax of 20% is payable on the excess amount.

The report must reflect all the amounts you have deposited to or withdrawn from the account during the previous calendar year. For example, if you fill in an investment account report in 2022, you will need to indicate the transactions you made during the whole of 2021. The investment account report must be sent to the Estonian Tax and Customs Board even if no transactions have taken place.

In the Internet Bank, you need to fill in an investment account report. Once you have completed the report, please send it to the Estonian Tax and Customs Board via the Internet Bank.

If you are declaring your other income on the website of the Estonian Tax and Customs Board, please also take a look at clause 6.5 where you have to confirm that you have an investment account and verify that your report has been included in the declaration. Review also clause 6.1, so there aren’t any transactions added automatically – when using investment account, this clause has to be empty. If you have any problems, please contact the Estonian Tax and Customs Board.

Please also take a look at the Investment Account Guide of the Ministry of Finance (in Estonian) and the information sheet of the Estonian Tax and Customs Board.

If you have transferred (sold) securities in the previous calendar year, you must submit the acquisition price and cost of the transferred securities (e.g. shares, fund units, bonds) and the transfer price and cost. The difference between the acquisition price (plus acquisition cost) and the transfer price (minus disposal cost) is either the gain or loss on transfer of the securities. You can find the acquisition price in the securities account statement or in the realised profit report.

Losses on the transfer of securities in the same or previous periods may be deducted from the profit on transfer only if they do not exceed the profit. If the loss on the transfer of securities exceeds the profit, the loss may be carried forward to subsequent tax periods and deducted from future profits on transfer. Losses and profits are always declared in the period following the end of the taxation period, which is the year after the transactions were performed.

If you have exchanged investment units between funds managed by the same management company, you do not have to pay income tax if no payouts have been made.

In the Internet Bank, you can view the data you need to complete sections 6.1 and 8.2 of the tax return in the e-service of the Estonian Tax and Customs Board. To this end, please view the securities account statement and the realised profit report.

In the Estonian Tax and Customs Board e-service, take a look at clauses 5.1, 7.1, 8.1 and 8.8 in your declaration and fill in if needed.

More information is available on the information sheet of the Estonian Tax and Customs Board.