Tax authority urges struggling businesses to reschedule tax arrears payment

Tax and Customs Board (MTA) logo.
Tax and Customs Board (MTA) logo. Source: Siim Lõvi/ERR

The Tax and Customs Board (MTA) is calling on business-owners struggling with tax payments due to the emergency situation to reschedule the payment of their tax arrears via the tax authority's online channels, noting that the inclusion of accrued interest will continue for any non-deferred arrears when the emergency situation ends.

The MTA is urging businesses to submit their applications as soon as possible as well as remain patient as the processing thereof may take time. The tax debt deferral is aimed at helping out business-owners experiencing temporary payment difficulties.

"Businesses should not terminate their operation just because they are experiencing temporary difficulties with their tax payments due to the emergency situation," said Liina Joots, head of debt management at the MTA. "We presume that those who had been duly paying their taxes prior to March also plan to continue doing so in the future, and that their decline in revenue and payment difficulties are generally temporary."

According to Joots, if the government does not extend the emergency situation, the daily accrual of interest for non-deferred debts will be 0.03 percent, and the MTA will also begin debt collection.

A prerequisite for being able to reschedule the payment of one's tax arrears is previous duly submission of the company's tax returns.

The MTA can reduce the interest rate on deferred tax arrears up to 100 percent on condition that the business did not have any tax debts prior to March 1, 2020, or if the payment thereof had been correctly rescheduled and the debt remained below €20,000.

The interest rate of other applicants' arrears will generally be reduced up to 50 percent.

Altogether 8,843 businesses with no prior tax debt have incurred tax arrears exceeding €50 during the emergency situation, owing a combined total of nearly €99 million. The tax debts of 8,142 businesses, however, remain below €20,000. Among those with prior debts to the MTA, 2,089 have not been able to adhere to their payment schedule or fulfill their new obligations.


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Editor: Aili Vahtla

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