Tax Board monitoring investment income declarations this year

The Tax and Customs Board will focus on the declaration of income from securities and investment transactions this year, as both the number of such transactions and the use of investment accounts have grown significantly in recent years.
The declaration period for last year's income runs from February 15 to the end of April.
Overpaid income tax will be refunded starting March 5 for those who file their declarations electronically. For those submitting paper declarations, refunds will begin on March 18.
The speed of the refund does not depend on when the declaration is submitted.
The deadline for all refunds is October 1, which is also the deadline for paying any additional income tax due.
Although the income tax rate increased from 20 percent to 22 percent as of January 1, this change does not affect last year's income.
The general tax-free income threshold is up to €7,848 per year, but this depends on the taxpayer's total annual income. For those with an annual income exceeding €25,200, the tax-free income is zero. For individuals of retirement age, the tax-free income threshold is €9,312 per year, regardless of their income level.
Compared to previous years, it is no longer possible to deduct mortgage interest, tax-free allowances for children, or additional tax-free income for a spouse or registered partner.
It is still possible to deduct educational expenses, gifts, and donations up to a maximum of €1,200. Educational expenses can be transferred to a spouse or registered partner, who can also apply the deduction up to the same limit of €1,200.
Contributions to third-pillar pension funds can be deducted up to 15 percent of taxable income, but no more than €6,000 per year.
The Tax and Customs Board expects declarations from individuals who have received wages or platform income from which income tax has not been withheld; used more tax-free income than allowed; made securities transactions or earned income from financial assets (including cryptocurrencies); used an investment account; earned wages or other income abroad (such as interest or dividends); sold real estate or earned rental income from which tax has not been withheld; sold timber or logging rights for standing forests; or operated as a sole proprietor.
Additionally, all individuals who have paid educational expenses, made contributions to a third-pillar pension fund, or used less tax-free income than allowed — and are therefore entitled to a tax refund — must submit a declaration.
Focus on securities and investment income
Madis Laas, head of the Tax and Customs Board's income tax department, said at a press conference on Wednesday that the focus this year is on investment account holders, as the number of users has grown significantly.
The total amount deposited into investment accounts has now exceeded €1 billion.
"It has increased, and looking ahead, more tax revenue could start coming in," he said.
When declaring securities income, transactions conducted on the Nasdaq Baltic stock exchange are pre-filled in the tax declaration. It is important to add the acquisition cost of the securities, any documented expenses directly related to the sale, and other transactions involving the securities.
For transactions conducted through an investment account, the pre-filled fields must be deleted. When declaring an investment account, it is possible to send a report from internet banking, and by doing so, the investment account details will be pre-filled in the tax declaration.
When using an investment account, it must be declared annually, including for minor children. In the e-MTA system, a parent can confirm the tax declaration for a minor child (including those aged 18).
In most cases, with some exceptions, so-called platform income — income earned through various online platforms — must also be declared.
Some real estate income data is pre-filled in the tax declaration. It is important to add the acquisition cost of the property, any documented expenses directly related to the sale, and other transactions involving the property, including rental income.
Rental income is also on the rise, noted Laas. For example, in 2023, rental income in Estonia amounted to €73 million.
Vehicle owners can submit their tax declaration after opening their vehicle tax notice. In the tax notice, they can review their tax obligation and choose to leave their income tax refund in their prepayment account to cover vehicle tax or land tax liabilities.
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Editor: Marko Tooming, Helen Wright