Beginning Tuesday, the Estonian Tax and Customs Board (MTA) will begin refunding overpaid taxes to those who have already filed their returns and whose returns do not require any additional checks. The tax authority is expected to refund €12.7 million on the first day alone.
Hannes Udde, chief of services at the MTA, said that at least €10 million of income tax will be returned every business day.
"As, on the basis of the tax returns submitted on the first day alone, some 250,000 people are expecting tax refunds in the amount of €90 million, we ask that people be patient, as everyone will gradually receive their refunds," Mr Udde said in a press release.
As of Monday, altogether 505,944 income tax returns had been submitted, and 422,383 people are expecting refunds in the total amount of €140.6 million. Based on these numbers, the refund process is expected to take up to three weeks.
Next month, the MTA will begin contacting separately those individuals who used the basic exemption above or below the maximum limit but have yet to file their taxes.
"As some people have not had to file their taxes before, we are reminding people that they can do so until 1 April," Mr Udde added.
Taxes owed, refunds to be paid by 1 July
Estonian taxpayers have until 1 April to file their returns. The deadline for both paying additional owed taxes and refunds is 1 July.
The deadline for the payment of additional owed taxes and refunds of overpaid taxes if business income, gains from the transfer of property or income earned in a foreign country is 1 October; the same deadline applies to non-residents who declared deductions in Estonia.
According to MTA figures, 42% of wage-earners used their basic exemption in full, with 52% falling below and 6% exceeding the annual limit.
The limit for basic tax-exempt income last year was €6,000, up from €2,160 in 2017. Beginning with an annual income of €14,400 and ending at €25,200, the size of the basic exemption gradually declines to zero.
Editor: Aili Vahtla