The period of taxation is a calendar year.
In general, resident individuals must file an individual tax return by 31 March following the year in which the income arises. Electronic filing of tax returns becomes available from 15 February. Certain items of foreign-source tax-exempt income must be reported for information purposes.
Married resident taxpayers may elect between filing their tax returns jointly or separately.
For non-residents, the tax withheld at source at domestic or treaty rates generally constitutes final tax as regards their Estonian-source income, and the non-resident is generally not obligated to submit a tax return to the Estonian tax authorities for income so taxed. However, for certain types of Estonian-source income, non-residents are liable under Estonian domestic law to self-assess Estonian tax and submit a tax return to the Estonian tax authorities by the following deadlines:
- Capital gains realised from certain types of assets should generally be reported by 31 March of the year following realisation of the gain.
- Capital gain from the sale or disposal of immovable property located in Estonia should be reported within one month from realising the gain.
- Profits derived from business conducted in Estonia should generally be reported by 30 June of the following year (or within two months if business activities in Estonia are terminated).
- Other items of Estonian-source income from which income tax was not withheld but should have been withheld should be reported by 31 March of the year following the year in which the income was received.
Payment of tax
A resident individual will receive an income tax assessment based on one’s return as filed at least 30 days before the tax payment is due and, based on that, must pay the final amount of income tax due by 1 July of the year following the period of taxation. The resident taxpayer who reported business income, foreign income, or capital gains in the tax return must pay the final amount of income tax due by 1 October of the year following the period of taxation.
Non-residents will not receive tax assessments. In general, non-residents must pay the income tax due to the tax authorities within three months from the deadline of submitting the tax return.
Late payment interest on tax arrears is 0.06% per day.