Income tax returns must be presented by Estonian residents. An Estonian resident is someone whose permanent residence is in Estonia or who stayed in Estonia for 183 days or more during one year.
A non-resident is obliged to submit a tax return if he/she has received taxable income that is subject to taxation in Estonia, but on which no income tax has been withheld upon payment.
Estonian residents must also declare the income that they have received abroad.
If an Estonian resident stayed abroad for work more than 183 days in 12 consecutive months and taxes were paid from the income abroad, no additional income tax has to be paid in Estonia, and the income must be declared as tax free income from abroad.
If an Estonian resident stayed abroad for work less than 183 days, income tax has to be paid on the salary received abroad as well. Taxes paid abroad are taken into account, so no double taxation occurs. If the income tax in the other country is smaller than in Estonia, the difference in the income taxes must be paid in Estonia. If the income tax in the other country is higher than in Estonia, no refunds are paid for the difference in the taxation rates.
In Estonia income tax returns must be presented by 2 April. If you have only received income from employment in one organisation and no other income, you do not have to present an income tax return, but you can still do so, as you may get some refunds. Refunds are paid in the extent of the income tax on educational costs; paid housing loans; donations and gifts to non-profit research, cultural, educational, sports or social welfare organisations, religious organisations, public universities or political parties; and optional funded pension payments. Additional refunds are paid to families with two or more children.
Married couples can present a joint income tax return, which is useful if one of the two does not have a permanent income or the income received is below the income tax free limit.
While income tax returns can be filed on paper in the regional offices of the Estonian Tax and Customs Board, the most convenient and widespread is electronic submission through the E-Tax Board, where pre-filled forms are available.
The E-Tax Board can be entered from the Estonian Tax and Customs Board’s homepage with your ID card, or through an Internet bank. The E-Tax Board and the income tax return forms are currently not available in English. Contact an Estonian EURAXESS Services Centre for assistance with the income tax return forms.
Estonian Tax and Customs Board. Foreigners coming to work to Estonia – taxation checklist (pdf)