INCOME TAX
Maximum daily allowance increased
Income from rent defined in the Income Tax Act
Income tax incentive related to natural person’s apartment rent
Tax exempt income
Additional tax exempt income of pensions increased
Training expenses
The expenses paid for obtaining a driving licence for driving motor vehicles of:
are no longer considered training
expenses.
If teaching a person to
drive is necessary for work or enterprise-related purposes, the
expenses paid by an employer for the relevant training of their
employees or paid by a sole proprietor to train themselves are still
subject to tax exemption.
Limit of gifts and donations
Restriction on total amount of deductions from income
VALUE ADDED TAX
Amendments enforced on 1 May 2016
The list of persons to whom goods or services can be sold at 0% tax, i.e. with a VAT exemption certificate, was extended.
Sale to the armed forces of NATO member states and the civilian staff accompanying them when such forces are taking part in the common defence effort in Estonia.
Sale of goods or provision of
services to the headquarters of an international organisation
situation in another Member State or to an international
military headquarters.
Amendments enforced on 1 May 2016
Sale of goods or services to an international military headquarters situated in Estonia, provided that the relevant incentive is stipulated in an international agreement ratified by the Riigikogu.
Goods and services can be sold to an EU institution located in Estonia when the total cost of the goods or service without VAT is at least 53 euros according to the invoice. This amount can also be smaller in the case of fuel, utility expenses and communication services.
When goods are sold or a
service is provided at 0% VAT to an EU institution, NATO armed forces
or an international military headquarters located in Estonia,
then the certificate is approved by the Ministry of Foreign Affairs
or the Ministry of Defence.
Approval of tax-free certificate
The goods exported in the case of tax-free sales to natural persons can be inspected and the tax-free certificate can be approved by the customs or the Police and Border Guard Board.
Long-term cross-border services
In the case of long-term (over a year) cross-border services when the recipient must be subjected to reverse taxation, the turnover is deemed to have occurred on 31 December every year (including the first year of service provision).
Reverse taxation of import
The limit of accommodation services increases
The VAT rate on accommodation services and accommodation services with breakfast will increase from 9% to 14% from 2017 onwards.
SOCIAL TAX
The tax rate will be 32.5% (12.5%) from 1 January 2017.
Latevatst articles
2
Apr
22
Dec
19
Sep
We will send you articles keeping you up to date with the latest trends and developments in accounting, taxation or legal fields.