On Monday, the declaration of income earned last year commenced in Estonia, facing initial challenges due to a heavy load on the electronic tax system.
On Monday, Estonia initiated the process for citizens to declare their income earned in the previous year. This system is intended to streamline tax reporting through e-services provided by the Estonian Tax and Customs Board. However, users faced difficulties accessing the e-MTA system on Monday morning due to overwhelming traffic, which rendered the platform temporarily unavailable. Such issues highlight the challenges of transitioning to online systems for tax submissions, especially during critical deadlines.
The income declaration for the year 2025 includes a flat tax rate of 22%. Additionally, specific allowances are in place: individuals can benefit from a monthly tax-free income of up to 654 euros and an annual limit of 7848 euros, contingent on their total earnings. For those of retirement age, a fixed tax-free income of 776 euros per month or 9312 euros per year is designated, irrespective of other income levels. These provisions aim to adapt tax obligations based on personal income brackets, fostering a more equitable tax system.
Furthermore, individuals need to ensure that their investment account data is appropriately reported. Declarations must include these data submissions from the financial institution's self-service environment before individuals submit their tax returns. Additionally, investment accounts held by minor children must be declared annually. This comprehensive approach aims to enhance transparency and accountability within the framework of personal income tax declarations, ultimately ensuring compliance and accurate tax collections for public funding purposes.
