Changes in Estonian legislation 2014

Amendments to the Income Tax Act

  • Investment funds regulation in Income Tax Act will be harmonized between Estonian and foreign investment funds.  To the Income Tax Act will be added chapter 51 about contractual investment funds income taxation. https://www.riigiteataja.ee/akt/114022013001  
  • Since 1. January 2014 the „contractual investment fund” will be added to the taxpayer definition.

Amendments to the VAT Act

Since 01.01.2014 the possibilities to verify tax-free sales are extended and when the amendments take effect it is possible to prove export with electronic certificate.

Alcohol, Tobacco, Fuel and Electricity Excise Act Amendment from 01.12.2013

The amendments clarifies the rules of excise duty exemption in case of trade from outside of European Union. According to the changes the fuel and alcohol which has been imported outside of European Union to the Estonia since month from the first arrival is deemed to be exceeding the duty-free maximum level. In case of tobacco the duty-free maximum level is considered to be exceeded after the second arrival in one calendar month.  

According to the amendments the fuel which is located in motor vehicle non-standard fuel tank is considered as above allowable amount.

Source: https://www.riigiteataja.ee/akt/105112013002

Amendments to the Taxation Act from 01.01.2014

The provisions concerning the prescription will take effect in Taxation Act § 132:

  • The amount of tax collectible on the basis of administrative act or declaration by the compulsory execution limitation period is five years.
  • The tax amount collectible on the basis of liability decision or notice of assessment limitation period is five years.

The basis when compulsory execution limitation period is interrupted are:

1) if the term for the payment of taxes is extended;

2) if the tax arrears are to be paid in instalments;

3) if a bankruptcy petition is submitted;

4) if enforcement proceedings are commenced in order to collect tax arrears;

5) if measures for provisional legal protection are applied by the administrative court.

6) upon submission of the reorganisation application or of the  debt restructuring application by a person who owes arrears;

https://www.riigiteataja.ee/akt/107062013004

Minimum wage in 2014

Since 01 January 2014 the minimum wage is 355 euros per month and EUR 2.13 per hour.  The monthly rate in 2014 is 320 euros and the minimum social obligation is 105, 60 euros.

Parliament of Estonia ratified convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion agreement with respect to taxes on income between the Republic of Estonia and the United Mexican States.

That agreement and the additional protocol ratified in October 2013 and will apply from January 2014, subject to withholding tax paid on the income.

Source: https://www.riigiteataja.ee/akt/223102013002

Parliament of Estonia ratified convention Avoidance of Double Taxation and the Prevention of Fiscal Evasion agreement with respect to taxes on income between the Republic of Estonia and the Republic of Cyprus.

That agreement and the additional protocol ratified in September 2013 and will apply from January 2014, subject to withholding tax paid on the income.

Source: https://www.riigiteataja.ee/akt/204102013002

Parliament of Estonia ratified convention Avoidance of Double Taxation and the Prevention of Fiscal Evasion agreement with respect to taxes on income and capital between the Republic of Estonia and the Republic of Uzbekistan.

That agreement and the additional protocol ratified in December 2013 and will apply from January 2014, subject to withholding tax paid on the income.

Source: https://www.riigiteataja.ee/oigusuudised/eelvaadeSeadusUudis/1159

Parliament of Estonia ratified convention Avoidance of Double Taxation and the Prevention of Fiscal Evasion agreement with respect to taxes on income between the Republic of Estonia and the Kingdom of Bahrain.

That agreement and the additional protocol ratified in December 2013 and will apply from January 2014, subject to withholding tax paid on the income.

Source: https://www.riigiteataja.ee/oigusuudised/eelvaadeSeadusUudis/1160

Parliament of Estonia ratified convention Avoidance of Double Taxation and the Prevention of Fiscal Evasion agreement with respect to taxes on income between the Republic of Estonia and the Kingdom of Thailand

That agreement and the additional protocol ratified in December 2013 and will apply from January 2014, subject to withholding tax paid on the income.

Source: https://www.riigiteataja.ee/oigusuudised/eelvaadeSeadusUudis/1161

 

 

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