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					E-Tax Board/e-Customs
and
procedures with regard
to electronically filed
tax returns


Risto Hinno
Chief Expert
Service Management Department
 ESTONIA
 • Population 1.35 million
 • Internet usage 74%
 •Internet banking 88%
 • Wifi connection is available in
 more than 1100 public places




ESTONIAN TAX AND CUSTOMS BOARD
•Clients: all taxpayers, both natural and legal
persons (incl 166 000 companies and 35 000 self-
employed), and customs clients
• The first public body in Estonia that started to
offer electronic services to its clients




                                                     2
  E-services of the Estonian Tax and
Customs Board – e-Tax Board/e-Customs

 E-Tax Board/e-Customs – tax and customs services on the Internet
 Was opened in 2000
 Offers 24 hours a day
      about 30 services for natural persons
      over 50 services for legal persons
 Enables secure data exchange, personal information
 High-speed, simple, convenient, paper-free
 Different tax and customs services are available in one
environment
 Is a quite unique technical solution on the European tax map as to
taxpayer service and communication

                                                                 3
            How to become a user of the
              e-Tax Board/e-Customs
 An agreement for the use of the e-Tax Board/e-Customs is
  concluded with the Tax and Customs Board
     natural persons - electronically when gaining the first access to the
      e-Tax Board/e-Customs
     legal persons – in the tax and customs office or by e-mail digitally
      signed
 All services to private client are available immediately after the
  conclusion of the agreement
 On behalf of a legal person, on the basis of a power of attorney
  on or more natural persons may use the e-services. It is possible
  to determine for every authorised person which services meant
  for a business client he/she may use in the e-Tax Board/e-
  Customs
                                                                              4
          The ID-card - primary personal
        identification document in Estonia
• The ID card has 3 main functions :
    1) visual identification
    2) authentication when utilizing online services
    3) digital signing
• The card contains a chip holding a personal data file (incl PIC) and
  two certificates: one for authentication purposes, and one for
  qualified digital signatures
• The ID-card certificates are linked to the various registers through
  the Personal Identification Code




                                                                    5
 Using e-Tax /e-Customs via secure
               gates
Portal (home page) of the Tax and Customs Board: www.emta.ee




                                                               6
    Private person




Legal
representative
of a business


                     7
Home page of the personal e-service
          environment




    direct links can be
    selected by a taxpayer                                     links to services: tax
    based on what they need                                    returns, e-customs, tax
    to use most frequently                                     accounts, information on
                                                               payments, etc.

                                                               information on how to
                                                               get in touch with the Call
                                                               Centre
                      contact information of the taxpayer is
                      always displayed on the front page
                      to ensure errors are corrected                                8
                 Facilities for legal persons
 All declarations can be electronically filled in on screen and
instantly approved/submitted
 Additional possibility is to upload the declarations in specific file
format
 All messages on errors when filling in and filing the declaration
appear on-line
 Detailed information on mistakes on declarations can be
constantly followed
 All calculations are made electronically and results are instantly
visible after filing the declaration
 Claims and payments are constantly followed on-line
 Electronical submission of the claims for refund

                                                                      9
    Example of Functionality:
Natural Person Income Tax Return
         1. Collect      2. Pre-fill
       information          the return




 4. Refund

 or                                3. Let
                                      the
                               taxpayer
      inform
                      confirm or correct
                                            10
               Example of Functionality (2)
Banks, pension funds, insurance,              Our computer
educational institutions, employers           will check the
and others provide data to TCB                information


We pre-fill the tax return for the            If everything
taxpayer and make it available on             is OK, we’ll
the Internet or in the service office         refund in 5
                                              working days

The taxpayer reviews the return         If there are problems, we’ll
and confirms or corrects it or asks     inform the taxpayer via the
the information provider to             Internet what was wrong or
correct their information               what he or she has to do


                                                                       11
 7 reasons to file the Income Tax Return
          via e-Tax/e-Customs

 Saving time and nerves
 Income tax return is pre-filled
 Instant tax calculation
 Help within the reach of a phone call
 Money back within five working days
 No additional expenses for taxpayers
 Environment in Russian and English also available



                                                      12
 How to submit form TSD via e-
    Tax Board/e-Customs?
 TSD- income and social security return for
  companies
 Fill in manually
 Upload from a file




                                               13
      Who is obliged to use e-filing?


 Persons who are registered as VAT-liable
  persons for more than 12 months


 More than five lines are filled in on form TSD
  (income and social security return for
  companies) annexes 1, 2 or 3

                                                   14
    Revenue calculation, automatic entries

    One account for all tax types - all taxes are paid to one account
    (tax types can be differed by reference numbers)
 Tax accounting goes through the prepayment account - every
  person has its own prepayment account where the tax amounts
  paid by him/her are accrued and where the tax claims are
  deducted from
   Automatic payment and calculation of claims
    Tax refund process is automatic from the claim to the refund (incl
    risk analysis)
    The status quo and history of the person’s tax accounting is
    constantly visible on-line

                                                                         15
       e-Tax Board/e-Customs is popular
Statistics of the electronically filed tax returns:
 Corporate Income Tax and Employer Tax Returns – 97.4%
 VAT Returns – 98.1%
 Natural Person Income Tax Returns – 93.5%
 Customs Declarations – 99.8%


   E-Tax/e-Customs is the most frequently used service channel of the
   Estonian Tax and Customs Board – 95% of the clients have used it and
   the service was rated 4.5 on a 5-point scale
   (Data of the client satisfaction survey 2010)


                                                                      16
Thank you!

     risto.hinno@emta.ee
It is so simple
that even your
 grandmother
 understands !




                  18
 Nature of taxation…
 ... as Ministry of Finance of Louis XIV
 Jean Babtiste Colbert long tima ago already said

“Taxation is the Art that consists in so plucking the goose as to
obtain the largest possible amount of feathers with the smallest
possible amount of hissing”




                                                               19
Did You know that in real Eiffel tower is
 Empire State building after taxation?




BEFORE taxation    AFTER taxation

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posted:7/28/2011
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