This document has been provided by the
International Center for Not-for-Profit Law (ICNL).

ICNL is the leading source for information on th e legal environment for civil society and public
participation. Since 1992, ICNL has served as a resource to civil society leaders, government
officials, and the donor community in over 90 countries.

Visit ICNL’s Online Library at
https://www.icnl.org/knowledge/library/index.php
for further resources and research from countries all over the world.

Disclaimers Content. The information provided herein is for general informational and educational purposes only. It is not intended and should not be
construed to constitute legal advice. The information contai ned herein may not be applicable in all situations and may not, after the date of
its presentation, even reflect the most current authority. Noth ing contained herein should be relied or acted upon without the benefit of legal
advice based upon the particular facts and circumstances pres ented, and nothing herein should be construed otherwise.
Translations. Translations by ICNL of any materials into other languages are intended solely as a convenience. Translation accuracy is not
guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of
the document. Any discrepancies or differences created in the tr anslation are not binding and have no legal effect for compliance or
enforcement purposes.
Warranty and Limitation of Liability. Although ICNL uses reasonable efforts to include ac curate and up-to-date information herein, ICNL
makes no warranties or representations of any kind as to its a ccuracy, currency or completeness. You agree that access to and u se of this
document and the content thereof is at your own risk. ICNL discl aims all warranties of any kind, express or implied. Neither ICNL nor any
party involved in creating, producing or delivering this document shall be liable for any damages whatsoever arising out of access to, use of
or inability to use this document, or any e rrors or omissions in the content thereof.

Taxation Act 1
Passed 20 February 2002
(RT
2 I 2002, 26, 150),
entered into force 1 July 2002,
amended by the following Acts:26.11.2009 entered into force 01.01.2010 –
RT I 2009,
62, 405 ;
11.11.2009 entered into force 01.01.2010 –
RT I 2009, 56, 376 ;
22.04.2009 entered into force 01.06.2009 –
RT I 2009, 24, 146 ;
11.03.2009 entered into force 06.04.2009 –
RT I 2009, 19, 114 ;
28.01.2009 entered into force 01.05.2009 –
RT I 2009, 11, 67 ;
11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 ;
04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 ;
04.06.2008 entered into force 01.01.2009 –
RT I 2008, 27, 177 ;
04.06.2008 entered into force 10.07.2008 –
RT I 2008, 27, 177 ;
19.12.2007 entered into force 28.01.2008 –
RT I 2008, 3, 21 ;
14.06.2007 entered into force 14.07.2007 –
RT I 2007, 44, 316 ;
15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121;
24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69;
27.09.2006 entered into force 01.12.2006 – RT I 2006, 43, 325;

10.05.2006 entered into force 01.07.2006 – RT I 2006, 25, 186;
07.12.2005 entered into force 01.01.2006 – RT I 2005, 68, 528;
12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451;
28.09.2005 entered into force 01.01.2006 – RT I 2005, 54, 430;
20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193;
17.02.2005 entered into force 09.03.2005 – RT I 2005, 13, 66;
23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569;
18.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 568;
28.06.2004 entered into force 01.03.2005 – RT I 2004, 56, 403;
20.05.2004 entered into force 27.05.2004 – RT I 2004, 45, 319;
14.04.2004 entered into force 01.05.2004 – RT I 2004, 30, 208;
14.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 189;
13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188;
17.12.2003 entered into force 05.02.2004 – RT I 2004, 2, 7;
17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591;
10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554;
22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472;
11.06.2003 entered into force 07.07.2003 – RT I 2003, 48, 341;
04.12.2002 entered into force 01.04.2003 – RT I 2003, 2, 17;

11.12.2002 entered into force 01.01.2003 – RT I 2002, 111, 662;
18.12.2002 entered into force 31.12.2002 – RT I 2002, 110, 660;
19.11.2002 ente red into force 10.12.2002 – RT I 2002, 99, 581;
19.06.2002 entered into force 01.09.2002 – RT I 2002, 63, 387;
12.06.2002 entered into force 01.09.2002 – RT I 2002, 57, 358.

Chapter 1
General Provisions

Division 1
Definitions Used in Act

§ 1. Scope of application of Act
(1) This Act specifies the rights, obligations and liability of tax authorities and taxable
persons, the procedure for tax proceedings and the procedure for the resolution of tax
disputes.
(2) The provisions of this Act apply to all state taxes unless specific rules are
prescribed in an Act concerning a tax.
(3) The provisions of this Act apply to the duties payable upon import or export of
goods unless otherwise provided for in Council Regulation (EEC) No 2913/establ ishing
the Community Customs Code (OJ L 302, 19.10.1992, pp. 1–50).

(11.12.2008 entered into force 01.01.2009 – RT I 2008, 60, 331 )
(4) The provisions of this Act apply to local taxes insofar as the Local Taxes Act (RT
I 1994, 68, 1169; 1996, 49, 953; 1999, 16, 269; 101, 903; 2000, 33, 196; 81, 515; 2001,
11, 49; 2002, 44, 284; 110, 654) does not provide otherwise.
(5) If this Act or an Act concerning a tax is contrary to an inter national agreement
ratified by the Riigikogu
3, the provisions of the international agreement apply in the event
of taxation.

§ 2. Definition of tax
Tax is a single or periodic financial obligation which is imposed on taxpayers by an Act
or a rural munici pality or city council regulation issued pursuant to an Act for the
performance of the public law functions of the state or local governments or to obtain
revenue required therefor and which is subject to performance pursuant to the procedure,
in the amount and within the terms prescribed by an Act or a regulation, without direct
compensation to taxpayers therefor.

§ 3. Tax system
(1) The tax system in Estonia consists of state taxes provided for in and imposed by
Acts concerning taxes and local tax es imposed by a rural municipality or city council in
its administrative territory pursuant to law.
(2) The following are the state taxes:
1) income tax;
2) social tax;

3) land tax;
4) gambling tax;
5) value ad ded tax;
6) customs duty;
7) excise duties;
8) heavy goods vehicle tax.
(3) Local taxes are imposed by a rural municipality or city council regulation in
compliance with the conditions provided by the Local Taxes Act.
(4) The provisions of this Act concerning taxes also apply to contributions to funded
pensions and unemployment insurance premiums unless otherwise provided by the
Funded Pensions Act (RT I 2001, 79, 480; 2002, 23, 131; 44, 284; 102, 600; 105, 612;
111, 662) or the Unemployment Insurance Act (RT I 2001, 59, 359; 82, 488; 2002, 23,
131; 2002, 44, 284; 57, 357; 61, 375; 89, 511; 111, 663; 2003, 17, 95).

§ 4. Acts concerning taxes
(1) An Act concerning a tax is an Act which provides for a specific tax.
( 2) Taxpayers are required to pay only such state and local taxes as are prescribed by
law at the rates and pursuant to the procedure provided for in Acts concerning taxes and
in rural municipality or city council regulations.
(3) The following shall be provided for in an Act concerning a tax:
1) the name of the tax;
2) the object of taxation;

3) the tax rate;
4) the taxpayers;
5) the recipient of or place of receipt of the tax;
6) the due date or term for payment of the tax, and the period of taxation in the case
of periodic taxes;
7) the procedure for calculation and payment of the tax and supplementary
obligations accompanying the tax;
8) tax incentives that are available.

§ 5. Tax authorities
(1) The tax authority for state taxes is the Tax and Customs Board.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
(2) The tax authorities for local taxes are rural municipality and city governments or
other rur al municipality or city administrative agencies as provided in a tax regulation.
(3) A rural municipality or city may, pursuant to the provisions of the Local Taxes
Act, enter into a contract under public law with the local Tax Board office by which the
duties of the tax authority for a local tax are transferred to the regional structural unit of
the Tax and Customs Board.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(4)

Rural municipalities and cities may enter into a contract under public law among
themselves by which the duties of the tax authority for local taxes of the same type
established in the rural municipalities and cities which are party to the agreement are
transferred to an administrative agency of one rural municipality or city which is party to
the agreement.

§ 6. Taxable person
(1) The following are taxable persons:
1) taxpayers;
2) withholding agents;
3) other persons responsible for the tax liability of a taxpayer or withholding agent
pursuant to law or a contract.
(2) A taxpayer is a natural or legal person, or a state, rural municipality or city
agency, who is required to pay tax under the conditions and purs uant to the procedure
provided by law and to perform other monetary and non- monetary obligations imposed
on the person in connection with the tax liability.
(3) A withholding agent is a natural or legal person, or a state, rural municipality or
city agency, who is required to withhold the amount of tax payable by another person and
transfer such amount to the bank account of the tax authority under the conditions and
pursuant to the procedure provided by law and to perform other monetary and non-
monet ary obligations imposed on the person in connection with the obligation to
withhold.
(4) The law may prescribe cases where:

1) an association of persons or pool of assets without the status of a legal person is
treated as a taxpayer or withho lding agent;
2) several legal persons are treated as one taxable person;
3) a structural unit of a legal person or an enterprise belonging to a legal person is
treated as an independent taxable person.
(5) The state, rural municipalities and cities are not deemed to be taxpayers or
withholding agents unless otherwise provided in an Act concerning a tax.
(6) Foreign state or local government agencies, other institutions in public law and
representations of international organisations or co -operation programmes may also be
taxpayers or withholding agents.
(7) The provisions of this Act concerning legal persons apply to state, rural
municipality and city agencies and to taxable persons specified in subsections (4) and (6)
of this section, unless otherwise provided in respect of such agencies or persons.

§ 7. Passive legal capacity and active legal capacity of taxable persons
(1) The corresponding provisions of the General Part of the Civil Code Act apply to
the passive legal capacity, active legal capacity and legal representation of taxable
persons in the event of taxation, unless otherwise provided by this Act or an Act
concerning a tax.
(2) The obligations, arising from this Act or an Act concerning a t ax, of minors or
other natural persons with restricted active legal capacity shall be performed in the name
thereof by the legal representatives of such persons. Minors of 15- 18 years of age whose
active legal capacity has been extended shall perform oblig ations provided for in this Act
or an Act concerning a tax independently if such obligations arise from transactions
which the minor may enter into personally.

(3) The rights and obligations of state, rural municipality and city agencies and
taxable persons specified in subsections 6 (4) and (6) of this Act as taxpayers or
withholding agents shall be exercised by the heads of such agencies or other authorised
persons within the limits of the competence provided by the statutes of the agency, the
partnership agreement or other legislation regulating the activities of the taxable person.

§ 8. Obligations of legal representative and administrator of assets
(1) The legal representative of a legal or natural person is required to ensure that the
pri ncipal’s monetary and non- monetary obligations arising from this Act or an Act
concerning a tax are performed within the set term and in full. Monetary obligations shall
be performed out of the assets of the principal.
(2) The manager of a civil law partnership or an association of persons without the
status of a legal person or the administrator of a pool of assets without the status of a
legal person is required to ensure that the monetary and non -monetary obligations which
are related to the assets of the association or pool of assets and which arise from this Act
or an Act concerning a tax are performed within the set term and in full. Monetary
obligations shall be performed out of the administered assets.
(3) If an association of persons wit hout the status of a legal person does not have a
manager, the obligations specified in subsection (2) of this section shall be performed by
the members of the association. A tax authority may address a claim for the performance
of an obligation to any mem ber of the association. If the assets of an association of
persons without the status of a legal person are administered by a person other than the
members of the association or the manager, this person shall perform the tax liabilities
related to the assets administered by the person.
(4) If a pool of assets without the status of a legal person does not have an
administrator, the co -owners of the pool of assets shall perform the obligations specified
in subsection (2) of this section. A tax authority may address a claim for the performance

of an obligation to any co-owner. If the economic benefits (subsection 94 (3)) related to a
pool of assets without the status of a legal person are not in the possession of the
administrator or the co -owners or if i t is impossible to determine the co -owners, the
person who has actual control over the things and rights related to the pool of assets shall
perform the obligations specified in subsection (2) of this section.
(5) The obligations provided for in subs ections (1) and (2) of this section apply to
executors of wills, administrators of estates and, in the absence of an administrator of an
estate or executor of a will, successors who have accepted succession or persons who are
making an inventory of an esta te, bailiffs, compulsory administrators of immovables and
other persons on whom the obligation to administer the assets of a taxable person has
been imposed pursuant to law.

§ 8
1. Tax representative of non- resident
(1) The tax representative of a non- resident (hereinafter tax representative) is a person
to whom a corresponding activity licence has been issued by the tax authority for state
taxes and whom a non- resident may authorise to represent the non -resident for the
performance of the obligatio ns arising in Estonia from a Act concerning a tax or from this
Act. A legal person founded in Estonia or a branch of a foreign legal person entered in
the Estonian commercial register may act as a tax representative.
(2) All the rights and obligation s of a registered taxable person who is a non- resident
extend to the tax representative. The tax representative is required to ensure that the
principal’s monetary and non- monetary obligations arising from this Act or an Act
concerning a tax are performed within the set term and in full.
(3) A tax representative shall submit an application to the tax authority for state taxes
to be issued with an activity licence of a tax representative wherein the following details
are indicated concerning the tax representative:

1) name and address;
2) registration number;
3) area of activity and place of business.
(4) A tax representative must be solvent and have an impeccable reputation. A tax
representative must not have tax arrears. A tax representative shall submit security at the
request of the tax authority.
(5) The tax authority shall decide on the grant of an activity licence of a tax
representative within twenty calendar days as of the receipt of an application. When
decid ing on the grant of an activity licence, the person’s compliance with the
requirements specified in subsection (4) of this section shall be verified. The tax authority
may take the person’s performance of earlier obligations arising from Acts concerning
ta xes into consideration. The tax authority may request that the applicant furnish proof
concerning the applicant’s financial situation in order to verify the applicant’s solvency.
(6) The tax authority may suspend or revoke an activity licence if bank ruptcy or
liquidation proceedings have been initiated against the tax representative, if the tax
representative violates the obligations specified in subsection (2) of this section or if the
tax representative does not meet the requirements specified in su bsection (4) of this
section.
(7) The tax authority shall publish a list of tax representatives on its website.
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)

§ 9. Residence, seat, place of business and permanent establishment
(1) The terms “residence” and “seat” are used in this Act within the meaning of the
General Part of the Civil Code Act.

(2) A place of business is the place of the permanent and continuous business or
professional activities of a person, an association of persons without the status of a legal
person or a pool of assets without the status of a legal person.
(3) A permanent establishment is the place through which, whether in full or in part,
the permanent economic activities of a non -reside nt are carried out in Estonia. Non-
residents whose economic activities in Estonia are carried out through an authorised
representative pursuant to the provisions of the Income Tax Act (RT I 1999, 101, 903;
2001, 11, 49; 16, 69; 50, 283; 59, 359; 79, 480; 91, 544; 2002, 23, 131; 41, 253; 44, 284;
47, 297; 62, 377; 111, 662; 2003, 18, 105; 58, 387) also have a permanent establishment.

Division 2
Principal Obligations of Tax Authority

§ 10. Duties of tax authority
(1) A tax authority shall monitor co mpliance with this Act and with Acts concerning
taxes within the limits of the competence granted to the tax authority by law.
(2) The duties of a tax authority are:
1) to verify the correctness of the calculation and payment of taxes and to monitor
the payment of taxes and the application of tax incentives in the amount and pursuant to
the procedure provided by law;
2) to calculate and make an assessment of tax and interest due in the cases provided
by law and to return overpaid amounts and amounts to be compensated for;
3) to collect tax arrears;

4) to impose coercive measures and punishments permitted by law on persons who
violate an Act concerning a tax.
(3) A tax authority shall conduct proceedings in a straig htforward and efficient
manner without undue delay, avoiding superfluous costs and inconveniences, in
compliance with the general principles of administrative proceedings and ensuring that
the rights of participants in the proceedings are protected.

§ 11. Principle of investigation
(1) When verifying the correctness of the payment of taxes and making an assessment
of tax, a tax authority is required to take into consideration all facts relevant to the matter,
including facts which increase and facts which decrease the tax liability.
(2) A tax authority shall decide on the need to perform acts in order to verify the
correctness of the payment of a tax and on the type and extent of the acts and shall collect
evidence which is necessary to make a decision in the matter. When ascertaining facts
relevant from the point of view of taxation, a tax authority is not only restricted to the
requests and evidence submitted by participants in the proceedings.

§ 12. Right of discretion
If a tax authority is authorised by law to consider taking a measure or to choose between
different measures, the tax authority shall exercise the right of discretion within the limits
of its authorisation and in accordance with the general principles of justice, taking into
a ccount the relevant facts and weighing up legitimate interests.

§ 13. Hearing opinion of taxable person

(1) A taxable person has the right to submit the opinion and objections of the taxable
person to a tax authority before the issue of an administrative act concerning the taxable
person’s rights.
(2) The right specified in subsection (1) of this section need not be ensured for a
taxable person:
1) if prompt action is required to prevent damage arising from delay or to protect the
public interests, or
2) if the tax authority does not deviate from the information provided by the taxable
person in an application, request or explanation and there is no need for additional
information, or
3) if the resolution is not made against the taxable person, or
4) if notification which is necessary to enable opinions or objections to be submitted
does not enable the purpose of the administrative act to be achieved, or
5) in other cases provided by law.

§ 14. Provi ding information to taxable person
(1) At the request of a taxable person, a tax authority shall provide information
concerning taxes to be paid by the taxable person, the procedure for the calculation of
amounts of tax and the bases for making an as sessment thereof and explanations
concerning the completion of tax returns and the submission of challenges or requests.
(2) If necessary, a tax authority shall explain the rights and obligations of a taxable
person in tax proceedings to the taxable person.
(3) Taxable persons have the right to access information concerning themselves
which is collected by tax authorities and to copy or make extracts of such information. A

tax authority has the right to refuse to disclose information if disclosure thereof would
hinder the ascertainment of the truth in criminal proceedings.
(4) At the request of a taxable person, a tax authority is required to issue a written
certificate to the taxable person or make information electronically available to t he
taxable person concerning the size of tax arrears of the taxable person and the amounts of
tax and interest paid by or returned to the taxable person or set -off, the limitation period
for the compulsory execution (§ 132) of which has not expired.
(5) Taxable persons and other interested persons or agencies have the right to request
a certificate concerning the absence of tax arrears from a tax authority. The tax authority
is required to issue a certificate concerning the absence of tax arrears if t he tax arrears of
the taxable person in terms of all taxes administered by the same tax authority do not
exceed 100 kroons or if the tax arrears are being paid in instalments. A certificate
concerning the absence of tax arrears shall not be issued if the t axable person has failed to
comply with the obligation to submit a tax return on the due date for fulfilment of the
request and the tax authority has not assessed the amount of tax.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(6) A tax authority may make a notation on a certificate specified in subsection (5) of
this section stating the person to whom or for submission to whom the certificate is
issued and that the t axable person has failed to comply with the obligation to submit a tax
return within the term provided by law during the year in which the request is submitted
or during the preceding year.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(7) A certificate specified in subsection (5) of this section shall be issued or the issue
thereof shall be refused within five working days as of the receipt of a request. The issue
of a certificate shall not constitute forgiveness of tax arrears or deprive a tax authority of
the right to collect tax arrears.

§ 15. Provision of explanations and instructions for Acts concerning taxes
(1) The Ministry of Finance and tax authority f or state tax have the right to provide
explanations and instructions in order to explain and publicise this Act and Acts
concerning taxes for the purpose of ensuring the uniform application of the Acts.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) The explanations and instructions specified in subsection (1) of this section are
not binding on taxable persons.
(3) The explanations and instructions specified in subsection (1) of this section shall
be published on the website of the provider of the explanations and instructions or they
shall be published as a periodic printed publication. Publication thereof shall be ensured
by the provider of explanations and instructions.

§ 15
1. Processing of the personal identification code
Tax administrator shall, for the performance of his/her duties, have the right to process
the personal identification code without the consent of the data subject.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)

§ 16. Compensation for damage
Damage unlawfully caused to a taxable person or third party by a tax authority shall be
compensated for pursuant to the provisions of the State Liability Act (RT I 2001, 47, 260;
2002, 62, 377; 2003, 15, 86).

Division 3
Register of Taxable Persons

§ 17. Register of taxable persons
(1) The register of taxable persons (hereinafter register) is a state register as defined
in the Databases Act (RT I 1997, 28, 423; 1998, 36/37, 552; 1999, 10, 155; 2000, 50,
317; 57, 373; 92, 597; 2001, 7, 17; 17, 77; 24, 133; 2002, 61, 375; 63, 387; 2003, 18,
107; 26, 158) which is established by the Government of the Republic and maintained in
order to ensure the performance of functions imposed on tax authorities by law.
(2) Information concerning the fol lowing persons shall be entered in the register:
1) taxable persons;
2) persons who are insurable on the basis of the Social Tax Act (RT I 2000, 102,
675; 2001, 50, 285; 59, 359; 79, 480; 91, 544; 95, 587; 2002, 44, 284; 62, 377; 111, 662);
3) persons who are insured or who pay or withhold unemployment insurance
premiums pursuant to the Unemployment Insurance Act;
4) obligated persons, persons making contributions and withholding agents for
contributions as defined in the Funded Pensions Act;
5) tax representatives;
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)
6) non- residents in connection with the submission of a claim for refund.
(11.11.2009 entered into force 01.01.2010 –
RT I 2009, 56, 376 )

(21) In the register of taxable persons, a separate record shall be kept concerning the
financial rights and obligations of each taxable person arising from this Act or an Act
concerning a tax, and concerning the performance the rights and obligations by each
taxable person.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
(3) The chief processor of the register is the Tax and Customs Board.
(17.12.2003 entered i nto force 01.01.2004 – RT I 2003, 88, 591)
(4) Information shall be entered in and obtained from the register pursuant to the
procedure provided for in the statutes of the register which are approved by the
Government of the Republic and in accordanc e with the provisions of this Division, §§
27- 30 and the Social Tax Act.

§ 18. Registration requirement
(1) The following persons are required to register themselves in the regional structural
unit of the Tax and Customs Board prior to the commence ment of activities:
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
1) legal persons who are not to be entered in the commercial register, the non- profit
associations and foundations register or the register of religious associations;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
2) state, rural municipality or city agencies which are not to be entered in the state
register of state and local government agencies;
3) (Repealed – 04.06.2008 entered into force 01.01.2009 – RT I 2008, 27, 177)

4) foreign legal persons who or associations of persons or pools of assets without the
status of a legal person which are commencing economic activities in Estonia through a
permanent establishmen t which is not entered in the commercial register as a branch;5)
notaries, sworn translators and bailiffs.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(1
1) The following persons are required to register themselves in the regional
structural unit of the Tax and Customs Board within ten days as of the date on which the
tax liability arises:
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
1) non- resident employers, including sole proprietors, foreign missions, other
foreign agencies, international organisations and their representatives if not earlier
registered in the register of taxable persons or other register specified in subsection (1) of
this section;
2) partnerships, communities and other associations of persons not having the status
of a legal person.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) A regional structural unit the Tax and Customs Board s hall issue a certificate
concerning registration wherein information specified in subsection 19 (1), 21 (1) or (3)
or § 21
1 or § 22 of this Act shall be indicated.
(04.06.2008 entered into force 01.01.2009 –
RT I 2008, 27, 177 )

§ 19. Registration of legal person and agency

(1) In order to be registered, a legal person or agency specified in clause 18 (1) 1) or
2) of this Act shall submit an application to the regional structural unit of the Tax and
Customs Board and the following shall be set out in the application:
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
1) the name and address of the per son or agency;
2) the given name, surname, personal identification code (or, in the absence of a
personal identification code, the date of birth) and residence of each member of the
management body of the person or agency.
(2) A copy of the articles of association or partnership agreement of the legal person
or another legal act regulating the activities of the legal person shall be appended to the
application. Legal persons in public law shall include a reference to the place of
publication of the Act which is the basis for their activities. State, rural municipality and
city agencies shall add a copy of their statutes or other legal act regulating their activities.

§ 20. Sole proprietor
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(1) – (2) (Repealed 04.06.2008 entered into force 01.01.2009 –
RT I 2008, 27, 177 )
(3) The obligations provide d for in Acts concerning taxes also apply to sole
proprietors who have not been entered in the commercial register. Unless otherwise
provided by an Act concerning a tax, the rights provided for therein extend to such
persons as of their entry in the commer cial register.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591¸ 04.06.2008 entered into
force 01.01.2010 –
RT I 2008, 27, 177 )

(4) A sole proprietor who does not engage in enterprise within the meaning of § 14 of
the Income Tax Act may be deleted from the commercial register on the proposal of a tax
authority. Before making a proposal to the registrar of the commercial register, the tax
authority shall set a term for proving of engagement in enterprise
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121; 04.06.2008 entered into
force 01.01.2010 –
RT I 2008, 27, 177 )
(5) (Repealed – 04.06.2008 entered into force 01.01.2009 – RT I 2008, 27, 177)

§ 20
1. Registration, amendment of register data and deletion from register of notary,
sworn translator and bailiff
(1) A notary, sworn translator or bailiff shall be registered in the regional structural
unit of the Tax and Customs Board, the registry data thereof shall be amended and they
shall be deleted from the register on the basis of a directive of the Minister of Justice by
which the abovementioned person is appointed to office, his or her office is suspended or
he or she is released from office.
(2) The Ministry of Justice shall forward the directives specified in subsection (1) of
this section to the regional structural unit of the Tax and Customs Board within ten days.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

§ 21. Registration of permanent establishment
(1) In order for the permanent establishment of a foreign legal person s pecified in
clause 18 (1) 4) of this Act to be registered, an application shall be submitted to the
regional structural unit of the Tax and Customs Board and the following shall be set out
in the application:

(11.12.2008 entered into force 01.01.2009 – RT I 2008, 60, 331 )
1) the name and address of the foreign legal person;
2) the place of registration and the registration number or another code enabling
identification, if suc h information exists;
3) the area of activity, place of business and postal address in Estonia of the
permanent establishment;
4) the number of the bank account opened for the permanent establishment and the
name of the credit institution in which the bank account is held;
5) the given name and surname of the person responsible for the permanent
establishment, and his or her personal identification code (or, in the absence of a personal
identification code, date of birth) and residence.
(2) The following shall be appended to an application for registration of the
permanent establishment of a person specified in subsection (1) of this section:
1) a copy of the certificate of registration, an extract from the register or o ther
documents certifying the existence of the legal person;
2) a document certifying the authorisation of the person responsible for the
permanent establishment;
3) a copy of the articles of association or partnership agreement of the legal person,
certified according to the laws of the home country, or another document regulating the
activities of the legal person if submission of such documents upon registration of a legal
person is required in the home country of the legal person;
4) a specimen signature of the person responsible for the permanent establishment
which is notarised or officially certified by a tax authority;

5) if a tax representative has been designated, the written agreement between the tax
representative and the non- resident.
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)
(3) In order for the permanent establishment of a foreign association of persons or a
pool of assets without the status of a legal person specified in clause 18 (1) 4) of this Act
to be registered, an application shall be submitted to the regional structural unit of the
Tax and Customs Board and the following shall be set out in the application:
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
1) the name and address of the association of persons or pool of assets, if such
information exists;
2) a number or registry code enabling the association o f persons or pool of assets to
be identified, if such information exists;
3) the names and addresses of the members of the association of persons or the co –
owners of the pool of assets, except in the case specified in clause 4) of this subsection;
4) the names and addresses of members with management rights, the manager or the
administrator of assets if not all the persons specified in clause 3) of this subsection are
involved in the management of the association or administration of the pool of assets;
5) the area of activity, place of business and postal address in Estonia of the
permanent establishment;
6) the number of the bank account opened for the permanent establishment and the
name of the credit institution in which the bank account is held;
7) the given name and surname of the person responsible for the permanent
establishment, and his or her personal identification code (or, in the absence of a personal
identification code, date of birth) and residence.

(4) The following shall be appended to an application specified in subsection (3) of
this section:
1) a copy of the document which is the basis for the activities of the association of
persons or pool of assets without the status of a legal person;
2) a specimen signature of the person responsible for the permanent establishment
which is notarised or officially certified by a tax authority;
3) a document certifying the authorisation of the person responsible;
4) if a tax rep resentative has been designated, the written agreement between the tax
representative and the non -resident.
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)

§ 21
1. Registration of partnership, community and other association of persons not having
the status of a legal person
(1) In order to register a partnership, community or other association of persons not
having the status of a legal person specified in clause 18 (1
1) 2), an application is
submitted to the regional structural unit of the Tax and Customs Board which sets out the
following information concerning the partnership, community or other association of
persons not having the status of a legal person:
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
1) the name and address, if such information exists;
2) a number or registry code enabling identification, if such information exists;
3) the names and addresses of the members or co -owners, except in the case
specified in clause 4) of this s ubsection;

4) the names and addresses of members with management rights, the manager or the
administrator of assets if not all the persons specified in clause 3) of this subsection are
involved in the management of the association;
5) the area or areas of activity, place of business and the address;
6) the given name and surname of the responsible person and his or her personal
identification code (or, in the absence of a personal identification code, date of birth) and
residence.
(2 ) The following shall be appended to the application specified in subsection (1) of
this section concerning the partnership, community or other association of persons not
having the status of a legal person:
1) a copy of a document which is t he basis for the activity;
2) a document certifying the authorisation of the responsible person.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

§ 22. Registration of non -resident employers
(1) In order to register a non- resident employer specified in clause 18 (1
1) 1), an
application is submitted to the regional structural unit of the Tax and Customs Board
which sets out the following information:
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
1) the name of the non -resident employer;
2) the postal address of the employer in the home country, if any;
3) the postal address of the employer in Estonia, if any;

4) the name and postal address of the person representing the em ployer;
5) the signature of the employer or a person authorised by the employer.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) A copy of the articles of association or another document regulating the activities
of the non- resident employer shall be appended to an application if such document is
required. A document certifying the authorisation of the person representing the
employer, a specimen signature of the person which is notarised or officially certified by
the tax authority and, if a tax representative has been designated, the written agreement
between the tax representative and the non -resident shall also be submitted.
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)
(3) A non- resident employer has the right to be registered in the register of taxable
persons also before the tax liability arises by submitting the information and documents
listed in subsections (1) and (2) of this section.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25 , 193)

§ 23. Giving notification of changes in information
(1) Persons specified in §§ 18, 21
1 and 22 of this Act are required to notify the
regional structural unit of the Tax and Customs Board of the termination of their
activities, liquidation o f their permanent establishment and changes in the information
specified in §§ 19- 21 and §§ 21
1 and 22 within five working days.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) (Repealed – 04.06.2008 entered into force 01.01.2009 – RT I 2008, 27, 177)

(3) A sole proprietor shall notify the registrar of the commercial register of the
suspension of the activities of his or her enterprise, the seasonal and temporary activities
of his or her enterprise pursuant to subsection 3 (3) of the Commercial Code. In the cases
specified above, a person is deemed to be a sole proprietor for taxation purposes only
during the period he or she is engaged in the activities.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472; 17.12.2003 entered into
force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into force 18.11.2005 – RT I
2005, 57, 451; 04.06.2008 entered into force 01.01.2010 –
RT I 2008, 27, 177 )

§ 24. M aking of register entry
(1) Persons specified in §§ 18 and 22 of this Act shall be entered in the register as on
the date of submission of an application or as on a future date indicated in the application.
A person specified in subsection 18 (1
1) ma y be registered in the register also
retroactively by up to ten working days as of the date of the submission of the
application.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) Register entries concerning the termination of activ ities, liquidation of the
permanent establishment and changes in other register information regarding persons
specified in §§ 18 and 22 of this Act shall be made as on the date specified by the person
in the application. If the date specified in the applic ation arrived earlier than five working
days previously, the register entry shall be made as on the date of giving notification of
the change in the information.

§ 25. Refusal to make register entry

(1) If the information submitted by an applicant is incomplete or inaccurate, the Tax
and Customs Board has the right to refuse to make a register entry and:
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
1) to draw the attention of the applicant to the deficiencies in the application or
documents and to set a term for the deficiencies to be eliminated, or
2) to draw the attention of the applicant to the deficiencies in the application or
documents and to return the documents submitted for registration.
(2) If deficiencies are not eliminated within the term set by the Tax and Customs
Board, the application for registration shall be deemed not to have been submitted.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)

Division 4
Tax Secrecy

§ 26. Protection of tax secrecy
(1) The tax authorities and officials and other staff thereof are required to maintain
the confidentiality of information concerning taxable persons, including all media
(decisions, acts, notices and other documents) concerning the taxable persons,
information concerning the existence of media, business secrets and information subject
to banking secrecy, which is obtained by the authorities, officials or other staff in the
course of verifying the correctness of taxes paid, making an assessment of taxes,
collecting tax arrears, conducting proceedings concerning violations of tax law or
performing of other official duties (hereinafter tax secrecy). The obligation to maintain
tax secrecy continues after the termination of a servi ce relationship.

(23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569)
(2) Information subject to tax secrecy may only be disclosed with the written
permission of the taxable person or in the cases specified in §§ 27- 30 of this Act.
(3) Unless otherwise provided by law, the officials and other public servants
employed by the agencies which receive information concerning tax secrecy pursuant to
§§ 28- 30 of this Act or in the performance of their official duties and persons performing
public law functions are required to maintain the confidentiality of any information
concerning taxable persons which became known to them concerning the taxable person.
The obligation to maintain tax secrecy continues after the termination of a service
relationship.
(23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569)

§ 27. Public information
(1) The tax authorities may disclose the following information to anyone without the
consent of or without having informed a taxable person:
1) the date on which a taxable person who is registered with the Tax and Customs
Board pursuant to the provisions of §§ 18- 22 of this Act is entered in or deleted from the
register, the area of activity and place of business, in the case of the persons spe cified in
subsections 18 (1) and (1
1), information concerning of the responsible person and the
information concerning the commencement, suspension and termination of the
professional activities of a notary, sworn translator or bailiff;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
2) the date on which a person liable to value added tax or an excise
warehousekeeper is entered in or deleted from the register, and the registration number of
the person or warehousekeeper;

3) information concerning the residency of a taxpayer;
4) the size of tax arrears;
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
5) the size of tax arrears to b e paid in instalments and the duration of the schedule
for payment of the tax arrears;
6) the judgment in a tax dispute or the decision adopted in the adjudication of a
challenge against which an action is not filed during the term for filing an ac tion with a
court;
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
7) information concerning the income of a non- profit association or foundation
entered in the list of non- profit associations and foundations, including the gifts and
donations made to such persons, and information concerning the use of the gifts and
donations;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
8) information conc erning the submission of a tax return by a taxable person or the
failure of a taxable person to do so;
9) information concerning the gifts and donations made to a person who owns a
hospital, a political party or a university in public law and infor mation concerning the use
of the gifts and donations;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
10) information on offences if public interest in making such information public
outweighs the interest in keeping the information undisclosed, and making the
information public does not affect the ascertainment of the truth in criminal or
misdemeanour proceedings.

(23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569)
(2) In the case of tax arrears assessed by a tax authority, the tax arrears may be made
public after the date for the performance of the notice of assessment or liability decision
has arrived. If a notice of assessment or liability decisi on is contested, a corresponding
notation shall be made in the publication notice of the tax arrears. If an action is field
with a court, the notation shall be made at the request of the taxable person or in case the
tax authority has become aware of the f iling of the action in another manner.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

§ 28. Disclosure of information to other tax authorities or recipient of tax
(1) (Repealed – 17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
(2) The tax authority for a state tax may disclose information which is necessary for
verification of the correctness of the calculation and payment of a local tax, assessment of
the tax and collection of the tax to the tax authority for t he local tax.
(3) The Tax and Customs Board may disclose information to a rural municipality or
city government concerning taxpayers of whose income tax a part is transferred to the
corresponding rural municipality or city. The following information may be disclosed:
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
1) the given name, surname and personal identification code (or in the absence of a
personal identification code, the date of birth) of a taxpayer;
2) declared taxable income;
3) (Repealed – 20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

4) the name and personal identification code or registry code of the withholding
agent, and the income tax withheld from the taxpayer.
(4) The tax authority for a local tax may disclose information which is necessary for
verification of the correctness of the calculation and payment of a state tax, assessment of
the tax and collection of the tax to the tax authority for the state tax.

§ 29. Disclosure of information to state, rural municipality and city agencies and to
persons performing public law functions
A tax authority may disclose information subject to tax secrecy:
1) to preliminary investigators and prosecutors for the purposes of preventing and
detecting criminal offences, apprehending criminal offenders, investigating or hearing
matters subject to criminal proceedings, preparing the court hearing of matters subject to
criminal proceedings, conducting security checks and per forming other duties provided
for in the Security Authorities Act (RT I 2001, 7, 17; 100, 643; 2002, 61, 375; 2003, 23,
147);
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
2) to persons authorised to conduct proceedings in matters of misdemeanours for the
purposes of apprehending offenders, investigating or hearing matters and preparing the
hearing of matters;
3) to courts for the purposes of preparing the hearing of and hearing criminal, civil
and administrative matters or misdemeanours, and making decisions;
4) to bailiffs if the information is necessary for the performance of enforcement
actions;

41) to the Riigikogu committee to the extent which is necessary for the performance
of the functions imposed on the committee by law or by a resolution of the Riigikogu;
(14.06.2007 entered into force 14.07.2007 –
RT I 2007, 44, 316 )
5) to the Chancellor of Justice for the performance of funct ions provided for in the
Chancellor of Justice Act (RT I 1999, 29, 406; 2000, 92, 597; 2001, 43, 240; 58, 353;
2002, 30, 176; 57, 357; 2003, 20, 119; 23, 142);
6) to the Minister of Finance in order to estimate tax revenues and plan measures
ensuri ng that taxes are received, and in order to exercise supervisory control over the
legality and purposefulness of the activities of the tax authority;
7) to the Ministry of Finance for the performance of functions provided for in
Chapter 6 of the Competition Act;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
8) to the Financial Intelligence Unit for the prevention, detection and investigation
of money laundering or terrorist financing or criminal offences related to money
laundering or terrorist financing;
(19.12.2007 entered into force 28.01.2008 –
RT I 2008, 3, 21 )
9) to the Sta te Audit Office for the performance of functions provided for in the
State Audit Office Act (RT I 2002, 21, 117; 57, 356; 2003, 21, 121);
10) to the Public Procurement Office for the verification of the qualifications of a
tenderer within the meaning of the Public Procurement Act (RT I 2000, 84, 534; 2001,
40, 224; 50, 284; 2002, 23, 131; 47, 297; 61, 375; 63, 387; 87, 505; 99, 577; 2003, 25,
153);

11) to the Statistical Office for the performance of functions provided for in the
Official Statis tics Act (RT I 1997, 51, 822; 2000, 47, 289; 2002, 63, 387) when
conducting official statistical surveys;
12) to the Social Insurance Board for the award of pensions, benefits and allowances
provided for in the Social Welfare Act, the State Pension I nsurance Act, the State Family
Benefits Act and the Victim Support Act and for the implementation of EU legislation
coordinating social insurance;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
13) to a rural municipality or city government in connection with the award of a
benefit or provision of other material assistance to a natural person;
14) to the health insurance fund concerning a payer of social tax, an i nsured person or
a person applying for insurance cover or for the verification of the validity of the
insurance cover;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
15) (Repealed – 28.01.2009 entered into force 01.05.2009 – RT I 2009, 11, 67)
15
1) to the Estonian Unemployment Insurance Fund for the performance of the
functions provided for in the Labour Market Services and Benefits Act in connection
with the award of labour market benefits and the provision of labour market servi ces and
for the award of benefits on the basis of the Unemployment Insurance Act;
(28.01.2009 entered into force 01.05.2009 –
RT I 2009, 11, 67 )
16) to a market supervisory authority f or the organisation of supervision over the
safety of products and services;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

17) to the registrar of the commercial register as regards information relating to the
card register;
18) to the Labour Inspectorate for the performance of state supervision over
compliance with labour law legislation;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
19) (Repealed – 28.01.2009 entered into force 01.05.2009 – RT I 2009, 11, 67)
20) to the Ministry of Economic Affairs and Communications, dumping council and
the Government of the Republic for the conduct of anti -dumping investigations and
making of decisions on the implementation of anti -dumping measures;
(17.02.2005 entered into force 09.03.2005 – RT I 2005, 13, 66)
21) to a depositary of declarations of economic interests and persons authorised to
verify the declarations for the verification of the correctness of data submitted in a
declaration of economic inte rests in the case of suspicion of corruption;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
22) to the Financial Supervision Authority for the conduct of financial supervision
and inspection of persons according to the functions assigned to the Financial
Supervision Authority by law;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
23) to a legal person in private law for the performance of duties related to the
delivery of land tax notices;
(22.10.2003 entere d into force 01.01.2004 – RT I 2003, 71, 472)

24) to the Ministry of Finance for the performance of the duty of organising state
accounting and financial reporting according to the Accounting Act (RT I 2002, 102,
600);
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
25) to the Strategic Goods Commission for the performance of the functions provided
for in the Strategic Goods Act (RT I 2004, 2, 7);
(17.12.2003 entered into force 05.02.2004 – RT I 2004, 2, 7)
26) to the Polic e and Border Guard Board for the performance of the functions
provided for in the Aliens Act;
(14.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 189; 26.11.2009 entered into
force 01.01.2010 –
RT I 2009, 62, 405 )
27) to a court or to the Ministry of Finance or an authority within the area of
government of the Ministry of Finance which is specified by the Minister of Finance for
the performance of functions provided for in the St ate Legal Aid Act;
(28.06.2004 entered into force 01.03.2005 – RT I 2004, 56, 403)
28) to an artistic association for the verification of income received by creative
persons in connection with the grant of support for creative activity for creative persons
engaged in a liberal profession pursuant to the Creative Persons and Artistic Associations
Act;
(18.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 568)
29) to the state company founded for establishment and holding of liquid fuel stocks
for the determination of the market share of sellers of fuel, guaranteeing preparedness for
commencement of use of stocks an verification of payment of stockpiling fee based on
the Liquid Fuel Stocks Act;

(17.02.2005 entered into force 09.03.2005 – RT I 2005, 13, 66; 27.09.2006 entered into
force 01.12.2006 – RT I 2006, 43, 325)
30) to the Agricultural Registers and Information Board, information concerning the
payment of social tax by the number of employees and sums paid for each month for the
pur pose of monitoring the conformity of grant of support and the use of the support for
the intended purpose and performing the duties provided for in the European Union
Common Agricultural Policy Implementation Act (RT I 2004, 24, 163; 34, 236; 2005, 5,
16);
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
31) to the Competitions Board for exercise of supervision over competition relating to
determination of dominant position of an undertaking, agreements between undertakings,
concerted p ractices, decisions by associations of undertakings and proceedings
concerning a concentration.
(10.05.2006 entered into force 01.07.2006 – RT I 2006, 25, 186)

§ 30. Disclosure of information upon provision of international professional assistance
A tax authority may disclose information subject to tax secrecy without the consent of a
taxable person:
1) to the competent bodies of a foreign state in respect of a resident taxpayer in that
state concerning information relevant to tax proceedings unde r the conditions provided
for in an international agreement;
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

2) to bodies of the European Union and Member States thereof which are competent
to exchange information relating to taxable persons pursuant to the procedure prescribed
in the legislation of the European Union;
(14.04.2004 entered into force 01.05.2004 – RT I 2004, 30, 208)
3) (Repealed – 22.100.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

Chapter 2
Tax Claims and Liabilities

Division 1
General Provisions

§ 31. Financial claims and obligations arising from Acts concerning taxes
(1) The following financial claims and obligations may arise from an Act concerning
a tax or from this Act:
1) the obligation of a taxpayer to pay tax (tax liability);
2) the obligation of a withholding agent to withhold tax and to pay the withheld
amount of tax (obligation to withhold);
3) the right of a person to be refunded amounts of tax paid which exceed the
amounts of tax prescribed by law or other excess payments pursuant to § 33 of this Act
(claim for refund);

4) the obligation of a third party to pay the tax arrears of a taxpayer or withholding
agent (tax liability of thir d party);
5) the obligation of a taxable person to pay interest or a penalty payment or to
reimburse the costs of substitutive enforcement (accessory obligation).
(2) The claims and obligations specified in subsection (1) of this section aris e upon
the fulfilment of conditions provided by law, unless it is provided by law that an
administrative act of a tax authority is required for an obligation to arise.
(3) The claims and obligations specified in subsection (1) of this section termina te:
1) upon payment or set -off (§ 105);
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
2) upon fulfilment of a claim for refund (§ 106);
3) (Repealed – 04.12.2008 entered into force 01.01.2009 – RT I 2008, 58, 323)
4) upon expiry of the limitation period (subsection 33 (1), § 132);
5) upon forgiveness of tax arrears (§ 114);
6) in other cases provided by law.

§ 32. Tax arrears
For the purposes of this Act, tax arrears are any amounts of tax which a taxable person
has failed to pay by the due date, interest calculated on tax not paid by the due date, or
the amount of tax deriving from customs debt unpaid by the due date and the interest
calculated thereon.

§ 33. Claim for refund
(1) A taxable person has the right to the refund of the payment made to the tax
authority which exceeds the amount prescribed by law or administrative legislation or an
amount overpaid upon perfor mance or set-off of a monetary obligation (subsection 105
(1)), including a payment made before the due date for performance of an obligation
(subsection 105 (2)).
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(1
1) If the creation of a claim for refund is verified without the application for
fulfilment of the claim for refund (subsection 106 (1)), the provisions of subsections 106
(2), (2
1), (3) and (7) and § 107 apply.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(2) The right specified in subsection (1) of this section also extends to:
1) taxable persons who, pursuant to a liability decision, have paid a greater amount
of tax than prescribed by law;
2) taxable persons who have paid more interest, penalty payments, costs of
substitutive enforcement or other procedural expenses to a tax authority than prescribed
by l aw;
3) persons who have the right arising from law to be compensated for an amount of
tax or costs or to have an amount of tax or costs refunded to them by a tax authority.
(3) Claims for refund shall be fulfilled pursuant to § 106 and §107 of this Act.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(4) If a tax liability or an obligation specified in subsection (2) of this section is
reduced as a result o f an administrative act being amended or repealed or if the legal basis

for the payment of tax ceases to exist for other reasons, a taxable person may submit a
claim of refund arising therefrom within three years.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(5) A tax authority shall be notified of a claim for refund in a tax return or in any
other written document or a document submitted in a format which can be repr oduced in
writing.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 34. Pledging and seizure of claim for refund
(1) A claim for refund may be subject to seizure or subject to a claim for payment in
the course of enforcement proceedings similarly to a financial claim.
(2) A pledge may be established on a claim for refund pursuant to the procedure
provided by law. A taxable person shall submit a written notice to the tax authority
concerning the pledging of a claim for refund stating the name and address of the pledgor
and the pledgee and the category and amount of the claim for refund which is pledged.
The notice shall be signed by the pledgor and the pledgee. Pr ovisions concerning the
pledging of proprietary rights apply to the pledging of claims for refund.
(3) Claims for refund which will arise in the future may also be pledged. The
pledging of a claim for refund shall be valid as of the moment the notice is submitted to
the tax authority.
(4) The pledging or seizure of a claim for refund or the making of a claim for
payment against a claim for refund does not prevent the setting off of the claim for refund
against the financial obligations payable or the extension or suspension of the refund of
overpaid amounts pursuant to § 107 of this Act.

(04.12.2008 entered into force 01.01.2009 – RT I 2008, 58, 323 )

Division 2
Transfer of Claims and Obligations

§ 35. Legal succession
If the transfer of rights and obligations from one person to another pursuant to legal
succession is prescribed by law, all claims and obligations specified in subsection 31 (1)
of this Act, except the obligation t o pay a penalty payment, also transfer to the legal
successor.

§ 36. Transfer of tax liabilities by way of succession
(1) The claims and obligations specified in subsection 31 (1) of this Act, except the
obligation to pay a penalty payment, transfe r from a bequeather to the successor pursuant
to the procedure provided for in the Law of Succession Act (RT I 1996, 38, 752; 1999,
10, 155; 88, 807; 2001, 56, 336; 93, 565; 2002, 53, 336).
(2) Until acceptance of or refusal to accept an estate, the obligations arising from this
Act or an Act concerning a tax shall be performed in the name of the bequeather by the
administrator of the estate or the executor of the will or, in the absence thereof, by the
person making the inventory of the estate. The a bovementioned person shall perform the
financial tax liabilities of the bequeather from the funds of the estate.

§ 37. Transfer of tax liabilities upon transfer of enterprise or part thereof

In the event of transfer of ownership or possession of an enterprise or a part thereof, the
claims and obligations specified in subsection 31 (1) of this Act, except the obligation to
pay a penalty payment, which are related to the enterprise or to the organisationally
independent part thereof transfer to the transfer ee or recipient of possession pursuant to
the provisions of the Law of Obligations Act (RT I 2001, 81, 487; 2002, 60, 374).
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

Division 3
Liability of Third Party for Tax Liability of Other Person

§ 38. Liability of person who transfers enterprise or part thereof
A person who transfers an enterprise or a part thereof and the transferee are solidarily
liable for the payment of tax arrears pursuant to the provisions of the Law of Obligations
Act.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

§ 39. Liability of partner of general partnership or limited partnership and member of
association
(1) A partner of a general partnership and a general partner of a limited partne rship
are liable for payment of the tax arrears of the general partnership or limited partnership
pursuant to §§ 101 and 102 of the Commercial Code.
(2) A limited partner of a limited partnership is liable for payment of the tax arrears of
the partne rship pursuant to § 132 of the Commercial Code.

(3) A member of an association with full or additional liability is liable for payment
of the tax arrears of the association pursuant to the provisions of the Commercial
Associations Act (RT I 2002, 3, 6; 102, 600).

§ 40. Liability of legal representative, administrator of assets and tax representative
(1) If a legal representative, manager or administrator of assets violates the
obligations specified in § 8 of this Act intentionally or due to gross negligence, the legal
representative, manager or administrator of assets and the taxable person shall be
solidarily liable for the tax arrears incurred as a result thereof.
(2) A tax representative and the taxable person shall be solidarily liable for tax arrears
incurred as a result of failure to perform the obligations provided for in § 8
1 of this Act.
(3) If several persons are liable pursuant to subsection (1) of this section, they shall be
solidarily liable for the performance of the obligations.
(10.12.2004 entered into force 01.05.2004 – RT I 2003, 82, 554)

§ 41. Liability for tax arrears incurred as result of violations of tax law
(1) A person who is convicted of a tax offence provided for in the Penal Code (RT I
2001, 61, 364; RT I 2002, 86, 504; 105, 612; 2003, 4, 22) and the taxable person are
solidarily liable for tax arrears incurred as a result of the offence committed by the
person.
(2) If several persons are liable pursuant to subsection (1) of this section, the y shall be
solidarily liable for the performance of the obligations.

(3) Liability specified in subsection (1) of this section does not expire upon
termination of the tax liability but, after termination of the tax liability, the tax arrears
shall be collected by way of filing a civil action.

§ 42. Contractual liability
(1) A third party may, by a contract, assume liability for performance of the financial
obligations of a taxable person.
(2) A person specified in subsection (1) of this section and a taxable person shall be
solidarily liable for performance of the financial obligations of the taxable person.
Contractual liability does not deprive a tax authority of the right to file a claim against a
taxable person whose tax liability ari ses pursuant to law. Contractual liability does not
grant a tax authority the right to waive the collection of tax arrears from a legally taxable
person.
(3) Tax arrears shall be collected from a person specified in subsection (1) of this
section by way of filing an action pursuant to civil procedure.

Chapter 3
General Provisions of Tax Proceedings

§ 43. Participants in proceedings
The following are participants in tax proceedings:
1) a taxable person applying for an administrative act to be issued or a measure to be
taken (applicant);

2) the person at whom the administrative act or measure is directed (addressee);
3) another person whose rights are affected by the administrative act or measure
(third party);
4) the administrative authority which, according to an Act or regulation, is required
to submit its opinion regarding or its approval for legislation to be issued or for a measure
to be taken to the administrative authority which hears the matter.

§ 44. (Repealed – 17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)

§ 45. Application of Administrative Procedure Act
The provisions of the Administrative Procedure Act (RT I 2001, 58, 354; 2002, 53, 336;
61, 375; 2003, 20, 117) apply to tax proceedings unless otherwise prescribed by this Act,
an Act concerning a tax or the customs rules.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)

§ 46. Administrative acts of tax authority
(1) A tax authority issues orders, decisions and other administrative acts for the
performance of functions imposed on the tax authority by law. The administrative acts of
a tax authority shall be issued, amended and repealed pursuant to the provisions of the
Administrative Procedure Act unless ot herwise prescribed by this Act or an Act
concerning a tax.

(2) Administrative acts which restrict the rights of the addressee of the administrative
act or impose obligations on the addressee shall be in writing and be reasoned. Written
administrative acts shall be delivered pursuant to the provisions of Chapter 4 of this Act.
(3) An administrative act specified in subsection (2) of this section shall set out:
1) the name and address of the tax authority;
2) the given name, surnam e and position of the official who prepared the
administrative act;
3) the date of issue of the administrative act;
4) the name and address of the addressee of the administrative act;
5) the factual and legal basis for the issue of the administrative act;
6) the precept issued by the administrative act or the decision of the issuer of the
administrative act;
7) the term for compliance with the administrative act;
8) other information provided by law.
(4) An administrative act specified in subsection (2) of this section shall contain a
reference to the opportunities, term, procedure and place for challenging the
administrative act and to the sanctions imposed for and other consequences of failure to
comply with the administrative act, including the possible obligation to pay a penalty
payment or to reimburse the costs of substitutive enforcement.
(5) An administrative act of a tax authority shall be signed by the head or deputy head
of the tax authori ty or an official authorised by the head of the tax authority. An
electronic administrative act shall be signed in the manner established by a regulation of
the Minister of Finance pursuant to subsection 54 (3) of this Act.

(6) Upon signature by an authorised person, the number and date of the document
granting the right of signature and the place where the document can be reviewed shall be
indicated next to the signature. Documents granting the right of signature shall be
published on the website of the tax authority.
(7) A request to issue an administrative act or take a measure shall be granted or a
decision to deny the request shall be communicated within thirty days as of the date of
receipt of the request unless a different term is provided by law.

§ 47. Language of proceedings and interpreter or translator
(1) Tax authorities and taxable persons shall communicate in Estonian unless they
agree otherwise. Foreign languages shall be used in tax proceedings pursuant to the
procedure provided for in the Language Act (RT I 1995, 23, 334; 1996, 37, 739; 40, 773;
1997, 69, 1110; 1998, 98/99, 1618; 1999, 1, 1; 16, 275; 2000, 51, 326; 2001, 58, 354; 65,
375; 93, 565; 2002, 9, 47; 53, 337; 63, 387; 90, 521).
(2) The following may involve an interpreter or translator in tax proceedings:
1) a participant in the proceedings;
2) the tax authority at the request of a participant in the proceedings;
3) the tax authority without a request from a participant in the proceedi ngs if the tax
authority deems it necessary.
(3) The person who requests the involvement of an interpreter or translator by a tax
authority shall bear the costs of the involvement of the interpreter or translator unless
otherwise provided by an Act or regulation or unless the tax authority resolves otherwise.
The tax authority shall submit a claim for the reimbursement of costs in a corresponding
order, set a term for reimbursement and issue a warning stating that, in the event of

failure to reimburse the costs by the due date, the claim will be subject to compulsory
execution pursuant to §§ 128- 132 of this Act.

§ 48. Representative
(1) A participant in tax proceedings has the right to representation. Representation in
tax proceedings shall be based on the corresponding provisions of the General Part of the
Civil Code Act unless otherwise provided by this Act or an Act concerning a tax.
(2) A representative may participate in all procedural acts in the name of the principal
unless the personal participation of the principal is requir ed pursuant to law or due to the
nature of the act.
(3) A representative shall present a document certifying his or her authorisation at the
request of a tax authority and in the cases provided by law.
(4) A participant in proceedings has the r ight to appear for procedural acts together
with a representative. In such case, a document certifying authorisation need not be
presented. The testimony and requests of the representative shall be deemed to have been
given or submitted by the participant in proceedings unless the participant in proceedings
objects immediately to such testimony and requests.

§ 49. Removal
(1) An official of a tax authority shall not conduct proceedings in a matter if:
1) he or she is a participant in the proceedings or is acting as a representative of a
participant in the proceedings;
2) he or she is a relative (parent, child, adoptive parent, adopted child, brother, sister,
grandparent or grandchild), a relative by marriage (spouse’s parent, child, a doptive

parent, adopted child, brother, sister, grandparent or grandchild) or a family member of a
participant in the proceedings or of a representative of a participant in the proceedings;
3) he or she has a personal interest in the resolution of the matter or if other
circumstances give reason to doubt his or her impartiality.
(2) If circumstances specified in subsection (1) of this section become evident or if a
participant in proceedings submits an application for removal on the grounds li sted in that
subsection, an official of a tax authority is required to give notification thereof to the
official who has the right to appoint him or her to office or to head of the regional
structural unit of the Tax and Customs Board who shall decide on t he necessity of the
removal within three working days as of the submission of the application for removal.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(3) An administr ative authority which is required to submit an opinion regarding or
approval for an administrative act to be issued or a measure to be taken to a tax authority
is not deemed to be a participant in proceedings specified in subsection (1) of this section.
(4) A person shall not be removed if he or she cannot be substituted.

§ 50. Calculation, restoration and extension of term for proceedings
(1) The corresponding provisions of the General Part of the Civil Code Act apply to
the calculation of terms.
(2) If a term for proceedings, except a term for the submission of a tax return, is
allowed to expire with good reason, a tax authority may restore the term on its own
initiative or at the request of a participant in the proceedings.

(3) A reasoned request for the restoration of a term for proceedings shall be submitted
within two weeks after circumstances impeding performance of the procedural act cease
to exist.
(4) A term for proceedings shall not be restored if more than one yea r has passed
from the original due date prescribed for performance of the procedural act.
(5) A tax authority may, on the reasoned request of a participant in the proceedings or
on its own initiative, extend the term for proceedings designated by the tax authority if
the due date thereof has not yet arrived.
(6) A tax authority may make the restoration or extension of a term for proceedings
contingent on the provision of security. Security shall be provided and accepted pursuant
to §§ 120- 127 of this Act.
(7) A decision concerning the restoration or extension of a term for proceedings shall
be made by the head or deputy head of the tax authority performing the procedural act or
by a person authorised by the head of the tax authority.

§ 51. International professional assistance
(1) A tax authority may seek or grant international professional assistance.
(2) International professional assistance shall be sought and granted on the basis of an
international agreement, as well as pursuant to the procedure provided for in the
legislation of the European Union.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(2
1) The Tax and Customs Board may, with prior agreement with the competent
authority of a foreign state, exchange information regularly without prior request
(automatic exchange of information).

(11.12.2008 entered into force 01.01.2009 – RT I 2008, 60, 331 )
(2
2) The Tax and Customs Board may, on the basis of an agreement entered into with
the competent authority of a foreign state or in order to ensure that the correct tax liability
is determined in a foreign state, forward information spontaneously to the foreign state
concerned (spontaneous exchange of information).
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(3) The competence of ag encies granting professional assistance and the rights and
obligations of participants in proceedings shall be determined by domestic law.
(4) The format of the applications for international professional assistance and the list
of documents to be annexed to the applications shall be established by the Minister of
Finance.
(20.05.2004 entered into force 27.05.2004 – RT I 2004, 45, 319)

Chapter 4
Delivery of Documents

§ 52. Delivery of documents
(1) Documents, including administrative acts, summonses and notices, shall be
delivered against a signature, delivered by post or electronically or published in a
periodical publication. A tax authority may choose the manner of delivery unless a
mandatory manner of delivery is provided by law.
(2) If a document is addressed to several persons, the document shall be delivered to
all addressees unless the addressees have requested that the tax authority deliver the

document to only one of the addressees or have granted their consent thereto. A
document addressed to spouses may be delivered to one of the spouses unless delivery of
the document to both spouses has been requested from the tax authority.
(3) Documents addressed to an association of persons without the status of a legal
person or a pool of assets without the status of a legal person shall be delivered to the
manager of the association of persons or the administrator of the assets or, in the absence
of these persons, to members of the association of persons or co -owners known to the tax
authority.
(4) Documents addressed to persons with restricted active legal capacity shall be
delivered to their legal representatives.

§ 53. Delivery against signature
(1) Upon delivery by a tax authority, a document shall be delivered to a participant in
proceedings against his or her signature on a notice on which the time of delivery of the
document, if necessary the specific time, shall also be indicated.
(2) Documents shall be delivered to the residence, seat or place of busines s of a
participant in proceedings against a signature between 8 a.m. and 8 p.m. on working
days. A document may be delivered between 8 p.m. and 8 a.m. and on days off with the
written permission of the head of a tax authority. If permission is needed for delivery, the
permission shall be presented to the recipient of the document. If the abovementioned
requirements are not observed upon delivery but the recipient of a document does not
refuse to accept the document, the document shall be deemed to have been delivered.
(3) Upon delivery of a document to a representative of a participant in proceedings,
the document is deemed to have been delivered also to his or her principal. A document
is also deemed to have been delivered if it is delivered against a signature to a family
member of at least 10 years of age who lives together with the participant in proceedings.

(4) If a participant in proceedings or a person specified in subsection (3) of this
section refuses to accept a document, the person who delivers the document shall make a
notation on the document and certify it with his or her signature. A document bearing a
notation shall be returned to the tax authority and deemed to have been delivered to the
participant in proceedings.

§ 54. Delivery by post and by electronic means
(1) A document shall be delivered to a natural person residing in Estonia at his or her
residential address entered in the population register or at the address of which he or she
has informed the tax authorit y. If a natural person fails to give notice of a change to his or
her address, the tax authority has the right to send a document to the last address known
to the tax authority.
(2) A document shall be sent to a legal person or agency at the address entered in the
register. Persons or agencies who are not entered in the register shall receive documents
at the address of which they have informed the tax authority.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(3) At the request of a participant in proceedings, a document shall be sent to an email
address indicated by the participant. The Minister of Finance shall, by a regulation,
establish requirements for the for mat of and signature for documents submitted to a tax
authority for state taxes by electronic means and other requirements for electronic
communication in tax proceedings.
(4) If a document is delivered electronically, the addressee has the right, if necessary
to request that the document be delivered on paper at a later date.
(5) A document shall be delivered to a taxable person residing or located in a foreign
state by registered post at the address of which the taxable person has informed the tax
authority or by electronic means in cases provided by law. If the residence or seat of the

person is not known, the document shall be delivered to the person through a competent
administrative agency of the foreign state. If a taxable person residing or located in a
foreign state has a permanent establishment or a representative in Estonia, documents
shall be delivered to the address of the permanent establishment or to the representative.
(11.11.2009 entered into force 01.01.2010 –
RT I 2009, 56, 376 )
(6) A document sent to a legal person or agency by ordinary mail at the address
entered in the register shall be deemed to have been delivered after five days have passed
since the do cument was sent within Estonia and after thirty days have passed since the
document was sent abroad. A document sent to a legal person or agency by registered
mail at the address entered in the register shall be deemed to have been delivered when
the posta l service provider has delivered it at the abovementioned address or has left a
notice concerning the arrival of the registered mail.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 6 0, 331 )

§ 55. Delivery through periodical publication
If there is no information concerning the address of a participant in proceedings, or if the
participant in proceedings does not reside or is not located at the address entered in the
register or know n to a tax authority and his or her actual whereabouts are unknown, and
if it is not possible to deliver a document in any other manner, the tax authority may
publish the resolution contained in the document in the official publication Ametlikud
Teadaanded
4 . The resolution contained in the document shall be published at least twice
and with an interval of not less than two weeks. The resolution contained in the document
is deemed to have been delivered on the date following the date on which it is published
for the second time.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

Chapter 5
Obligation of Taxable Person to Co- operate in Tax Proceedings

§ 56. Obligation of taxable person to co- operate
(1) A taxable person is requir ed to notify a tax authority of all facts known to the
taxable person which are or may be relevant for taxation purposes.
(2) A taxable person shall keep records of facts relevant for taxation purposes,
provide explanations, submit returns and other evidence and preserve such returns and
evidence for the term prescribed by law. If a mandatory type of evidence is provided by
law, a taxable person may only use such type of evidence as proof.
(3) A taxable person shall not prevent a tax authority f rom performing procedural
acts.

§ 57. Obligation to keep accounts and to keep records
(1) A taxable person shall keep accounts in the cases and pursuant to the procedure
provided for in the Accounting Act (RT I 1994, 48, 790; 1995, 26–28, 355; 92, 1604;
1996, 40, 773; 42, 811; 49, 953; 1998, 59, 941; 1999, 55, 584; 101, 903; 2001, 87, 527;
2002, 23, 131).
(2) An Act concerning a tax may prescribe cases where:
1) in addition to keeping accounts, a taxable person must keep records of fac ts
relevant for taxation purposes (hereinafter accounting for taxation purposes);
2) a taxable person who is not required to keep accounts according to the
Accounting Act must keep accounts.

(3) The keeping of accounts and accounting for taxation purposes shall be organised
in a manner which enables an overview to be obtained within a reasonable period of time
of the conduct of transactions and of facts relevant for taxation purposes, including
revenue, expenditure, assets and liabilities.
(4) If accounting records or accounting records for taxation purposes are not in
Estonian, a tax authority may demand that the relevant documents be translated into
Estonian. If little -known abbreviations, symbols or keywords are used in the account ing
records or accounting records for taxation purposes or if other circumstances render it
difficult to understand the documents, the taxable person is required to submit a list of the
abbreviations, symbols and keywords and provide additional explanations if necessary.
(5) Accounting records for taxation purposes shall not be amended in a manner which
renders it impossible to determine the original content of the document or the time of
amendment thereof.
(6) Records may be kept electronically if it is ensured that documents, including
accounting records, created as a result of accounting are preserved for the term specified
in § 58 of this Act. In the case of conversion or amendment of electronic documents, the
legibility of the initial information shall be ensured. A taxable person who keeps
electronic accounts is required, at the request of a tax authority, to submit documents
created as a result of accounting on paper or in electronic form within a reasonable period
of time. Documents shall be legible. The conversion of documents preserved in electronic
form into electronic databases allowing access to legible information shall be made
possible during the entire term specified in § 58 of this Act.
(20.04.2005 entered into force 01.07.2005 – R T I 2005, 25, 193)
(7) If a taxable person is required to keep accounts or accounts for taxation purposes
pursuant to the procedure provided by legislation of a foreign state due to conducting
economic activities in the foreign state and if, as a res ult of the economic activities
conducted in the foreign state, a tax liability arises in Estonia and accounts or other

records have been kept in accordance with the requirements established by the legislation
of the state concerned, the results thereof shall be taken into consideration upon taxation.
(8) The requirements provided for in this section also apply to taxable persons who
are not required by law to keep accounts or accounts for taxation purposes but who
voluntarily keep accounts or accounts for taxation purposes.

§ 58. Obligation to preserve documents
Unless another term is provided by law, a taxable person is required to preserve
documents related to transactions and payments and other documents relevant for
taxation purposes for at least seven years as of 1 January of the year following the
preparation or receipt of the document or, in the case of files or dossiers, the making of
the last entry therein.

Chapter 6
Evidence

§ 59. Collection of evidence
(1) Evidence in tax proceedi ngs is any information collected with regard to the
matter, including information, documents and things obtained from taxable persons, third
parties and state, rural municipality and city agencies, facts established by observation
and expert opinions. A ta x authority shall decide, according to the functions imposed on
the tax authority by law and the right of discretion, which evidence needs to be collected
in a particular matter.

(2) A tax authority has the right to examine any documents relating to the economic
or professional activities of a taxable person or to the payment of taxes by a taxable
person, and to take inventory or control measurements of goods, materials, other assets,
work performed and services provided. The examination is divided into:
1) the examination of individual cases (§§ 60- 72);
2) general examination or tax audit (§§ 73- 81).
(3) In determining amounts of duty, checking the correct payment of duties or
preventing offences, customs officials have the right to use all the rights granted to them
by law for implementation of the customs rules. Customs officials who have good reason
to suspect a violation of a tax Act have the right to use all the rights granted to them by
law for the implementation of the cust oms rules upon determining the amount of duty
related to trade between the Member States of the European Union, international postal
consignments and persons moving from one Member State to another, upon checking the
correct payment of duties or upon preve nting offences.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)

§ 60. Requesting information from taxable persons
(1) A tax authority is entitled to obtain oral and written information from a taxable
person or a representative thereof in order to ascertain facts relevant to tax proceedings. If
necessary, a tax authority may require a taxable person or a representative thereof to
appear at the offices of the tax authority at the time designated by the tax authority in
order to provide information.
(2) In order to summon a person to an administrative agency, the tax authority shall
issue a written order which complies with the requirements specified in § 46 of this Act
and which sets out the place where and time at which the taxab le person is required to
appear, together with an explanation as to why the person has been summoned. If

necessary, a written order shall also be issued in other cases where information is
requested.
(3) If the authorised representative of a taxable person fails to provide information or
provides information which is contradictory or insufficient, the tax authority has the right
to contact the taxable person in order to obtain the information.
(4) Oral explanations shall be recorded in the minutes and signed by the person who
gives the explanations. If the person refuses to sign, a notation shall be made in the
minutes to this effect. If necessary, the tax authority shall explain the rights and
obligations of the taxable person to the taxabl e person and a notation concerning the
explanation shall be made in the minutes.
(5) Any documents submitted in electronic form to a tax authority for state taxes shall
comply with the requirements established by a regulation of the Minister of Finan ce
issued on the basis of subsection 54 (3) of this Act. If a document is submitted in
electronic form, the tax authority has the right, if necessary, to request that the document
be submitted on paper at a later date.
(6) A person specified in subse ction (1) of this section may, pursuant to § 50, apply
for extension of the term granted for the performance of an obligation stated in an order.

§ 61. Requesting information from third parties
(1) A tax authority has the right to request information from third parties, including
credit institutions, in order to ascertain facts relevant to tax proceedings. The
abovementioned persons are required to submit information unless they have the right to
refuse to disclose evidence or information pursuant t o law. If necessary, a tax authority
may require that a third party appear at the offices of the tax authority at the time
designated by the tax authority in order to provide information.

(2) Prior to requesting information from a third party, the tax authority shall approach
the taxable person for information unless the tax authority has no information concerning
the residence or seat of the taxable person or if the taxable person cannot be reached at
the address known to the tax authority or hinders facts relevant for the purposes of tax
proceedings from being ascertained, and in the case provided for in clause 72 (5) 6) of
this Act.
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121)
(3) In order to request information from a third party, the tax authority shall issue an
order in compliance with the requirements specified in § 46 of this Act which also sets
out the name of the taxable person in connection with whose tax matter information is
being collected and the reason for contacting the third party. If the person is required to
appear at the offices of the tax authority to give testimony, the time and place shall also
be indicated in the order. A person may, pursuant to § 50 of this Act, apply for extension
of the term granted fo r the performance of an obligation stated in an order.
(4) Oral explanations shall be recorded in the minutes pursuant to the provisions of
subsection 60 (4) of this Act.

§ 62. Submission of things and documents
(1) In order to ascertain fact s relevant to tax proceedings, a tax authority has the right
to request that a taxable person or third party present things and bearer securities or
submit documents in the possession of the person. If things and documents are requested
from third parties, the restriction provided in subsection 61 (2) of this Act applies.
(2) In order to ascertain facts relevant to tax proceedings, a tax authority has the right
to request that the taxable person present cash. Cash shall be presented at the location
th ereof.

(3) Documents and things specified in subsection (1) of this section shall be
submitted or presented in the offices of the tax authority, unless:
1) the addressee of the administrative act has granted consent to the examination and
ins pection of the things and documents at their location, or
2) the tax authority requires the addressee of the administrative act to submit the
documents by post if this does not cause excessive expense to the addressee of the
administrative act, or
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
3) it is impossible to convey the documents or things to the offices of the tax
authority or doing so would cause excessive inconvenience or expense to the addressee of
the administrative act.
4) the tax authority requires the addressee of the administrative act to submit
documents preserved in electronic form electronically.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(4) A written order shall be issue d concerning the obligation specified in subsection
(1) or (2) of this section:
1) if the request is addressed to a third party, or
2) if the addressee or a representative of the addressee is summoned to the offices of
the tax authority to perform the obligation, or
3) if the taxable person has failed to comply with an earlier request, or
4) in other cases when deemed necessary by the tax authority.
(5) A person may, pursuant to § 50 of this Act, apply for extension of the term
granted for the performance of an obligation stated in an order.

(6) The provisions of subsection 61 (3) of this Act apply to the issue of an order
specified in clause (4) 1) of this section. The provisions of subsection 60 (5) of this Act
extend to the electronic submission of documents to a tax authority pursuant to this
section.

§ 63. Requesting information from state, rural municipality and city agencies and from
chief and authorised processors of state databases
(1) A tax author ity has the right to request information relevant to tax proceedings,
including the submission of documents and presentation of things, from a state, rural
municipality or city agency. The abovementioned agencies are required to comply with
the request of a tax authority unless they have the right to refuse to disclose evidence or
information pursuant to law.
(2) A tax authority for state taxes has the right to obtain, without charge, information
from the chief or authorised processor of a state datab ase which identifies persons (given
name and surname or business name, personal identification code or registry code, or, in
the absence of a personal identification code, the date of birth) who concluded
transactions relevant to taxation during the period indicated in the request and also
information concerning the transactions concluded by such persons.
(3) Agencies specified in subsection (1) of this section are required to notify the tax
authority of any circumstances which render it impossible to comply with a request for
information or for submission of things or documents or due to which it is necessary to
extend the term for compliance with a request. Terms shall be extended pursuant to § 50
of this Act.
(4) State, rural municipality and city agencies are required to submit returns and other
documents to the tax authorities by electronic means. The Minister of Finance shall
establish the list of returns and documents to be submitted by state, rural municipality and
city agencies by electro nic means.

(11.12.2008 entered into force 01.01.2009 – RT I 2008, 60, 331 )

§ 64. Right to refuse to provide information or submit evidence
(1) The right to refuse to perform an obligation specified in §§ 60- 63 of this Act to
provide information or submit evidence exists:
1) for advocates in respect of circumstances which become known to them in
connection with the provision of legal assistance;
2) for doctors, not aries, patent agents and ministers of religion in respect of
information which becomes known to them in connection with their professional
activities;
3) for agencies which organise state statistical surveys and officials who conduct
such surveys i n respect of information which becomes known to them in connection with
a survey;
4) for auditors and persons engaged in the professional activities of an auditor,
pursuant to the provisions of the Authorised Public Accountants Act (RT I 1999, 24, 360;
2002, 21, 117; 53, 336; 57, 357; 61, 375; 2003, 23, 133);
5) for spouses, direct blood relatives, sisters or brothers of taxable persons,
descendants of sisters or brothers of taxable persons, and direct blood relatives or sisters
or brothers of spouses of taxable persons, unless such persons are required to provide
information in the given matter and submit documents in connection with their own tax
liability;
6) for persons in respect of questions to which giving an answer would mean that the
persons would incriminate themselves or a person specified in clause 5) of this subsection
in an offence;

7) if the provision of information or submission of evidence would violate the
confidentiality of messages sent or received by post, telegraph, telephone or other
commonly used means or the confidentiality of a state secret.
(2) Persons who assist persons specified in clauses (1) 1) -4) of this section in their
professional activities also have the right to refuse to disclose infor mation in respect of
facts which become known to them in the performance of their duties.
(3) If persons specified in clause (1) 5) of this section are requested to give testimony
or to submit or present documents or evidence, such persons shall be notified in writing
or orally of their right to refuse to perform the obligation. If oral notification is given, a
signature shall be obtained from the person.

§ 65. Making copies of documents and removal of documents and things
(1) A tax authority may make copies and extracts of documents submitted thereto by
a participant in proceedings and officially certify the accuracy thereof. Documents shall
be officially certified pursuant to the provisions of the Administrative Procedure Act.
(2) A tax authority may remove documents and things submitted thereto if:
1) the documents or things are necessary to resolve a tax matter and the tax authority
has reason to believe that such evidence may not be available later, or
2) it is necessary in order to make extracts or copies of the documents, or
3) the documents and things refer to a possible offence.
(3) A report shall be prepared concerning the removal of documents stating the names
of the documents, the number of documents and, in the event of files being removed, the
number of pages. A report shall be prepared concerning the removal of things stating a
description of the removed things and the number of removed things. The report shall be

signed by the person who prepared the report and persons who participated in the act. If a
participant in proceedings refuses to sign the report, the person who prepares the report
shall make a corresponding notation in the report. A report shall be prepared in duplicate
and one of the original copies shall be given to the participant in proceedings whose
things or documents were removed.
(4) Documents shall not be removed in the cases provided for in clauses (2) 1) and 2)
of this section if the participant in proceedings objects to their removal and bears the
costs of making copies or extracts of the documents. The accuracy of copies and extracts
shall be certified pursuant to the provisions of subsection (1) of this section and the
participant in proceedings shall sign beside the notation concerning certification. If the
number of certified copies or extracts is large, a report shall be prepared in which a list of
the documents of which copies or extracts were made shall be set out. The report shall be
signed by an official of the tax authority and the participant in proceedings.

§ 66. Reimbursement of expenses to third party
(1) Documented travel expenses and accommodation expenses incurred and average
wages which are not received due to performance of the obligations provided for in §§ 61
and 62 of this Act by a third party outside the residence thereof shall, at the request of the
third party, be reimbursed thereto. A tax authority shall, on the basis of an invoice
submitted thereto, pay for the making of copies or extracts in the amount of up to three
kroons per page of paper starting from the twenty -first page.
(2) A tax authority has the right to claim amounts paid to a third party for the
reimbursement of costs from a taxable person if the taxable person:
1) fails to comply with an order of the tax authority requesting the submission of
information, things or documents in the same matter, or

2) cannot be reached at the residence or seat of the taxable person or at any other
address of which the tax authority has been informed, or
3) evades the proceedings, or
4) hinders the process of ascertaining facts relevant for the purposes of tax
proceedings in another manner.
(3) A tax authority does not have the right to request the reimbursement of expenses
of a third party from a taxable person if the tax authority contacted the third party without
giving the taxable person the opportunity to submit information, except in the cases
specified in clauses (2) 2) -4) of this section.
(4) A tax authority shall, in an order, submit a claim for the reimbursement of
expenses to a taxable person, set a term for rei mbursement and issue a warning stating
that, in the event of failure to reimburse the expenses by the due date, the claim will be
subject to compulsory execution pursuant to §§ 128- 132 of this Act.
(5) Expenses specified in the first sentence of subs ection (1) of this section shall be
reimbursed in the amount and pursuant to the procedure established by a regulation of the
Government of the Republic.

§ 67. Penalty payment for failure to submit information, things or documents
(1) When setting a term for the performance of obligations provided for in §§ 60- 62
of this Act, a tax authority may issue a warning (§ 136) stating that a penalty payment
may be imposed for failure to perform an obligation within the term. A tax authority may
also issue a warning concerning the imposition of penalty payment to a taxable person
who fails to perform an obligation to submit reports or other documents arising from an
Act concerning a tax.

(2) If a person fails to perform an obligation imposed on the pers on by an
administrative act by the due date stated in a warning, the person shall pay the penalty
payment specified in the warning. The tax authority shall, in an order, submit a claim for
payment of a penalty payment to an obligated person, set a term for payment and issue a
warning stating that, in the event of failure to pay the penalty payment within the
specified term, the claim will be subject to compulsory execution pursuant to §§ 128- 132
of this Act.
(3) A penalty payment to enforce the perfor mance of the same obligation shall not
exceed 10 000 kroons the first time and 30 000 kroons the second time. Penalty payments
imposed to enforce the performance of the same obligation shall not exceed 40 000
kroons in total.

§ 68. Involvement of experts
(1) A tax authority may, on its own initiative or at the request of a taxable person,
involve an expert in proceedings. The participants in the proceedings shall be informed of
the name of the expert before the expert is involved unless it is necess ary to conduct
expedited proceedings in the matter.
(2) If grounds provided for in § 49 of this Act become evident, the expert is required
to remove himself or herself. A participant in proceedings may request the removal of the
expert on the same gr ounds. A request shall be submitted within five working days as of
the date of becoming aware of the identity of the expert. Thereafter, removal is permitted
only if it is proven that it was not possible to submit the request on time. The tax
authority sha ll make a decision regarding removal within five working days as of the date
on which a request for the removal of an expert is submitted by a participant in
proceedings or by the expert himself or herself.
(3) An expert shall present his or her opinion in writing. If deemed necessary by the
tax authority, the expert may be asked to be present during the procedural acts and, in

such case, the expert may give his or her opinion orally. An oral opinion shall be
recorded in the report of the procedural act and signed by the expert. Participants in
proceedings have the right to submit questions to an expert.
(4) An expert has the right to examine the materials which are necessary for the
performance of his or her tasks and to make proposals for amendment of the materials.
The expert is required to maintain the confidentiality of information subject to tax
secrecy which becomes known to him or her in connection with the performance of his or
her duties (§ 26). The obligation to maintain tax secrecy sha ll be explained to the expert
and the explanation shall be confirmed by his or her signature.

§ 69. Reimbursement of expenses relating to expert assessment
(1) Documented travel and accommodation expenses incurred by an expert as a result
of performing his or her obligations outside his or her residence shall be reimbursed to
the expert at his or her request and remuneration shall be paid for the expert assessment
carried out.
(2) The costs of an expert assessment carried out on the initiative of a tax authority
shall be borne by the tax authority.
(3) The costs of an expert assessment carried out on the initiative of a participant in
proceedings and at the expense of a tax authority shall be borne by the person on whose
initiative the ex pert is involved. The tax authority shall, in an order, submit a claim for
the reimbursement of expenses to a taxable person, set a term for reimbursement and
issue a warning stating that, in the event of failure to reimburse the expenses within the
specif ied term, the claim will be subject to compulsory execution pursuant to §§ 128- 132
of this Act.

(4) Expenses specified in subsection (1) of this section shall be reimbursed in the
amount and pursuant to the procedure established by a regulation of the Government of
the Republic.

§ 70. Meters and preventive measures
(1) In order to make an assessment of tax to be paid, to verify the correctness of tax
payments or to prevent an offence, a tax authority has the right to request that a taxable
per son:
1) install meters on receptacles, storage facilities or equipment;
2) seal receptacles, storage facilities and equipment, and gambling inventory if
gambling is being organised;
3) close off territories or parts thereof;
4) install equipment, including a cash register, enabling cash transactions to be
monitored.
(2) The installation of meters or equipment specified in clauses (1) 1) and 4) of this
section may be demanded if a taxable person has failed to comply with an obligation to
install a corresponding meter or equipment imposed on the taxable person by law.
(3) A tax authority may appoint an official who, during a term set by the tax
authority, has the right to be present at the place of business of a taxa ble person during
general working time or the working time of the enterprise for the purpose of monitoring
the use of a meter or equipment.
(4) Orders for the installation of meters or equipment enabling cash transactions to be
monitored, for monitor ing the use of meters or such equipment or for the application of
preventive measures shall be prepared in writing.

(5) A preventive measure shall be removed not later than on the working day
following the day on which the reason for application of the preventive measure is
removed or ceases to exist.
(6) A tax authority is required to compensate for any direct damage caused as a result
of the activities provided for in clause (1) 2) or 3) of this section if no offence on the part
of the taxpaye r is ascertained or if a preventive measure is not removed within the term
prescribed in subsection (5) of this section.

§ 71. Substitutive enforcement
(1) When setting a term for the performance of an obligation provided for in § 70 of
this Act, a tax authority may issue a warning (§ 136) stating that substitutive enforcement
will be applied in the event of failure to perform the obligation by the due date. The
person shall also be informed in the warning of the estimated size of the costs of
subst itutive enforcement and reference shall be made to the provisions on the basis of
which the costs of substitutive enforcement will be collected.
(2) If a taxable person fails to perform an obligation provided for in subsection 70 (1)
of this Act with in the set term or if performance of the obligation is necessary in order to
prevent an offence, a tax authority shall perform the necessary act itself or use the
assistance of a third party or a state, rural municipality or city agency to do so. The costs
of the act shall be borne by the person who failed to perform the obligation if a
corresponding written warning had been delivered to the person. The tax authority shall,
in an order, submit a claim for the reimbursement of costs to the person, set a term for
reimbursement and issue a warning stating that, in the event of failure to reimburse the
costs within the specified term, the claim will be subject to compulsory execution
pursuant to §§ 128- 132 of this Act.
(3) At the request of a person with r egard to whom a coercive measure is applied, the
official executing substitutive enforcement shall present his or her identification and

enforcement order. A third party shall present the enforcement order issued thereto by a
tax authority in order to carry out substitutive enforcement.
(4) The person or agency carrying out substitutive enforcement shall prepare a written
report concerning the act.

§ 72. Inspection and other procedural acts
(1) Officials of tax authorities have the right, in order to conduct inspections, to have
access to plots of land, buildings and premises where the business or professional
activities of a taxable person are carried out. In the course of an inspection, officials of
tax authorities do not have the right to conduct searches, open locked spaces or storage
rooms or enter a dwelling against the will of the persons residing therein even if the
business or professional activities of a person are carried out therein.
(2) Officials of tax authorities have the ri ght to inspect property owned or possessed
by persons not engaged in business or professional activities, including immovables,
buildings, ships, vehicles and other movable property, provided that the inspection does
not involve entry into or a search of t he dwelling or premises of the person against the
person’s will.
(3) Advance notice of the conduct of an inspection specified in subsections (1) and
(2) of this section shall be given within a period of time which enables the taxable person
to form a n opinion on the planned act. In urgent cases, advance notice of the conduct of
an inspection need not be given. Advance notice of the conduct of an inspection provided
for in subsection (2) of this section also need not be given if the tax authority is unable to
ascertain the residence or seat of the owner or possessor of the property. In order to
conduct an inspection specified in subsection (1) of this section, a written order which,
among other things, sets out the purpose of the inspection, shall be pr esented to the
taxable person or a representative thereof. If no written order is presented in order to

conduct an inspection, the taxable person has the right to request that the taxable person
be subsequently informed in writing of the grounds for the inspection.
(4) An inspection specified in subsection (1) of this section shall be conducted during
the working time of the enterprise or during general working time. Minutes shall be taken
of the course of an inspection and the facts established by th e inspection.
(5) In order to conduct an inspection, an official of a tax authority has the right to:
1) involve specialists and experts;
2) make extracts or copies of documents pursuant to the procedure provided for in §
65 of this Act;
3) take photographs of or record in another manner the inspected territory or things;
4) take inventory or control measurements of goods, materials and other property
and prepare plans or sketch maps of inspected territories or buildings;
5) remove documents and things pursuant to the provisions of § 65 of this Act;
6) request information concerning the economic or professional activities of the
taxable person to a limited extent for inspection purposes from persons on t he plot of land
or in the buildings or on the premises which are being inspected. The testimony shall be
recorded pursuant to the procedure provided for in subsection 60 (4) of this Act.
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121)
(6) Officials of tax authorities have the right to take samples from the fuel tanks and
elsewhere in the fuel system of motor vehicles to ascertain whether fuel used as motor
fuel is fiscally marked. The results of the procedural act shall be recorded.
(7 ) The tax authorities have the right to involve specialists in inspections and other
procedural acts if the assistance of a person who has specific expertise is required to
conduct the inspections or procedural acts. A notation concerning the involve ment of a

specialist shall be made in the report of the procedural act. The provisions of subsection
68 (4) of this Act apply to specialists.

Chapter 7
Tax Audit

§ 73. Objective and scope of tax audit
(1) The objective of a tax audit is to ascert ain all the facts relating to the tax liability
subject to audit, including both facts which increase and facts which reduce the tax
liability.
(2) A tax audit may cover one or several taxes or one or several periods of taxation or
be restricted to t he ascertainment of specific facts.
(3) In the course of a tax audit, facts relating to the tax liabilities of other persons may
be ascertained if the person subject to the audit is required to withhold tax on payments
made to such persons.
(4) A tax audit of a natural person may only be conducted if the natural person
operates as a sole proprietor or is a withholding agent.
(5) The provisions of this Chapter do not apply to verification of the correctness of
the payment of taxes carried o ut immediately after the acceptance of a customs
declaration.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

§ 74. Competence
(1) A tax audit shall be conducted by the tax authority competent to conduct
proceedings in the particula r tax matter.
(2) If it is necessary to substitute the controller, the Director General of the Tax and
Customs Board or the head of the regional structural unit may appoint another official of
the Tax and Customs Board to the position of controller.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(3) (Repealed – 17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
(4) Foreign taxation officials may be involved in the conduct of a tax audit if, in
connection with the tax matter subject to the audit, it is necessary to verify tax liabilities
which have arisen or which will arise in a foreign country and if the foreign state
guarantees that the confidentia lity of information subject to tax secrecy will be
maintained. The tax authority may participate in a tax audit conducted by a tax authority
of a foreign state with the consent of the competent agency of the foreign state.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

§ 75. Advance notice of tax audit
(1) A tax authority shall give notice of a tax audit and set out the scope of the tax
audit (subsection 73 (2)) in a letter which shall be delivered to the taxable person not later
than seven days prior to the beginning of the tax audit. If advance notification would
endanger the objective of the tax audit, the letter of notification shall not be delivered
prior to the beginning of the tax audit.

(2) The objective of a tax audit is deemed to be endangered if the tax authority has
reason to believe that, if the taxable person receives advance notice of the tax audit, the
taxable person will prevent access to documents or things relating to the business or
economic activities of the taxable person or destroy, falsify, counterfeit or damage in
another manner the documents or things.
(3) In addition to the provisions of § 46 of this Act, a letter specified in subse ction (1)
of this section shall set out the tax and period of taxation subject to the audit, the term for
the audit and the name of the official conducting the tax audit. The scope of and the term
for the audit may be changed later by a letter, if necessar y. The reasons for the extension
of the term of the audit or for another change burdening the taxable person shall be
provided in the letter. Subsection (1) of this section shall apply in the case of making a
change burdening the taxable person.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

§ 76. Commencement of tax audit
(1) At the beginning of a tax audit, the tax auditor shall present his or her
identification and the letter of notification if the letter was not delivered earlier.
(2) At the beginning of a tax audit, the date on and time at which the tax audit
commences shall be documented in writing.
(3) A tax authority has the right to postpone the be ginning of a tax audit with good
reason if the taxable person submits a reasoned request to that effect. The tax authority
shall decide whether a request is reasoned or not.

§ 77. Time and place of tax audit

(1) A tax audit shall be conducted during general working time or the working time of
the enterprise in a workroom or at a workplace the use of which is granted to the tax
auditor by the taxable person for the duration of the tax audit.
(2) If it is not possible for the taxable person to g rant the use of a workroom or
workplace to the tax auditor, documents may be submitted and things presented in the
dwelling of the taxable person or at the offices of the tax authority.

§ 78. Rights and obligations of taxable person during tax audit
(1) During a tax audit, the taxable person has the right to be informed of the facts
hitherto ascertained and the possible relevance of the facts in terms of taxation.
(2) The taxable person has the right to apply for the removal of the tax auditor on the
grounds provided for in § 49 of this Act.
(3) The taxable person is required:
1) to ensure that the tax auditor has access to information relating to the tax liability
subject to the audit;
2) to submit relevant documents and things to the tax auditor for examination and, if
necessary, give explanations concerning such documents and things;
3) if possible, to ensure, without charge, an appropriate workroom or workplace for
the tax auditor to conduct the tax audit.
4) to introduce to the tax auditor the information systems related to accounting
systems and accounting.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

§ 79. Collection of explanations, examination and removal of documents and things, and
other acts
(1) The tax auditor has the right to obtain explanations from the taxable person or a
person designated by the taxable person in the course of a tax audit. If the taxable person
or a person designated by the taxable person refu ses to provide explanations or evades a
tax audit, the tax auditor may question other employees of the taxable person who are
present. The explanations shall, if necessary, be recorded in a report.
(2) The tax auditor has the right to carry out inspe ctions, involve experts and
specialists, make extracts and copies of the examined documents and perform other acts
provided for in Chapter 6 of this Act, taking account of the specifications provided for in
this Chapter. Acts may be performed on the basis of oral orders, except in the cases
provided for in §§ 70 and 71 of this Act.
(3) The taxable person or a representative or employee of the taxable person shall be
involved in any inspection carried out in the course of a tax audit pursuant to subsec tion
72 (1) of this Act. The provisions of subsection 72 (3) of this Act do not apply to the
conduct of an inspection. If a specialist is involved, the taxable person shall be informed
of the name of the specialist and the grounds for his or her involvement.
(4) The tax auditor has the right to remove documents or things relevant to the matter
if elements of an offence become evident during the inspection or by agreement with the
taxable person.

§ 80. Closing interview
(1) At the end of a tax audit, the tax auditor shall conduct an interview with the
taxable person or a representative of the taxable person. An interview is not conducted at
the end of a tax audit in the case specified in subsection 81 (3) of this Act or if the taxable

person or a representative of the taxable person refuses to participate in an interview or if
no facts altering the tax liability are discovered as a result of the tax audit.
(2) In the course of an interview, the taxable person shall be informed of the result s of
the tax audit, disputable facts shall be discussed with the taxable person and he or she
shall be given the opportunity to provide explanations regarding such facts. At the request
of the taxable person, the tax auditor shall explain how the facts asc ertained in the course
of the tax audit may affect the tax liability of the taxable person. The interview may be
combined with the examination of the audit report. Officials of the tax authority who did
not participate in the tax audit may be involved in a n interview, along with experts and
specialists. Explanations given in the course of an interview shall be recorded in the
minutes if necessary.
(3) If elements of a misdemeanour or a criminal offence become evident in the course
of a tax audit, the tax authority shall inform the taxable person thereof and explain that
the offence will be heard and the facts necessary therefor will be ascertained in the course
of separate proceedings.

§ 81. Audit report
(1) At the end of a tax audit, the tax a uditor shall prepare an audit report setting out
all the factual information and legal facts ascertained in the course of the tax audit and
relevant for taxation purposes. If an expert or specialist is involved in the tax audit, their
participation shall b e indicated in the audit report.
(2) The taxable person or a representative of the taxable person has the right to
examine the audit report and, if the taxable person or representative does not agree with
the facts stated therein, to request that his or her dissenting opinion be added to the audit
report. A notation concerning the addition of a dissenting opinion shall be made at the
end of the audit report.

(3) The audit report shall not be examined and an interview shall not be conducted
prior to delivery of the administrative act issued as a result of the tax audit, if
examination would hinder the truth from being ascertained in criminal proceedings or tax
from being collected.
(4) The audit report shall not be examined if no facts alter ing the tax liability are
discovered as a result of the tax audit. A corresponding written notice shall be delivered
to the taxable person. The notice shall be considered to be equivalent to a notice of
assessment (§ 95) issued as a result of a tax audit and the provisions of §§ 101- 103 of this
Act apply to the amendment or repeal thereof.

Chapter 8
Tax Returns and Making Assessment of Tax

Division 1
General Provisions

§ 82. Use of information submitted by taxable persons as proof
Upon verification of the performance of the tax liabilities of a taxable person and upon
making an assessment of tax, a tax authority shall proceed primarily from tax returns
(subsection 85 (1)) submitted by the taxable person, the accounts kept by the taxable
person and othe r records kept by the taxable person concerning the activities of the
taxable person. If a tax authority has doubts concerning the accuracy of information
submitted by a taxable person, the tax authority shall collect supplementary evidence.

§ 83. Taking account of void transactions upon taxation
(1) Transactions which are contrary to law or good morals shall be taxed in the same
manner as lawful transactions. The consequences of unlawful activities shall result in the
creation of the same tax liabi lities as would arise as a result of lawful activities with
similar economic content.
(2) A transaction or act which is contrary to law or good morals may result in an
increase in tax liability, if an increase is prescribed by law.
(3) The fact of a transaction being void shall not be taken into account upon taxation
if the parties do not return that which was received as a result of the transaction or do not
restore the situation prior to the conclusion of the transaction in another manner.
(4) Ostensible transactions shall not be taken into account upon taxation. If an
ostensible transaction is entered into in order to conceal another transaction, the
provisions concerning the concealed transaction apply upon taxation.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

§ 84. Transactions and acts performed for purposes of tax evasion
If it is evident from the content of a transaction or act that the transaction or act is
performed for the purposes of tax evasion, conditions which correspond to the actual
economic content of the transaction or act apply upon taxation.

Division 2
Tax Return

§ 85. Tax return
(1) A tax return (hereinafter return) is taken to mean an income tax return, value
added tax return, excise duty return, customs declaration, social tax return, gambling tax
return, annual tax report or other document for the calculation of tax which is to be
submitted to a tax authority pur suant to an obligation to submit the document arising
from law.
(2) Documents the submission of which is prescribed by law or a regulation shall be
appended to a return.
(3) A tax authority has the right to issue reminders regarding the submiss ion of
returns and orders for the submission of returns.
(4) A person who submits a return is required to submit information which is correct
to the knowledge of the person and to certify the correctness of the information in
writing.

§ 86. Submiss ion and receipt of returns
(1) Returns shall be sent by post, on electronic data media or using electronic means
of data communication or shall be delivered to the offices of a tax authority or to another
place designated by a tax authority. A person may choose the manner of submitting a
return unless otherwise provided by law or a regulation.
(2) Cases where a certificate concerning the receipt of a return is to be issued or a
notation concerning the receipt of a return is to be made on the ret urn may be prescribed
by law or a regulation.

§ 87. Signing of return

(1) A return shall be signed by the taxable person or the legal or authorised
representative of the taxable person. A return shall be signed on behalf of a person with
restricted active legal capacity by the legal representative or guardian of the person.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
(2) An authorised representative of a natural person may sign a return in the cases
provided for in the cust oms rules and if the person is unable to sign the return due to
illness or trip abroad. The tax authority may request that the authorised representative
prove that the taxable person is unable to perform the obligations of the taxable person
due to one of the abovementioned reasons. The tax authority may request that the taxable
person sign the return after the hindering circumstances cease to exist.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472; 13.04.2004 entered into
force 01.05.2004 – RT I 2004, 28, 188)
(3) If a return in writing is signed by an authorised representative, a document
certifying authorisation shall also be submitted to the tax authority unless it has been
submitted earlier.
(4) If a return is submitted using electronic means of data communication, the
electronic signature shall be given in such a manner as to enable the identity of the person
who submitted the return and the time when the signature was given to be determined. An
electronic signature shall be g iven in the manner provided by the Digital Signatures Act
(RT I 2000, 26, 150; 92, 597; 2001, 56, 338; 2002, 53, 336; 61, 375) or established by a
regulation of the Minister of Finance pursuant to subsection 54 (3) of this Act.

§ 88. Calculation of amount of tax
(1) A taxable person shall calculate the amount of tax payable on the basis of a return.
A tax authority has the right to verify the amount calculated by a taxable person and, if
necessary, make an assessment of tax within the term specified in § 98 of this Act.

(2) If so prescribed by law or a regulation, a tax authority shall calculate the amount
of tax payable on the basis of a return and send the person a tax notice concerning the
payable amount. A tax notice is an administrative ac t which is in compliance with the
requirements provided for in § 46 of this Act and which is sent to a taxable person not
later than thirty days before the due date for the payment of tax. A tax notice is not issued
if the amount of tax is less than 50 kroons. A tax authority may also issue a tax notice
concerning an amount of tax calculated on the basis of a return submitted after the due
date for the submission of the return if the amount of tax is calculated based on the
information set out in the return.
(3) The provisions of §§ 101- 104 of this Act apply to the amendment and repeal of
tax notices specified in subsection (2) of this section, taking account of the specifications
provided for in subsections (4) -(6) of this section.
(4) A tax not ice specified in subsection (2) of this section may be amended or
repealed, either to increase or reduce tax liability, during the limitation period for making
an assessment of tax without taking account of the restrictions provided for in §§ 101- 104
of th is Act.
(5) Calculation errors discovered in a tax return or tax notice may be corrected before
expiry of the term for challenging the tax notice or if the term for filing a challenge is
restored. The abovementioned restriction does not apply if the tax notice can be amended
or repealed on other grounds.
(6) If a tax notice is amended or repealed due to facts reducing the tax liability, the
tax authority shall issue a new tax notice or make a decision concerning the repeal of the
tax notice. In order to amend a tax notice due to facts increasing the tax liability, the tax
authority shall repeal the tax notice and issue a notice of assessment (§ 95).

§ 89. Amendment of return

(1) If, before expiry of the limitation period for making an ass essment of tax (§ 98), a
taxable person finds that, due to mistakes or the insufficiency of the information in the
return submitted by the taxable person or on behalf of the taxable person, the amount of
tax declared is less than the amount of tax payable pursuant to an Act concerning a tax,
the taxable person shall immediately notify the tax authority thereof in writing. Acts
concerning taxes, the customs rules and regulations established on the basis of the
customs rules may prescribe cases where a taxabl e person is required to:
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)
1) request that a return be corrected or annulled;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
2) correct the amount of tax in retu rns submitted in the future;
3) submit a corrected return containing accurate information.
(2) The obligation specified in subsection (1) of this section also extends to legal
successors and administrators of estates of taxable persons.
(3) A taxable person who uses goods or services for purposes other than that due to
which the goods or services were subject to a tax incentive or tax exemption is required
to notify a tax authority thereof immediately and, pursuant to the provisions of s ubsection
(1) of this section, declare the amount of tax which would have been payable had the tax
incentive or tax exemption not been applied.

§ 90. Deficiencies in return
(1) If a return does not meet the requirements established by law or a regu lation, the
tax authority shall draw the attention of the person who submitted the return to the

deficiencies and, if necessary, set a term for the taxable person to eliminate the
deficiencies.
(2) If the deficiencies are not eliminated during the te rm set by the tax authority, the
return shall be deemed not to have been submitted.
(3) Deficiencies in customs declarations shall be eliminated pursuant to the procedure
provided for in the customs rules.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)

§ 91. Penalty payment for failure to submit return or corrections thereto
(1) If a return is not submitted by the due date prescribed by law, the tax authority
may set a term for the submission of the return and issue a warning (§ 136) stating that a
penalty payment may be imposed for failure to submit the return within the term set by
the tax authority.
(2) A penalty payment may also be imposed if a person has been reminded of the
obligation to submit a return before the due date for the submission thereof, and if a
taxable person fails to eliminate deficiencies from a tax return within the term set
pursuant to subsection 90 (1) of this Act and the tax authority issued a written warning
concerning the imposition of a penalt y payment when setting the term for the elimination
of the deficiencies.
(3) If a person fails to perform an obligation imposed on the person by an
administrative act by the due date stated in a warning, the person shall pay the penalty
payment speci fied in the warning. The tax authority shall, in an order, submit a claim for
payment of the penalty payment to the person, set a term for payment and issue a warning
stating that, in the event of failure to pay the penalty payment within the term, the cla im
will be subject to compulsory execution pursuant to §§ 128- 132 of this Act.

(4) If a tax authority sets a term for submission of the same return or for the
elimination of deficiencies in the same return, the penalty payment shall not exceed 20
000 kroons the first time and 30 000 kroons the second time. Penalty payments imposed
by a tax authority to enforce submission of the same return or corrections to the same
return shall not exceed 50 000 kroons in total.

Division 2
1
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)
Binding Preliminary Decision
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
1. Binding preliminary decision
By a binding preliminary decision (hereinafter preliminary decision), the Tax and
Cus toms Board provides, on the application of a taxable person, a binding assessment of
taxation of an act or set of acts (hereinafter in this Division act) to be performed in the
future.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
2. Refusal to provide preliminary decision
(1) A tax authority has the right to refuse to make a preliminary decision if:
1) application of legal provisions regulating the taxation of the act is explicit under
objective circumstances;

2) the act is hypothetical;
3) the act is aimed at tax evasion.
(2) The procedure provided for in this Division does not apply to determination of the
value of transactions concluded between the associated persons specified in subsection 50
( 4) of the Income Tax Act.
(3) The tax authority shall notify the applicant of the refusal to make a preliminary
decision and shall return the application within 15 calendar days as of the date of receipt
of the application.
(15.02.2007 entered into f orce 01.01.2008 – RT I 2007, 23, 121)

§ 91
3. Formal requirements for preliminary decision
(1) The requirements established with regard to administrative acts and provided for
in § 46 of this Act apply to preliminary decisions, taking into account t he specifications
provided for preliminary decisions in this Division. A preliminary decision may be
amended in order to correct obvious spelling mistakes or calculation errors therein.
(2) A preliminary decision shall be formalised in writing and it shall include:
1) data concerning the taxable person who may rely on the preliminary decision;
2) a list of the documents which are the basis for the preliminary decision;
3) a reference to the legal provisions with regard to appli cation of which the
preliminary decision is made;
4) assessment of taxation of the act described in the application;

5) a confirmation of the binding force of the preliminary decision and the term of
validity of the binding force.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
4. Binding force of preliminary decision
(1) A preliminary decision is binding for a tax authority if:
1) the act was performed during the term specified in the preliminary decision;
2) the performed act conforms to the description provided in the preliminary
decision in all circumstances significant in terms of taxation;
3) the legal provisions relevant for taxation purposes have not been substantially
amended before performance of the act.
(2) A preliminary decision which was made by fraudulent means or threats or by
influencing the tax authority in any other unlawful manner is not binding for the tax
authority. A tax authority shall declare a prelimina ry decision which was made by
fraudulent means or threats or by influencing the tax authority in any other unlawful
manner invalid.
(3) A taxable person is required to immediately notify the Tax and Customs Board of
performance of an act described in the preliminary decision.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
5. Application for preliminary decision

(1) An application for a preliminary decision shall be submitted in writing to the Tax
and Customs Board. An application shall include an exhaustive description of the
planned act and analysis of the circumstances significant in terms of taxation, as well as
an assessment of the applicant concerning the legal basis for the taxation of the act.
(2) In addition t o the information specified in subsection (1) of this section, an
application shall set out at least the following data:
1) the name of the body with which the application is filed;
2) the name, personal identification code or registry code , postal address and other
contact details of the applicant;
3) confirmation of the applicant that no grounds for the suspension of the processing
relating to the application as specified in subsection 91
9 (1) of this Act exist to his or her
knowle dge;
4) a list of documents and drafts of the documents relevant for performance of the
act described in the application and existing at the time of submission of the application;
5) the planned time for performance of the act.
(3) At the request of the tax authority, the applicant shall submit all documents, as
well as drafts of the documents, relevant for the performance of the planned act.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
6. State fee
The applicant shall pay state fee for review of an application for a preliminary decision
pursuant to the rate provided for in the State Fees Act.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
7. Deficiencies in application for preliminary decision
(1) If the application does not meet the requirements provided for in subsections 91
5
(1) and (2) of this Act, the documents of the act are not sufficient for provision of a
preliminary decision or the applicant has not paid the state fe e, the tax authority shall set
a term of up to fifteen days for elimination of deficiencies for the applicant. A tax
authority shall notify the applicant of the deficiencies in the application within fifteen
calendar days as of receipt of the application.
(2) In order to clarify the content of a planned act, a tax authority may require the
applicant to appear at the offices of the tax authority in order to provide explanations.
(3) If the deficiencies are not eliminated by the due date, the tax authority shall refuse
to review the application and return it to the applicant.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
8. Withdrawal of application
(1) The applicant has the right to withdraw the application before the making of a
preliminary decision. A notice of withdrawal of an application shall be in writing.
(2) The withdrawal of a challenge does not preclude submission of a new application
concerning taxation of the same act.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
9. Suspension of processing

(1) A tax authority may suspend the processing of an application for preliminary
decision if an act relating to the application or a similar act is being reviewed by way of
challenge procedure or is being heard in a court at the time of submission of the
application and the expected decision is of crucial importance in terms of taxation, or, if
tax proceedings are being conducted in a matter relating to the application, until entry
into force of the corresponding decision or termination of the proceedings.
(2) The tax authority shall notify the applicant of the suspension of processing within
seven calendar days as of the date of suspension of processing.
(3) The tax authori ty shall resume processing and review the application after the
circumstances impeding performance of a procedural act cease to exist. In such case, the
application is deemed to be submitted on the date on which the decision enters into force
or processing is terminated.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
10. Term for making of preliminary decision
(1) A tax authority shall make a preliminary decision within sixty calendar days as of
the date of receipt of an applica tion or elimination of the deficiencies in an application.
(2) A tax authority may extend the term for making a preliminary decision by a
written decision by thirty calendar days under significant circumstances.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
11. Right of recourse
(1) Upon refusal to review the application, the applicant has the right to file a
challenge to the tax authority pursuant to § 137 of this Act or to file an action with an

administrative court under the conditions and pursuant to the procedure provided by the
Code of Administrative Court Procedure.
(2) There is no right of recourse upon disagreement with the assessment provided by
the tax authority in the preliminary decision.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

§ 91
12. Disclosure of summary of preliminary decision
(1) The tax authority shall disclose the summary of a preliminary decision on taxation
of the acts of general importance and of the acts repeatedly described in applications on
its website.
(2) When disclosing the summary of a preliminary decision, a tax authority shall take
guidance from the obligation to maintain tax secrecy provided for in § 26 of this Act and
shall not disclose data which enable identification of persons involved in the act.
(3) An applicant may set out in the application which information he or she would not
reasonably desire to be disclosed.
(15.02.2007 entered into force 01.01.2008 – RT I 2007, 23, 121)

Divis ion 3
Notice of Assessment and Liability Decision

§ 92. Assessment of tax by tax authority
(1) A tax authority shall make an assessment of tax payable:

1) if a return is not submitted by the due date prescribed by law, unless otherwise
provided by law;
2) if a taxable person has submitted false information in a return resulting in the
amount of tax indicated by the taxable person in the return or the amount of tax
calculated by the tax authority on the basis of the information in the return being less than
the amount of tax which should be paid pursuant to an Act concerning a tax;
3) if a taxable person has submitted false information resulting in the amount of tax
to be refunded as calculated by the taxable person or on the basis of the information
submitted by the taxable person being more than the amount to be refunded pursuant to
an Act concerning a tax;
4) in other cases prescribed by law or a regulation.
(2) The provisions of subsection (1) of this section a lso apply if an Act concerning a
tax prescribes the payment of tax by way of purchasing revenue stamps and a tax
authority establishes that the amount of tax paid differs from the amount of tax payable
pursuant to law.
(3) Upon making an assessment of tax payable, a tax authority shall take into
consideration all the facts relevant to the particular tax matter which the tax authority
deems to be reliable.
(4) Upon making an assessment of tax, a tax authority is not required to take into
consider ation facts reducing the tax liability which have not been declared by the taxable
person by the due date for the submission of the tax return if the tax authority is not
aware of such facts without an expression of intention on the part of the taxable per son.

§ 93. Assessment of tax with resolutive condition

(1) If no tax audit has been conducted in a tax matter, the tax authority may make an
assessment of tax on the condition that the notice of assessment may be amended or
repealed as a result of further inspection or if more evidence is submitted (hereinafter
resolutive condition).
(2) The tax authority shall determine the period of validity of the condition in the
notice of assessment and set out the grounds for the conditional assessment of tax.
(3) During the period of validity of the condition, the restrictions provided for in
Division 4 of this Chapter do not apply to the amendment and repeal of the notice of
assessment.
(4) A taxable person may apply for the amendment or repeal of a notice of assessment
during the period of validity of the condition.
(5) A resolutive condition may be revoked by a written decision at any time. A
resolutive condition shall also be revoked if no facts altering the tax liability are
disc overed in a tax matter as a result of a tax audit. If a condition has not been revoked
earlier, its validity shall expire upon expiry of the limitation period for making an
assessment of tax.

§ 94. Assessment of tax by estimation
(1) A tax authorit y may, by way of estimation, establish facts which are the basis for
making an assessment of tax payable. Estimation is permitted if the written evidence
which is necessary to make an assessment of tax is incomplete, insufficient or unreliable
or has been destroyed or is missing and if it is not possible to establish the facts on which
the tax liability is based by means of any other evidence. Estimation is also permitted if
the expenditure of a taxpayer who is a natural person exceeds his or her declared i ncome
and if the taxpayer fails to provide evidence proving that the expenditure has been

incurred out of income which was taxed earlier or which is not subject to tax or out of
loans taken.
(2) Estimation shall be based on the information collected in a matter, as well as on
the business indicators and expenditure of the taxable person and comparisons with
information ascertained in other similar tax matters. The methods of estimation and
evidence used for estimation shall be set out in a notice of a ssessment.
(3) Upon estimation, economic benefits related to property shall be deemed to be in
the ownership of the owner of the property. Economic benefits are things, monetarily
appraisable rights and income or gains derived from a thing. If a pers on has actual control
over the property of another person and enjoys the economic benefits related to the
property in a manner which precludes the owner of the property from enjoying the
benefits, the economic benefits shall be deemed to be in the ownershi p of the possessor
for the purposes of making an assessment of tax.
(4) Economic benefits shall not be deemed to be in the ownership of the possessor if
the person who possesses proprietary rights which are in his or her name or a thing which
is used by him or her as a broker, representative, pledgee, lessee, commercial lessee or
usufructuary submits evidence concerning the ownership of the property and the identity
of the owner. If the possessor of the property fails to submit reliable evidence, such rights
or things shall be deemed to be owned by the possessor for the purposes of making an
assessment of tax.

§ 95. Notice of assessment
(1) A tax authority shall prepare a notice of assessment in order to make an
assessment of tax.
(2) A n otice of assessment is an administrative act which is in compliance with the
requirements provided for in § 46 of this Act. The notice of assessment shall clarify the

method by which assessment of the tax payable is to be made. If none of the evidence
submitted by a taxable person is taken into consideration upon making an assessment of
tax or if only some of the evidence is taken into consideration, the reasons therefor must
be set out in the notice of assessment.
(3) If several taxable persons are s olidarily liable for the payment of an amount of tax,
the tax authority has the right to issue a joint notice of assessment to such persons.
(4) A tax authority may submit a claim for the performance of an accessory obligation
to a taxable person in a notice of assessment. A claim may be submitted in a joint notice
of assessment even if the claim is not directed against all the taxable persons. In such
case, the person against whom the claim is submitted shall be indicated in the
administrative act.
( 5) A notice of assessment shall be delivered to the taxable person pursuant to the
procedure provided for in Chapter 4 of this Act not later than thirty days before the due
date for payment of the amount of tax, unless otherwise provided by law. A notice of
assessment by which the amount of duty related to the incurrence of a customs debt is
determined shall be delivered to the taxable person not later than ten days before the due
date for payment of the amount of duty. The notice of assessment may contain a warning
concerning the initiation of compulsory execution in the event of failure to perform the
obligation.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(6) The provisions concerning notices of assessment also apply to administrative acts
issued for the application of tax incentives or tax exemptions unless otherwise provided
by law.

§ 96. Liability decision

(1) In order to collect tax arrears from a third party who is liable for the performance
of obligations of a taxpayer or withholding agent pursuant to law, a tax authority shall
make a liability decision.
(2) The provisions of subsections 95 (2) -(5) of this Act apply to liability decisions,
t aking account of the specifications provided for in this section.
(3) In a liability decision, the basis for the application of liability and the methods of
calculating the amount of tax shall be indicated and a term for payment of the amount of
tax and for the performance of accessory obligations, which shall not be less than thirty
days as of the date of delivery of the decision, shall be set. If an amount of tax is assessed
by a notice of assessment which has not been delivered to the addressee of a liability
decision, a copy of the notice of assessment shall be appended to the liability decision
and the methods of calculating the amount of tax is not indicated in the liability decision.
(4) A liability decision may contain a warning concernin g the initiation of
compulsory execution in the event of failure to perform the obligation. A copy of a
liability decision shall be sent to a taxable person whose tax a third party is obligated to
pay.
(5) Unless otherwise provided by law, a liabilit y decision obligating a person to pay
an amount of tax may be made within the limitation period for making an assessment of
tax (§ 98). Liability decisions concerning persons specified in §§ 38- 40 of this Act may
be made only after collection is commenced in the manner provided for in clause 130 (1)
6) of this Act with respect to a taxpayer or withholding agent and if, as a result thereof,
the tax arrears have not been collected within three months, or after the taxpayer or
withholding agent is declared bankrupt.
(6) A liability decision is not made if:
1) no tax arrears have been incurred;
2) the limitation period for the collection of the tax arrears has expired;

3) the tax arrears have been forgiven.

§ 97. Rounding of amounts
Amounts of tax payable, amounts of claims for refund and amounts arising from
accessory obligations shall be rounded to full kroons unless otherwise provided by an Act
concerning a tax or the customs rules. Sums below 50 cents shall be omitted and sums of
50 cents or more shall be rounded to full kroons.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)

§ 98. Limitation period for making assessment of tax
(1) The limitation period for making an assessment of tax is three years. In the event
of intentional failure to pay or withhold an amount of tax, the limitation period for
making an assessment of tax is six years. A limitation period begins to run on the due
date for the submission of the tax return which was not submitted or which contained
information which caused an amount of tax to be calculated incorrectly.
(2) In the case of tax liabilities which do not involve an obligation provided by law to
submit tax returns, the limitation period for making an assessment of tax is one year. If an
amount of tax is not assessed or is assessed incorrectly due to a taxable person failing to
perform or performing unsatisfactorily the obligations imposed thereon by law, the
limitation period for making an assessment of tax is four yea rs. A limitation period
begins to run on 1 January of the year following the year during which the tax liability
arises.
(3) Acts concerning taxes may prescribe shorter limitation periods than those
provided for in subsections (1) and (2) of this sec tion.

(4) After the expiry of a limitation period, a notice of assessment shall not be issued
or amended in the matter concerned and any notice of assessment issued earlier in the tax
matter earlier shall not be repealed.
A notice of assessment is ma de during the limitation period if it is given to a postal
service provider before expiry of the limitation period.
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121)

§ 99. Suspension of limitation period
(1) The limitation period for making an assessment of tax is suspended:
1) if it is not possible to make an assessment of the tax due to force majeure within
the last six months of the limitation period, until the circumstances which prevent the
assessment of tax from being to made cease to exist;
2) for the time a notice of assessment is being challenged until the final decision
made in the matter enters into force;
3) from the date the tax audit commences until the date of delivery of the notice of
assessment o n the basis of the results of the tax audit or, if no facts altering the tax
liability are discovered as a result of the tax audit, until the date of delivery of the
corresponding written notice;
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121)
4) as of the preparation of a misdemeanour report until the date on which the
decision made in the matter enters into force or the date on which proceedings in the
matter are terminated;
5) as of the date on which criminal proceedings c ommence until the entry into force
of a court judgment or the date on which the criminal proceedings are terminated;6) for

one year as of the date of submission of a tax return which has not been submitted or
amendment of the submitted tax return if a taxable person submits or amends the tax
return less than a year before the expiry of the limitation period for making an assessment
of tax.
(04.12.2008 entered into force 01.01.2009 –
RT I 20 08, 58, 323 )
(2) If a taxable person has requested that the commencement of a tax audit be
postponed, the limitation period for making an assessment of tax is suspended as of the
date on which the tax audit would have commenced according to the initi al letter of
notification. In the case specified in clause (1) 3) of this section, the limitation period
expires not later than on 31 December of the year during which the closing interview of
the tax audit is conducted or the last tax audit activities are performed if the limitation
period specified in § 98 of this Act expires or expired during the same year.

§ 100. Non- assessment and non- collection of amounts of tax
(1) An amount of tax is not assessed and a notice of assessment is not issued if the
amount of tax is less than 50 kroons unless otherwise provided by an Act concerning a
tax or the customs rules.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)
(2) A tax authority has the right not to assess or collect an amount of tax if the tax
authority has ascertained that the expenses related to making an assessment of and
collecting the amount of tax exceed the amount of tax or that collection of the amount of
tax is hopeless due to the insolvency of the taxable person and th e tax authority does not
consider it expedient to submit a bankruptcy petition.

Division 4

Amendment and Repeal of Notices of Assessment

§ 101. Amendment and repeal of notices of assessment
(1) A notice of assessment may be amended or repealed:
1) with the consent or at the request of a taxable person, or
2) if the notice of assessment is prepared by an administrative authority which is not
competent to prepare a notice in the matter, or
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
3) if preparation of the notice of assessment was achieved by fraudulent means or
threats or by using other illegal means, or
4) in order to correct obvious spelling mistakes or calculation errors in the
administrative act, or
5) in other cases provided by law, except in the cases provided for in Division 4 of
Chapter 4 of the Administrative Procedure Act.
(2) In the case specified in clause (1) 1) of this section, a notice of assessment may be
amended or r epealed in order to reduce a tax liability only if the application for
amendment or repeal of the notice of assessment is submitted within the term prescribed
for challenging the notice of assessment or if a term which has expired is restored.
(3) Th e provisions of subsection (1) of this section also apply to administrative acts
by which the preparation, amendment or repeal of a notice of assessment is refused.
(4) The provisions of § 58 of the Administrative Procedure Act apply to violations of
procedural requirements and requirements for formal validity which could not have
affected the content of a notice of assessment.

§ 102. Amendment and repeal of notice of assessment if new facts or evidence become
evident
(1) A notice of assessmen t shall be amended or repealed due to new facts or evidence
becoming evident:
1) in order to increase a tax liability, or
2) in order to reduce a tax liability if the situation that the new facts or evidence
became known later was not caused by the intention of the taxable person or by
negligence on the part thereof.
(2) If facts reducing a tax liability become evident at the same time as new facts or
evidence resulting in the preparation or amendment of a notice of assessment which
in creases a tax liability, such facts shall be taken into consideration upon taxation.
(3) A notice of assessment which is prepared or amended as a result of a tax audit and
the repeal of which can no longer be applied for in challenge proceedings or
a dministrative court proceedings may be amended or repealed due to new facts or
evidence becoming evident only if such facts or evidence are ascertained in connection
with:
1) a misdemeanour provided for in §§ 152- 154 of this Act, which is committed
intentionally and concerning which a judgment has entered into force;
2) a criminal offence concerning which criminal proceedings have been
commenced;
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
(4) In making a decision to amend or repeal a notice of assessment on the bases
provided for in clause (3) 1) of this section, a tax authority shall take into consideration

whether the public interest that the amount of outstanding tax be assessed and collected
outweighs the person’s certainty that the administrative act remains in force, as well as
the gravity of the misdemeanour and other circumstances due to which a piece of
evidence or fact was not discovered in the course of the audit, including violation of
investigation methods by the tax authority.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

§ 103. Amendment or repeal of notice of assessment on other grounds
(1) A notice of assessment shall be amended or repealed:
1) due to the amendment or repeal of the preliminary administrative act based on
which the notice of assessment was prepared, or due to the issue of a new preliminary
administrative act in the matter, or
2) due to an event with retroactive ef fect, or
3) in order to prevent double taxation due to notices of assessment which preclude
each other, taking account of the provisions of international agreements.
(2) Notices of assessment which preclude each other are notices by which the same
amount of tax or the same tax incentive or tax exemption is imposed on a taxable person
several times, the same amount of tax is imposed on several persons or a tax liability for
one period of taxation is imposed on a person for several periods of ta xation.
(3) A notice of assessment specified in subsection (2) of this section may be amended
or repealed in order to reduce a tax liability if the same amount of tax is imposed on a
taxable person several times. If a tax incentive or tax exemption h as been applied several
times, a notice of assessment may be amended or repealed in order to increase a tax
liability if the multiple tax incentive or tax exemption was caused by false information
submitted by a taxable person.

(4) In the case provid ed for in clause (1) 2) of this section, the limitation period for
making an assessment of tax begins to run on 1 January of the year following the year
during which the event occurs if evidence pertaining to the tax liability has been
preserved.

§ 104. Application of provisions of this Division to other administrative acts
(1) Unless otherwise provided by law, the provisions of this Division concerning the
amendment and repeal of notices of assessment also apply to cases where a new
administrative act is issued as a result of the repeal of a notice of assessment.
(2) The provisions of §§ 101- 103 of this Act apply to the amendment and repeal of
liability decisions. A liability decision shall be repealed or amended even if the extent of
the obli gation of a person who is liable for payment of the tax arrears of a taxpayer or
withholding agent is amended as a result of the preparation, amendment or repeal of the
liability decision.

Chapter 9
Fulfilment of Tax Claims and Settlement of Tax Liabilities

Division 1
Payment and Refund

§ 105. Payment and set -off

(1) A taxable person is required to pay an amount of tax and amounts arising from
accessory obligations to a tax (§ 31) into the bank account designated therefor. In the
cases prescribed by an Act concerning a tax or by the customs rules, tax shall be paid to a
tax authority in cash or by way of purchasing revenue stamps by the due date provided
for in the Act concerning a tax or the customs rules or, in the cases prescribed by law, by
the due date designated by a tax authority. The provisions of this section shall not apply if
a taxable person submits a tax return (§ 85) during the prescribed term and the monetary
obligations of the taxable person can be set off against a claim for refund (§ 33).
(2) In order to ensure the performance of the future monetary obligations by the due
date, a taxable person has the right to make payments to the tax authority before the due
date for the performance of a monetary obligation or use the cl aim of refund (§ 33)
arising due to other reasons for covering future monetary obligations.
(3) On the due date provided for in the Act concerning a tax or the customs rules or,
in the cases prescribed by law, on the due date designated by the tax authority, the tax
authority shall set off the monetary obligations of a taxable person against his or her
claim for refund on the basis of a tax return (§ 33). Set -off shall take place on a
continuous basis on the due date for the performance of a monetary obligation without
the corresponding request of a taxable person.
(4) An amount of tax payable pursuant to a tax notice (§ 88) or assessed in a notice of
assessment (§ 95) shall be set off against a claim for refund submitted by a taxable person
within thirty days after the date of delivery of an administratice act if the taxable person
does not request earlier payment.
(5) In the case provided for in subsection (1) of this section, the date of receipt of the
amount payable in the bank account of the tax authority or in cash by the tax authority
shall be deem ed to be the date of payment. In the event of compulsory execution carried
out by a bailiff, the date of payment of an amount to the bailiff or the date of receipt of
the amount in the official bank account of the bailiff shall be deemed to be the date of
payment.

(6) The monetary obligations of a taxable person shall be performed or set off in the
order the obligations are created unless the taxable person applies for the exclusion of the
obligations specified in clauses 14) – 16) of this section from the set-off before the due
date for performance of the obligations. The claims with one and the same due date shall
be fulfilled on the basis of the following order:
1) contributions to mandatory funded pension;
2) unemployment insurance premium;
3) income tax withheld;
4) social tax;
5) personal income tax;
6) land tax;
7) customs duty;
8) gambling tax;
9) excise duties;
10) heavy goods vehicle tax;
11) income tax on a r esident legal person’s or non- resident legal person’s permanent
establishment;
12) value added tax;
13) local taxes;
14) interest;
15) penalty payments;

16) other liabilities.
(7) The order of performance of the liabili ties provided for in subsection (6) of this
section shall not be taken into account if a different due date for the performance of a
monetary obligation arises from an administrative act of a tax authority (§ 95 and § 111).
In this case the payments shall be made on the basis of the due date specified in the
administrative act of the tax authority.
(8) The obligation provided for in subsection (1) of this section may be performed
through a third party unless otherwise provided by an Act concerning a tax. A tax
authority is required to accept performance of the obligation by a third party (subsection
106(8)).
(9) The procedure for entry in the accounts, payment and refund of the claims and
liabilities administered by the tax authority for state taxes shall be established by a
regulation of the Minister of Finance.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 106. Fulfilment of claim for refund
(1) An a pplication for the fulfilment of a claim for refund (§ 33) shall be submitted to
the tax authority in a tax return or in any other written document or a document submitted
in a format which can be reproduced in writing together with the details of the bank
account of the taxable person.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(2) The amount which a person has the right to have refunded shall be refunded
within thirty days as of the receipt of an application unless another term is provided for in
an Act concerning a tax. A claim for refund shall be fulfilled immediately if the tax
authority has verified the correctness of the claim for refund earlier on the basis of

subsection 33 (1 1). In the case of a refund exceeding 10 000 000 kroons, a written
decision shall be made stating the acts performed in order to verify the exce ss payment
and the name of the official conducting the verification. The decision shall be signed by
the head of the regional structural unit of the Tax and Customs Board.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(2
1) If the tax authority calculates the amount of interest (§ 115) before the term for
fulfilment of the claim for refund, the tax authority shall set off the claim for interest
against the claim for refund before satisfaction of an application for fulfilment of the
claim for refund without setting a term for the payment of the claim for interest.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(3) If an application for fulfilment of a claim for refund is submitted prior to the due
date for the payment of tax, the overpaid amount shall be refunded within thirty days as
of the due date for payment of tax unless the ta x authority decides to fulfil the claim for
refund earlier.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(4) If a claim for refund is fulfilled by transferring an am ount to a taxable person’s
bank account located in a foreign state, the tax authority has the right to deduct the costs
of transferring the refunded amount from the refunded amount.
(5) An overpaid amount of tax shall be refunded from the place of re ceipt of the tax.
(6) If the size of a claim for refund does not exceed 50 kroons, the claim for refund
shall only be fulfilled on the basis of a written request submitted separately by the
entitled person. If no request is submitted, the tax authori ty shall keep the amount subject
to a claim for refund in order to cover future tax liabilities or set- offs of the taxable
person.

(7) If an application for fulfilment of a claim for refund is partially satisfied, a
reasoned written decision shall be delivered to the person within the term provided for in
subsection (2) of this section.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(8) At the request of a person entitled to submit an application for fulfilment of a
claim for refund, the tax authority shall use the claim for refund for the performance of
the monetary obligations of a third person to the extent specified in the application
(subsection 105 (8)).
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(9) The limitation period for submission of an application for fulfilment of a claim for
refund is seven years from the date of making the last amendment in the claim for refund.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 107. Suspension and extension of fulfilment of claims for refund
(1 ) A tax authority for state taxes has the right to suspend the fulfilment of a claim for
refund specified in § 106 of this Act if elements of a violation of this Act or Acts
concerning taxes have been established in the activities of the taxable pers on and criminal
proceedings or misdemeanour proceedings have been commenced in connection with the
violation.
(2) The fulfilment of a claim for refund shall be suspended until a judgment in the
misdemeanour proceedings or a court judgment in a criminal matter enters into force or a
ruling is made to terminate the criminal proceedings. A reasoned written decision shall be
made regarding suspension of the fulfilment of a claim for refund.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)

(3) If a claim for refund is not sufficiently proven, the tax authority may extend the
term for fulfilment of the claim by a reasoned written decision and set a term for the
person who submitted the claim for refund to submit additional proof. If proof is not
submitted within the set term, the tax authority shall make a decision not to refund the
overpaid amount. The provisions concerning notices of assessment (§ 95) apply to the
making of such decisions.
(3
1) A tax authority has the right to suspend the fulfilment of a claim for refund if the
taxable person has failed to submit a tax return (§ 85) by the due date of the fulfilment of
a claim for refund. A claim for refund shall be fulfilled within thirty days as of the
submission of a tax return.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(4) If it becomes evident after the fulfilment of a claim for refund that the fulfilment
had no legal basis, the tax authority shall make a decision to recover the overpaid
amount. The provisions concerning notices of assessment apply to the making of such
decisions.
(5) In event of extension or suspension of the fulfilment of a claim for refund in the
cases provid ed for in this Act or an Act concerning a tax a taxable person has the right to
fulfilment of the claim for refund if the taxable person provides sufficient security.
Security shall be provided and accepted pursuant to §§ 120- 127 of this Act.
(07.12.2005 e ntered into force 01.01.2006 – RT I 2005, 68, 528)

Division 2
Set -off

§§ 108 – -110 (Repealed – – 04.12.2008 entered into force 01.01.2009 – RT I 2008, 58,
323 )

Chapter 10
Payment of Tax Arrears in Instalments, Writing Off and Forgiveness of Tax Arrears

§ 111. Payment of tax arrears in instalments
(1) A tax authority has the right, at the request of a taxable person with solvency
problems, to permit tax arrears to be paid in instalments. The payment of tax arrears in
instalments does not relieve a taxpayer from tax liability which become due.
(2) (Repealed – 04.12.2008 entered into force 01.01.2009 – RT I 2008, 58, 323)
(3) A taxable person shall submit a reasoned re quest to pay tax arrears in instalments
and a schedule for payment of the tax arrears.
(4) An official of a tax authority representing the state, a rural municipality or a city
in bankruptcy proceedings may, if a compromise is made, vote for an extension of the
term for the payment of tax arrears if a decision concerning the payment of tax arrears in
instalments has been made and the decision will enter into force on the date on which the
compromise is approved by a court.
(5) If the payment of tax arrears in instalments is state aid within the meaning of the
Competition Act, the tax authority shall follow the provisions of § 34
1 of the Competition
Act.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

(6) The Minister of Finance shall, by a regulation, establish the procedure for the
payment of arrears of state taxes in instalments.

§ 112. Decision on payment of tax arrears in instalments
(1) A tax autho rity shall make a decision to satisfy or to refuse to satisfy a request for
the payment of tax arrears in instalments within twenty days as of receipt of the request.
Upon making a decision, the tax authority may alter the schedule for payment of tax
arrea rs submitted by the taxable person. Refusal to satisfy and partial satisfaction of a
request shall be reasoned.
(2) Upon deciding to satisfy a request, the tax authority shall take into consideration
the financial situation and economic indicators of the taxable person, the taxable person’s
prior performance of obligations arising from Acts concerning taxes, the feasibility of the
payment of tax arrears in instalments and, if security is required, the reliability of the
security provided and the circumstances specified in subsection (4) of this section. The
tax authority has the right to request that documents which are necessary to establish
these circumstances be submitted. In such case, the tax authority shall make a decision on
the request within t en days as of the submission of the documents.
(3) The tax authority has the right to request security upon the payment of tax arrears
in instalments. Security shall not be requested from a taxable person who is bankrupt and
whose tax arrears are to be paid in instalments in order to make a compromise in
bankruptcy proceedings. A request for security shall be prepared in writing unless the
obligation to provide security arises from law. If security is required, a decision on the
payment of tax arrears in instalments shall be made within five working days as of the
date on which the security is provided.
(4) A tax authority has the right to deny a request for the payment of tax arrears in
instalments if:

1) the request is not reasoned or is insufficiently reasoned, or
2) the taxable person has been issued an order to pay the tax arrears within forty –
eight hours as of the date of receipt of the order (§ 129), or
3) the taxable person does not keep accounts pursuant to the pr ocedure provided by
legislation, does not submit tax returns or does not preserve documents, or
4) the taxable person fails to provide the security required or the tax authority does
not consider that the security provided is sufficient or trustwor thy, or
5) upon consideration of the compromise proposal made by the person who owes
arrears in bankruptcy proceedings, the tax authority finds that the financial situation of
the debtor does not enable the person to perform the obligations assumed as a result of
the compromise, or
6) other circumstances or grounds exist which cause the tax authority not to consider
the payment of the tax arrears in instalments to be expedient.

§ 113. Revocation of decision on payment of tax arrears in instalments
(1) If a taxable person does not meet the schedule for the payment of tax arrears, does
not pay taxes which become due during the period of validity of the schedule on time,
does not perform an obligation provided for in the Law of Proper ty Act (RT I 1993, 39,
590; 1999, 44, 509; 2001, 34, 185; 93, 565; 2002, 47, 297; 53, 336; 2003, 13, 64; 17, 95)
to keep a thing encumbered with a pledge in order to guarantee tax arrears or, in the event
of a decrease in the value of security, does not submit replacement security accepted by
the tax authority, the tax authority has the right to implement one or several of the
following measures:
1) to revoke the decision on the payment of tax arrears in instalments;

2) to revoke a reduction in the interest rate (subsection 117 (2));
3) to calculate interest retroactively at a rate established pursuant to subsection 117
(1) of this Act on the amount of tax which is being paid in instalments.
(2) A tax authority has the right to revoke a decision on the payment of tax arrears in
instalments made in order to make a compromise if the compromise is annulled pursuant
to the Bankruptcy Act (RT 1992, 31, 403; RT I 1997, 18, 302; 1998, 2, 46; 36/37, 552;
1999, 10, 155; 2000, 13, 93; 54, 353; 2001, 56, 336; 82, 488; 93, 565; 2002, 44, 284).

§ 114. Writing off and forgiveness of tax arrears
(1) A tax authority for state taxes shall write off:
1) the tax arrears of a legal person upon the dissolution of the legal person with
bankruptcy or liquidation proceedings or upon the compulsory dissolution of the legal
person without liquidation proceedings if no third party is liable for performance of the
tax liabilities or the tax arrears cannot be collected from such third party;
2) the tax arrears of a natural person upon the death or declaration of death of the
natural person if no estate exists which could be subject to a claim for payment, or tax
arrears to the extent exceeding the value of the inventoried estate from whi ch claims with
higher ranking have been satisfied pursuant to the provisions of the Law of Succession
Act.
(2) A tax authority for state taxes may forgive tax arrears in order to make a
compromise in bankruptcy proceedings. If a tax authority agrees to a compromise
proposal, the tax authority shall make a decision to forgive tax arrears which enters into
force on the date on which the compromise is approved.
(3) A tax authority for state taxes may forgive the tax arrears of a taxable person on
t he reasoned written request of the taxable person if collection of the tax arrears is

hopeless or would be unfair due to circumstances beyond the control of the taxable
person, including force majeure. The tax authority has the right to request that docume nts
which are necessary to establish the abovementioned circumstances be submitted. In such
case, the tax authority may make a decision within thirty days as of the submission of the
documents. The provisions of subsection 111 (5) of this Act apply to the forgiveness of
tax arrears.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(4) The Minister of Finance shall establish the procedure for the writing off and
forgivenes s of tax arrears by a regulation.

Chapter 11
Interest

§ 115. Interest payable by taxable person
(1) If a taxable person fails to pay tax by the due date prescribed by law, the taxable
person is required to calculate and pay interest on the amount of tax outstanding by the
due date. Interest shall be calculated as of the day following the day on which payment of
the tax was due pursuant to law until the date of payment or set -off, inclusive of the
latter.
(2) If, on the request of a taxable p erson, an amount of tax is refunded to the taxable
person or is transferred to cover other tax liabilities of the taxable person and if such
amount of tax is greater than that due to be refunded or transferred pursuant to an Act
concerning a tax, the taxab le person is required to calculate and pay interest on the
amount refunded to the taxable person or transferred to cover other liabilities without
basis. Interest shall be calculated as of the day on which the amount was refunded to the

taxable person or transferred to cover other tax liabilities until the date of payment or set-
off of the amount, inclusive of the latter.
(3) If a taxable person fails to pay interest pursuant to the provisions of subsections
(1) and (2) of this section, the tax author ity shall issue a claim for interest stating the
number of days delayed, the interest rate, the amount of interest payable and the term for
payment. The term shall not be shorter than ten days. The provisions concerning notices
of assessment (§ 95) apply t o claims for interest.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(4) A claim for interest may be issued in a notice of assessment, a liability decision, a
decision concerning fulfilment of a claim for refund or a warning simultaneously with the
assessment or collection of an amount of tax. If tax arrears are collected by way of
compulsory execution, interest shall be calculated by the tax authority or bailif f
conducting the enforcement proceedings. It is not necessary to issue a separate claim for
interest in order to collect interest calculated in the course of enforcement proceedings
and the minimum rate specified in subsection 119 (3) of this Act does not apply thereto.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(5) The provisions of subsection (1) of this section also apply if the taxable person
fails to make advance payments by the due date prescribed by law.
(6) Interest is received by the state.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 116. Interest payable to taxable person
(1) If a taxable person has paid an amount of tax, an amount of tax has been collected
from a taxable person or an amount of tax has been set off against a claim for refund

submitted by a taxable person on the basis of a notice of assessment or liability decision
and the amount of tax exceeds the amount of tax due according to an Act concerning a
tax, the tax authority is required to calculate interest on the overpaid amount for the
benefit of the taxable person. Interest shall be calculated as of the date of set -off or
payment until the amendment or repeal of the administrative act which was the basis for
the payment. If a taxable person has applied for the refund of the overpaid amount to his
or her bank account before the amendment or repeal of the administrative act which was
the basis for the payment, interest shall be calculated until the date of refund.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(2) If a tax authority fails to fulfil a claim for refund (§ 33) within the term prescribed
by law, the tax authority is required to calculate interest on the amount outstanding by the
due date. Interest shall be calculated as of the day on which the overpaid amount was to
be refunded until the date of payment or set -off of the amount, inclusive of the latter.
(3) If a tax authority has, pursuant to the provisions of subsection 107 (3) of this Act,
set a term for a taxable person to submit additional documents, interest shall not be
calculated for the benefit of the taxable person as of the date of delivery of a
corresponding decision until the date of submission of the additional documents.
(4) A taxable person may apply for the payment of interest specified in subsections
(1) and (2) of this section within two years as of:
1) the date of entry into force of a decision to amend or repeal a notice of assessment
or a decision to refuse to fulfil a claim for refund;
2) the entr y into force of a judgment of acquittal regarding a misdemeanour which
caused a claim for refund to be suspended or a judgment of acquittal in a criminal matter
regarding such a claim, or as of the date on which a ruling on terminating criminal
proceedings regarding such a claim is made, or as of the date on which a judgment
terminating misdemeanour proceedings regarding such a claim is made.

(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
(5) A tax authority is required to pay interes t within fifteen days as of the date of
receipt of an application specified in subsection (4) of this section. A reasoned written
decision shall be made upon refusal to pay interest.
(6) If a taxable person has not applied for the refund of the amount paid to the tax
authority without basis and the interest calculated on such amount to his or her bank
account before the amendment or repeal of the administrative act which was the basis for
the payment, the overpaid amount shall be deemed to be payment within the meaning of
subsection 105 (2).
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 117. Interest rate
(1) The rate of interest provided for in §§ 115 and 116 of this Act is 0.06 per cent per
day.
(2) Upon the payment of tax arrears in instalments, a tax authority has the right to
reduce the interest rate by up to 50 per cent as of the date of making the decision on
payment of the tax arrears in instalmen ts.

§ 118. Limitation period for calculation of interest
(1) The limitation period for the calculation of interest is one year as of the date of
full payment of an amount of tax or full payment or set -off of an amount refunded to a
person without basis.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

(2) (Repealed – 04.12.2008 entered into force 01.01.2009 – RT I 2008, 58, 323)
(3) A claim for interest shall not be submitted after expiry of the period specified in
subsection (1) of this section.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )

§ 119. Non- calculation of interest
(1) The calculation of interest shall be suspended:
1) on tax liabilities not performed by a credit institution by the due date for the
duration of a moratorium on the credit institution;
2) upon the declaration of bankruptcy of a taxable person;
3) on tax liabilities not performed by the due date if the tax liabilities are being
performed pursuant to a valid compromise approved in bankruptcy proceedings;
4) on tax liabilities related to an estate which are not performed by the due date, as
of the opening of the succession until acceptance of the estate by successors.
(2) Interest shall not be calculated on an amount of tax outstanding on the due date or
a part thereof which is equal to an amount to be pai d or refunded to a taxable person by
the tax authority pursuant to this Act, an Act concerning a tax or the customs rules.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472; 13.04.2004 entered into
force 01.05.2004 – RT I 2004, 28, 188)
(3) Unless otherwise prescribed by an Act concerning a tax, a claim for interest is not
submitted if the amount of interest is less than 50 kroons.

(4) If, for reasons independent of a taxable person, a tax authority sends a tax notice
specified in § 88 of this Act or a land tax notice to the taxable person later than thirty
days before the due date for payment of the tax and if the amount indicated in the tax
notice is paid after the due date for payment of the tax, interest shall not be calculated f or
the same number of days as the number of days by which the tax authority was late in
sending of the tax notice.
(5) Interest shall not be calculated on amounts of tax declared which are less than the
amounts prescribed by law or on amounts the ref und of which is claimed and which
exceed amounts prescribed by law if such amounts are the result of misleading or false
information provided by the tax authority in writing, unless:
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
1) the taxable person was aware that the information was misleading or false when
declaring or paying tax or submitting a claim for refund;
2) the taxable person caused the false info rmation to be issued by threats or duress,
by submitting misleading or false information to the tax authority or by using other illegal
means.
(6) A tax authority has the right not to calculate or collect interest on the grounds
provided for in § 100 of this Act.
(7) Interest shall not be calculated on an amount of customs duty which payable for
the reason that the customs authorities of the exporting country or another authorised
body of the exporting country has retrospectively revoked the doc ument certifying
preferential origin or declared the document certifying preferential origin not conforming
to the requirements and the taxable person was not aware of the issue of the document
certifying preferential origin on incorrect bases.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)

Chapter 12
Security

§ 120. Security
(1) A tax authority has the right to request the provision of security:
1) upon the payment of tax arrears in instalments (§ 111);
2) in even t of extension or suspension of the fulfilment of a claim for refund
(subsection 107 (5);
(07.12.2005 entered into force 01.01.2006 – RT I 2005, 68, 528)
2
1) upon suspension of the execution of an administrative act (§ 146);
(07.12.2005 entered into force 01.01.2006 – RT I 2005, 68, 528)
3) in other cases prescribed by law.
(1
1) Upon placement of goods under customs supervision or release thereof for free
circulation, a tax authority has the right to demand a security to cover taxes payab le in
connection with a custom debt. The provision, use and release of security and the bases
for calculation of amounts of security shall be carried out pursuant to the procedure
provided for in the customs rules.
(13.04.2004 entered into force 01.05.2004 – RT I 2004, 28, 188)
(2) No security shall be required if the amount of a claim is less than 1000 kroons.
(3) No security shall be required from state, rural municipality and city agencies.

§ 121. Scope of security
A tax authority shall determine the amount of security to be provided. The tax authority
shall determine the scope of security based on the size of the secured claim and the extent
of the costs of possible compulsory execution.

§ 122. Types of security
Unless otherwise provided by an Act concerning a tax, a person who is obligated to
provide security may choose between the following types of security:
1) surety;
2) an amount of security paid into the bank account of a tax authority as a deposit;
3) a regis tered security over movables or a mortgage established for the benefit of
the state, a rural municipality or a city.

§ 123. Surety
(1) Any person who is accepted by a tax authority as a surety and who undertakes to
pay the amount indicated in a contract of suretyship at the request of the tax authority
may act as a surety.
(2) A tax authority has the right not to accept a surety if:
1) the surety does not have sufficient property in order to secure the tax arrears;
2) the amount in which security is provided is not sufficient in the opinion of the tax
authority;

3) the previous activities, financial situation or reputation of the surety give
sufficient reason to doubt the reliability of the security.

§ 124. Pledge
(1) Pledges shall be established pursuant to the procedure provided for in the Law of
Property Act or the Commercial Pledges Act (RT I 1996, 45, 848; 49, correction notice;
1997, 48, 774; 2001, 93, 565; 2002, 53, 336).
(2) On behalf of the state, pledge contracts shall be signed by the head or deputy head
of a tax authority for state taxes or a person authorised by the head of a tax authority for
state taxes. On behalf of a rural municipality or city, pledge contracts shall be signed by
the head or deputy head of a tax authority for local taxes or a person authorised by the
head of a tax authority for local taxes.
(3) A tax authority has the right not to accept a pledge proposed as security if, in the
opinion of the tax authority, the value of the object of the pledge is not sufficient to
secure the tax arrears or the object of the pledge is not easily sold or will lead to
excessive administrative costs.
(4) If a pledge is no longer sufficient to secure a claim as a result of a reduction in the
value of the object of the pledge, a taxable person is required to provide additional
security.

§ 125. Replacement of security
(1) A person who provides security has the right to replace the security with another
security permitted by this A ct or an Act concerning a tax.

(2) A tax authority has the right to request that a security be replaced if the value of
the security falls or the security is no longer sufficient to secure tax arrears which have
been or may be incurred.
(3) A t ax authority has the right not to accept a replacement security if the security is
not sufficient to secure tax arrears or is not reliable.

§ 126. Release of security
(1) Unless otherwise provided by law or a regulation, a tax authority shall relea se a
security if:
1) the claim for the securing of which the security was provided does not arise;
2) the claim for the securing of which the security was provided terminates;
3) the claim for the securing of which the security was provided has been invalidated
or declared null and void.
(2) A surety shall be notified of the release of the security within ten days as of the
occurrence of a fact provided for in subsection (1) of this section. Entries of registered
securities over movables and of mortgages shall be deleted pursuant to the procedure
provided by law.
(3) An amount of security paid into the bank account of a tax authority shall be
released within ten days as of the submission of a corresponding request unles s otherwise
prescribed by law or a regulation. A request for the release of an amount of security may
be submitted within three years as of the occurrence of a fact provided for in subsection
(1) of this section. If a request is not submitted during the abovementioned term, the tax
authority may transfer the amount of security to the state budget.

(4) A taxable person may request that security not be released and that it be used in
order to secure other claims of the tax authority which have arisen or which may arise.

§ 127. Use of security
(1) In order to make a claim against a surety, the surety shall be notified of an
obligation which the principal debtor has not performed. If the surety has not commenced
payment of the tax arrears of the pr incipal debtor within one month as of the date on
which the tax authority sends the corresponding notice, the tax authority has the right to
file an action with a court in order to collect the tax arrears.
(2) Upon failure to fulfil a secured claim, the amount of security paid into the bank
account of the tax authority shall be calculated to cover the claim. If security is provided
to cover several claims, the provisions of subsection 128 (5) of this Act apply to the order
of satisfaction of the claim s.
(3) Upon failure to fulfil a claim secured by a registered security over movables, a tax
authority has the right to sell the security pursuant to the procedure provided by
legislation regulating enforcement procedure.

Chapter 13
Compulsory Execution

Division 1
Compulsory Execution of Claims Arising from Tax Arrears

§ 128. Compulsory execution
(1) A tax authority is required to collect tax arrears unpaid by a taxable person.
Compulsory execution of claims arising from tax arrears shall be conducted pursuant to
the procedure provided for in this Chapter and in legislation regulating enforcement
procedure. If a taxable person is declared bankrupt, tax arrears shall be settled pursuant to
the procedure provided for in the Bankruptcy Act.
(2 ) Compulsory execution of claims arising from tax arrears is permitted if:
1) the due date for performance of the obligation has arrived and the claim is
collectable;
2) the taxable person has been notified of the administrative act containing the claim
pursuant to the procedure provided by law;
3) the tax arrears are not being paid in instalments;
4) the limitation period for the tax arrears has not expired and the tax arrears have
not been forgiven or have not extinguished on other grounds;
5) execution of the administrative act has not been suspended.
(3) Compulsory execution of a claim for an amount of tax declared and not paid by a
taxable person or an amount of tax payable pursuant to a tax notice is permitted only after
a term has been set at least once for the taxable person to pay the tax arrears together with
a warning stating the consequences of failure to perform the obligation within the term (§
129).
(4) A tax authority may also collect f ines imposed by the tax authority and other
financial obligations arising from this Act, including the costs of substitutive enforcement
and penalty payments and the costs of the performance of obligations by interpreters,
translators, experts or third par ties if, pursuant to law, such costs are payable by the
taxable person. In such case, the provisions concerning the compulsory execution of

claims arising from tax arrears apply to the compulsory execution of such claims. If a
person who is obligated to cover costs or pay a penalty payment has not incurred tax
arrears or if a tax authority has not commenced compulsory execution of claims arising
from the tax arrears, the tax authority may submit a request for compulsory execution of
the abovementioned claims to a bailiff.
(5) The tax authority shall first collect the amount of tax to be paid and thereafter
interest. If other financial obligations arising from this Act are subject to compulsory
execution together with tax arrears, the arrears shall be collected in the order provided for
in subsection 105 (6) of this Act. If amounts of money recovered as a result of
compulsory execution are not sufficient to satisfy all tax claims, the amounts of money
recovered as a result of compulsory execution shall be calculated to cover different taxes
in the order provided for in subsection 105 (6) of this Act.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(5
1) (Repealed – 04.12 .2008 entered into force 01.01.2009 – RT I 2008, 58, 323)
(6) If amounts of money recovered as a result of compulsory execution conducted by
a bailiff are not sufficient to satisfy all claims, the amount received shall first be
calculated to cover th e costs of execution and the remuneration of the bailiff and,
thereafter, the claims shall be satisfied in the order provided for in subsection 105 (6) of
this Act.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(7) A tax authority for a state tax may, by way of compulsory execution, collect state
tax arrears of rural municipality and city agencies. If a state agency incurs tax arrears, the
administrative authority exercising supervisory control over the state agency shall be
addressed to settle the matter.
(8) A tax authority has the right to waive compulsory execution if the expenses
related to compulsory execution exceed the amount to be collected or collect ion of the

amount is hopeless due to the insolvency of the taxable person and if it is not expedient to
submit a bankruptcy petition.

§ 129. Warning of compulsory execution
(1) A tax authority has the right to issue an order to a taxable person to pay tax arrears
within ten days as of the date of receipt of the order.
(2) A tax authority has the right to issue an order to a taxable person to pay tax arrears
within forty -eight hours as of the delivery of the order if the tax authority has reaso n to
believe that any delay in the collection of tax arrears may render collection of the tax
arrears impossible.
(3) In addition to the provisions of § 46 of this Act, an order issued pursuant to
subsection (1) or (2) of this section shall contain a warning concerning the
commencement of compulsory execution if the obligation is not performed within the
term.
(4) If several persons are solidarily liable for the payment of tax arrears, a tax
authority has the right to issue a joint order to such persons.

§ 130. Enforcement action by tax authority
(1) If a taxable person fails to pay tax arrears within the term set by a tax authority
pursuant to § 129 of this Act or in a notice of assessment or a liability decision, the tax
authority shall commence collection of the tax arrears by way of compulsory execution.
A tax authority has the right to perform the following acts:
1) to apply for a prohibition on the disposal of an immovable to be entered in the
land register;

(11.12.2008 entered into force 01.01.2009 – RT I 2008, 60, 331 )
2) to apply for a prohibition on the disposal of a structure which is a movable to be
entered in the register of construction works;
(1 1.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
3) to apply for a prohibition on the disposal of a vehicle to be entered in the relevant
register;
(11.12.2008 entered i nto force 01.01.2009 –
RT I 2008, 60, 331 )
4) to apply for a prohibition on the disposal of a ship to be entered in the ship
register;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
5) to issue an order to freeze securities or a securities account pursuant to the
provisions of the Estonian Central Register of Securities Act (RT I 2000, 57, 373; 2001,
48, 268; 79, 480; 89, 532; 93, 565; 2002, 23, 131; 63, 387; 110, 657; 2003, 51, 355);
5
1) to apply for establishment of a mortgage on an immovable or a ship entered in the
ships register or an aircraft entered in the civil aircraft register. Th e regulation concerning
judicial mortgage provided for in the Law of Property Act shall apply to the mortgage;
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
6) to make a claim for payment against financial claims and proprietary rights
pursuant to the procedure provided for in this Act or in legislation regulating enforcement
procedure.
(1
1) In order to perform the enforcement action specified in subsection (1) of this
section, the person specified in subsection 46 (5) shall submit a corresponding written
application.

(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(2) A tax authority may apply to a bailiff for the collection of tax arrears if acts
performed by the tax authority pursuant to clause (1) 6) of this section have not yielded
any results. If the enforcement proceedings commenced by a tax authority are continued
by a bailiff, the person who owes arrears need not be issued with a ne w warning. If
enforcement proceedings are continued by a bailiff, the prohibitions and seizures imposed
by the tax authority shall remain valid.

§ 131. Seizure of bank account
(1) A tax authority has the right to issue orders to credit institutions for the seizure of
the bank account of a person who owes arrears or for the transfer of money from the bank
account of a debtor to the bank account of the tax authority in the amount of the tax
arrears.
(2) A credit institution is required to comply without delay with an order issued by a
tax authority for the seizure of the bank account of a taxable person. If the amount in the
bank account is smaller than the amount to be transferred according to the order of the tax
authority, the credit institution is required to comply with the order for the transfer of the
tax arrears in an amount equal to the amount in the bank account of the taxable person
and, in the event of future receipts of money in the bank account of the person who owes
arrears, transfe r the money to the bank account of the tax authority until the amount
indicated in the order is paid, unless the tax authority has granted permission to access the
seized bank account.
(3) Upon the collection of the tax arrears or seizure of the bank account of a natural
person, the amount of the minimum monthly wage for the person who owes arrears and
for each of his or her dependant family members shall not be subject to collection or
seizure by a tax authority each month. Information on the dependa nts shall be given to
the tax authority by the person who shall, at the request of the tax authority, submit the

necessary documents. Upon issue of the order, the tax authority may take the information
available thereto on the dependants of the person as the basis for the issue of the order. If
the person submits different information on his or her dependants after the issue of the
order, the order shall be amended correspondingly.
(20.04.2005 entered into force 01.07.2005 – RT I 2005, 25, 193)
(4) Pa yments from a seized bank account may only be made with the permission of a
tax authority. A seized bank account is accessible with the permission of a tax authority.
A tax authority shall issue an order for the release of a bank account from seizure withi n
three working days after payment of the tax arrears.
(5) A credit institution is prohibited from providing a taxable person with access to a
bank account if an order of a tax authority concerning the seizure of the bank account of
the taxable perso n has been received.
(6) Upon seizure of the bank account of a taxable person, the credit institution is
required to communicate immediately, by post or electronic means, the following
information to the tax authority which issued the order:
1) the date and time of receipt of the order;
2) the name and title of the employee who received the order;
3) the date and time of seizure of the bank account;
4) the balance in the bank account at the moment of seizure of the bank account.

§ 132. Limitation period for compulsory execution
(1) The limitation period for the compulsory execution of claims arising from the
amount of tax is seven years. The limitation period begins to run on 1 January of the year
following the y ear during which the due date for the performance of an obligation arrives.

The limitation period for the compulsory execution of claims arising from the amount of
tax collectable pursuant to a notice of assessment or liability decision begins to run on 1
January of the year following the year of delivery of the notice of assessment or liability
decision. The limitation period for the compulsory execution of claims arising from other
financial obligations collectable by a tax authority is one year as of 1 January of the year
following the year of the filing of the claim.
(04.12.2008 entered into force 01.01.2009 –
RT I 2008, 58, 323 )
(2) The limitation period for the compulsory execution of a claim for interest
specified in subsection 115 (3) of this Act is one year as of 1 January of the year
following the year of the filing of the claim.
(3) Upon expiry of the limitation period, the tax liability and accessory obligations
related thereto terminate.
(4) A limitation period is interrupted:
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 enfor cement proceedings are commenced in order to collect tax arrears;
5) if measures for provisional legal protection are applied by the administrative
court.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )
(5) The running of a new limitation period shall be calculated as of 1 January of the
year following the year during which the grounds for interruption of the limitat ion period
cease to exist.

(6) A limitation period shall be interrupted only with regard to the amount which is
related to the grounds for interruption of the limitation period.
(7) Compulsory execution of claims arising from tax arrears is not permitted after
expiry of the limitation period provided for in this section.

§ 133. Competence of tax authority as representative of state, rural municipality or city in
liquidation, bankruptcy and judicial proceedings
(1) Upon the collection of tax arrears in liquidation, bankruptcy or judicial
proceedings, the state is represented by the Tax and Customs Board.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
(2) Upon the collection of tax arrears in liquidation, bankruptcy or judicial
proceedings, a rural municipality or city shall be represented by a rural municipality or
city administrative agency with the authority of a tax authority or by a regional structural
unit of the Tax and Customs Board within the limits of the com petence transferred to the
office by a contract under public law entered into pursuant to the Local Taxes Act.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(3) A tax au thority may submit a petition for the declaration of bankruptcy of a
taxable person as bankrupt if enforcement action taken by the tax authority or a bailiff
does not result in the collection of tax arrears.
(4) A tax authority may submit a petition for the declaration of bankruptcy of a
taxable person as bankrupt before the case specified in subsection (3) of this section if a
basis specified in clause 10 (2) 3) of the Bankruptcy Act exists.
(15.02.2007 entered into force 16.03.2007 – RT I 2007, 23, 121)

§ 134. Compulsory execution upon granting international professional assistance
(1) A tax authority may exercise the powers provided for in this Division in order to
grant international professional assistance if the public authorities of a foreign state apply
to the competent public authorities of the Republic of Estonia seeking the compulsory
execution of tax liabilities of a taxable person who resides or is located in Estonia or who
owns property in Estonia or of accessory obligations rela ted to such tax liabilities.
(2) In the case provided for in subsection (1) of this section, compulsory execution
shall be conducted pursuant to an execution document submitted by the foreign state in
which the amount and validity of the claim are st ated. Upon the issue of a warning to a
taxable person concerning the compulsory execution of claims arising from tax arrears
incurred in a foreign state, the tax authority shall indicate that, in order to challenge the
administrative act which is the basis for compulsory execution, the challenge or
complaint must be filed with the competent public authorities of the foreign state.
(3) The Tax and Customs Board may submit an application to the competent agency
of a foreign state for compulsory execution of tax liabilities of a taxable person who
resides or is located in the foreign state or who owns property in the foreign state or of
accessory obligations related to such tax liabilities.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

Division 2
Ensuring Performance of Non- Monetary Obligations

§ 135. Application of coercive measures

(1) The provisions of the Substitutive Enforcement and Penalty Payment Act (RT I
2001, 50, 283; 94, 580) apply to the penalty payments and substitutive enforcement
prescribed in §§ 67, 71 and 91 of this Act or in an Act concerning a tax, taking account of
the specifications provided for in this Act or the Act concerning a tax. A coercive
measure may be applied repeatedly until the objective intended by an administrative act
is achieved.
(2) The application of a coercive measure may be suspended by an administrative
court judge pursuant to the procedure prescribed in the Code of Administrative Court
Procedure (RT I 1999, 31, 425; 33, correction notice; 40, correction notice; 96, 846;
2000, 51, 321; 2001, 53, 313; 58, 355; 2002, 29, 174; 50, 313; 53, 336; 62, 376; 2003, 13,
67; 23, 140) or, on the basis of a reasoned request, by the tax authority which issued an
administrative act. A tax authority may postpone the application of a coercive measure
and issue a new warning setting a new term for compliance with an administrative act. A
tax authority shall not postpone the application of a coercive measure for longer than two
months. A decision to amend the application of a coercive measure shall be delivered
pursuant to the procedure provided for in Chapter 4 of this Act.
(3) Penalty payments and the costs of substitutive enforceme nt shall be collected by
way of compulsory execution pursuant to the provisions of subsection 128 (4) of this Act.

§ 136. Warning of application of coercive measure
(1) A person with regard to whom a coercive measure is to be applied shall be set a
term for the performance of an obligation and the person shall be warned that coercive
measures may be applied if the obligation is not performed by the due date.
(2) Warnings shall be prepared in writing. A warning may be issued in an
administrativ e act if a coercive measure is applied in order to ensure compliance with the
administrative act.

(3) The following shall set be out in a warning:
1) the name and address of the person to whom the warning is issued;
2) a reference to the administrative act imposing the obligation with which failure to
comply will result in the application of a coercive measure;
3) the due date for voluntary performance of the obligation, except in the case of an
obligation to refrain from a par ticular activity;
4) the type of coercive measure or, in the case of a penalty payment, the size of the
penalty payment to be applied in the event of failure to perform the obligation by the due
date;
5) the name of the tax authority which issued the warning;
6) the given name and surname of the official competent to sign and his or her
signature;
7) the date of issue of the warning.
(4) If a tax authority intends to apply several coercive measures to ensure
performance of the same obligation, the order of application and the dates of
commencement of application of the coercive measures shall be indicated. The tax
authority may apply a new coercive measure only if compliance with an administrative
act is not achieved by the initial coercive measure.
(5) If a tax authority wishes to apply coercive measures of the same type to ensure the
performance of several obligations, the coercive measure shall be indicated separately for
each obligation in a warning.
(6) If a person is required by an administrative act to refrain from acting or to tolerate
measures taken by a tax authority, a warning may state that a coercive measure may be
re -applied upon each failure to comply with the obligation.

§ 136
1. Performance of acts ensuring execution before imposition of financial claim or
obligation
(1) If, upon verification of the correctness of payment of taxes, a justified doubt arises
that, after imposition of a financial claim or obligation, the compulsory executi on thereof
may become considerably more difficult or impossible as a result of the activities of the
taxable person, the head of the regional structural unit of the Tax and Customs Board
may submit an application to an administrative court to be granted pe rmission for the
performance of the enforcement actions provided for in clauses 130 (1) 1) – 5
1) of this
Act.
(2) The following shall be set out in an application submitted to an administrative
court:
1) the reasons indicating the considerable difficulty or impossibility to collect
potential tax liability;
2) the estimated amount of the potential financial claim or obligation;
3) information concerning security, upon the provision of which the tax authority
shall terminate the enforcement actions;
4) one or several enforcement actions provided for in clauses 130 (1) 1) – 5
1) of this
Act and the reason why the tax authority considers it to be necessary to perform the
selected action.
(3) If the circumstance requir ing the performance of an enforcement action ceases to
exist or if the taxable person provides security to ensure the payment of the financial
claim or obligation, the tax authority shall terminate an enforcement action not later than
within two working da ys.
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

Chapter 14
Challenge Proceedings

§ 137. Right to file challenge
(1) If a taxable person or another participant in proceedings finds that the rights of the
person have been violated or freedom of the person has been restricted by a tax notice,
notice of assessment, liability decision, order or another administrative act issued by a tax
authority, the person has the right to apply for the repeal or amendment of the
administrative act or for the issue of a new administrative act.
(2) Participants in proceedings also have the right to challenge:
1) a delay;
2) an omission;
3) refusal to rem ove an official or expert;
4) the return of an application for the issue of an administrative act;
5) other measures taken by a tax authority.
(3) A challenge against an administrative act or measure of the Tax and Customs
Board shall be filed with the Tax and Customs Board. If the regional structural unit has
issued the administrative act of the Tax and Customs Board or performed the transaction
in question, the challenge shall be filed to the Tax and Customs Board through the
regiona l centre.

(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(4) The provisions of this Chapter apply to the adjudication of challenges against
administrative acts or measure s of tax authorities for local taxes taking account of the
specifications provided for in the Local Taxes Act.

§ 138. Term for filing challenge
(1) A challenge against an administrative act shall be filed within thirty days as of the
date of notification of or delivery of the administrative act.
(2) A challenge against a measure shall be filed within thirty days as of the day when
the person filing the challenge becomes or should have become aware of the challenged
measure.
(17.12.2003 e ntered into force 01.01.2004 – RT I 2003, 88, 591)

§ 139. Requirements for challenges
(1) A challenge shall be filed in writing.
(2) The following shall be set out in a challenge:
1) the name of the administrative authority with which the challenge is filed;
2) the name, postal address and telecommunications numbers of the person filing the
challenge;
3) the name of the challenged administrative act and the date of issue thereof or the
time of the challenged measure;

4) the content of the challenged administrative act or measure;
5) the reasons why the person filing the challenge finds that the administrative act or
measure violates the rights of the person;
6) the clearly expressed request of the person filing the challenge;
7) certification by the person filing the challenge that no judgment has entered into
force and no court proceedings are being conducted concerning the matter;
8) a list of documents annexed to the challenge.
( 3) A challenge shall be signed by the person filing the challenge or by the
representative of such person. The representative of the person filing a challenge shall
append his or her authorisation document thereto unless such document has been
submit ted before.
(4) The relevant documents shall be appended to a challenge. If it is not possible to
submit the documents, the location of the documents shall be indicated in the challenge.

§ 140. Restoration of term for filing challenge
The term for filing a challenge may be restored under the conditions provided for in § 50
of this Act.

§ 141. Withdrawal of challenge
(1) A person who files a challenge has the right to withdraw the challenge prior to the
making of a decision. A notice of withdrawal of a challenge shall be filed in writing or
orally. The tax authority shall record an oral withdrawal and the record shall be signed by
the person withdrawing the challenge.

(2) The withdrawal of a challenge does not preclude the filing of a new challenge
during the term for filing challenges.

§ 142. Deficiencies in challenge
If a challenge does not comply with the requirements provided for in § 139 of this Act,
the tax authority with which the challenge is filed shall draw the attention of the person
who filed the challenge to the deficiencies in the challenge and, if necessary, grant a term
of up to ten days to the person who filed the challenge to eliminate the deficiencies.

§ 143. Return of challenge
(1) A challenge shall be retur ned if:
1) the person who filed the challenge has no right to file the challenge;
2) the person who filed the challenge has failed to eliminate the deficiencies in the
challenge within the designated term;
3) the term for filing the challenge has expired and is not restored;
4) a court judgment has entered into force concerning the matter;
5) judicial proceedings are being conducted concerning the matter.
(2) If the review of a challenge is not within the compet ence of an administrative
authority, the administrative authority shall return the challenge and explain where the
person has recourse or shall deliver the challenge to the competent administrative
authority and notify the person who filed the challenge of such delivery.

(3) A challenge shall be returned to a person by a written decision within seven days
as of the filing of the challenge. The decision shall set out the grounds for the return and
an explanation concerning the procedure for further recourse. In the case provided for in
clause (1) 2) of this section, the challenge shall be returned within seven days after expiry
of the term for the elimination of the deficiencies (§ 142).
(11.12.2008 entered into force 01.01.2009 –
RT I 2008, 60, 331 )

§ 144. Contestation of return of challenge
(1) A person who filed a challenge may file a complaint against a decision to return
the challenge made by a regional structural unit of the Tax and Customs Board with the
Tax and Customs Board within thirty days as of the date of notification of or delivery of
the administrative act. A person who filed a challenge may file a complaint with the same
authority against a decision made by a regional tax centre of the Tax and Customs Board
to return the challenge.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(2) If an agency specified in subsection (1) of this se ction finds that the return of a
challenge was not justified, the agency shall accept the challenge.
(3) If an agency specified in subsection (1) of this section finds that a complaint
against the return of a challenge is not justified, the agency shall deny the complaint and
shall return the challenge.
(4) A person shall be notified of the denial of a complaint against the return of a
challenge by a written decision within seven days as of the filing of the complaint and the
grounds for the denial and an explanation concerning the procedure for further recourse
shall be set out in the decision.

§ 145. Delivery of challenge
(1) If a challenge complies with the requirements provided for in this Act, the
regional structural unit of the Tax and Customs Board shall deliver the challenge together
with the necessary documents and its opinion in writing to the Tax and Customs Board
within seven days.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(2) If a regional tax centre of the Tax and Customs Board which issued an
administrative act finds that the challenge against it is reasoned, the challenge may be
satisfied by the regional structural unit of the Tax and Customs Board.
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)

§ 146. Suspension of execution of administrative act
(1) The filing of a challenge shall not prevent the challenged administrative act from
being executed, except in the cases provided for in subsections (2) and (3) of this section.
(2) The execution of orders issued to a third party pursuant to §§ 61 or 62 of this Act
shall be suspended until the final decision made in the matter enters into force.
(3) An administrative authority adjudicating a challenge may suspend the execution
of an administrative act if this is necessary. If the execution of an administrative act is
suspended at the request of a taxable person, the tax authority has the right to request that
the taxable person provide security if the suspended administrative act contains a

financial obligation. Security shall be provided and accepted pursuant to the provisions of
§§ 120-127 of this Act.
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)

§ 147. Review of challenge
(1) Upon the review of a challenge, the lawfulness and purposefulness of the issue of
an administrative act shall be verified.
(2) An adminis trative authority which reviews a challenge shall:
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
1) request that the corresponding administrative authority submit documents
concerning the administrative act, if necessary;
2) conduct on- the-spot visits of inspection, if necessary;
3) involve experts or specialists, if necessary;
4) require written explanations from the administrative authority which issued the
administrative act, if necessary;
5) hear the explanations of interested persons;
6) resolve issues concerning suspension of the execution of the administrative act;
7) perform other acts provided by law.
(3) A challenge shall be reviewed within thirty days after the receipt thereof by the
administrative authority reviewing the challenge.
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)

(4) If a challenge needs to be examined further, the administrative authority which
reviews the challenge may, by a writ ten decision, extend the term for review of the
challenge by up to ten days.
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
(5) An administrative authority which reviews a challenge may, if necessary, request
that the person who file d the challenge submit additional evidence. In such case, a
challenge shall be reviewed within five days as of the submission of evidence but the
administrative authority has no obligation to review the challenge earlier than within the
term provided for i n subsection (3) of this section.
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)

§ 148. Authority of tax authority upon review of challenge
(1) Upon adjudication of the matter on the merits of a challenge, the tax authority has
the right to:
1) satisfy the challenge and repeal an administrative act either in full or in part and
to eliminate the factual consequences of the administrative act;
2) issue an administrative act, take a measure or make a new decision on the merits
of the matter;
3) issue a precept to the administrative authority which issued the administrative act
to issue an administrative act, to take a measure or for a new resolution of the matter;
(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
4) restore the situation prior to the measure being taken or assign such task to the
administrative authority which took the measure;

(12.10.2005 entered into force 18.11.2005 – RT I 2005, 57, 451)
5) dismiss the challenge.
( 2) If a decision to repeal or amend an administrative act made on a challenge affects
the rights of a third party, the third party shall be granted the opportunity to submit
explanations and objections prior to the decision being made.
(3) If the person who filed a challenge has filed or files an action in the matter with a
court within the term for review of the challenge, the tax authority has the right to return
the challenge and not to make a decision on the challenge.

§ 149. Decision on c hallenge
(1) A decision on a challenge shall be in writing and shall indicate the resolution
concerning adjudication of the challenge. A decision on a challenge shall be delivered to
the person who filed the challenge and to third parties involved in challenge proceedings
pursuant to the procedure provided for in Chapter 4 of this Act.
(2) If a challenge is satisfied, the tax authority is not required to prepare a decision on
the challenge but shall take the desired measure or amend an administr ative act in the
desired manner.
(3) Upon dismissal of a challenge, a judgment on the challenge shall, in addition to
the requirements provided for in subsection (1) of this section, be reasoned and contain
an explanation concerning the procedure for further recourse.

§ 150. Burden of proof
(1) If an amount of tax assessed in a tax notice or notice of assessment is challenged,
the burden of proof that the tax was assessed incorrectly lies with the taxable person.

(2) If a determined amou nt of tax is challenged by a taxable person, the burden of
proof regarding evidence possessed only by a tax authority lies with the tax authority.

§ 151. Right to appeal
(1) A taxable person or another participant in proceedings whose request was not
satisfied in the course of challenge proceedings or whose rights were violated in the
challenge proceedings has the right to file an action with an administrative court under
the conditions and pursuant to the procedure provided by the Code of Administr ative
Court Procedure. An action may be filed, inter alia, to claim the following:
1) for repeal of an administrative act or a portion thereof, the repeal of which has
been applied for by a dismissed challenge;
2) for issue of an administra tive act, the issue of which has been applied for by a
dismissed challenge;
3) against a decision on a challenge if it violates the rights of a person regardless of
the object of the challenge proceedings.
(22.10.2003 entered into force 01.01.2004 – RT I 2003, 71, 472)
(2) A taxable person or another participant in proceedings may have recourse to a
court for adjudication of the matter at each stage of the challenge proceedings. A person
also has the right of recourse to a court without filing a challenge.

Chapter 15
Punishments Imposed for Violation of Tax Law

§ 152. (Repealed – 24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69)

§ 153. (Repealed – 24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69)

§ 153
1. Evasion of payment of taxes
(1) Failure to submit information to a tax authority or submission of false information
or violation of the obligation to withhold which results in the amount of tax payable
being less than the amount of tax to be paid pursuant to an Act concerning a tax or the
amount to be refunded, compensated for or set off being greater than the amount to be
refunded, compensated for or set off pursuant to an Act is punishable by a fine of up to
300 fine units.
(2) The same act, if commit ted by a legal person, is punishable by a fine of up to
200,000 kroons.
(24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69)

§ 153
2. Tax fraud
(1) Submission of knowingly false information to a tax authority with the aim of
increasing the amount of a claim for refund or creating a claim for refund is punishable
by a fine of up to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to
500,000 kroons.
(24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69)

§ 154. Obstruction of activities of tax authority
(1) Failure to submit a tax return, documents, things or other information by the due
date, failure to register with a tax authority, submission of false information or knowing
submission of incorrect documents to a tax authority, failure to comply with the
requirements for the keeping of records, failure to comply with an order of a tax authority
or obstruction of the activities of a tax authority in another manner is punishabl e by a fine
of up to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 50
000 kroons.
(3) (Repealed – 24.01.2007 entered into force 15.03.2007 – RT I 2007, 13, 69)

§ 154
1. Violation of rules re lating to goods subject to excise duty
(1) The manufacture, dispatch, receipt, possession, storage, transfer or another
unlawful act concerning excise goods in violation of the requirements provided for in an
excise duty Act or legislation issued on the basis thereof, provided that the elements of a
misdemeanour provided for in § 152 or 154 of this Act do not exist, is punishable by a
fine of up to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 50
000 kroons.
(23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569)

§ 155. (Repealed – 19.06.2002 entered into force 01.09.2002 – RT I 2002, 63, 387)

§ 155
1. Failure to perform obligations of excise warehousekeeper and registered trader
(1) Failure to perform the obligations of an excise warehousekeeper and registered
trader provided for in an excise duty Act, provided that the elements of a misdemeanour
provided for in §§ 152, 154 or 154
1 of this Act do not exist, is punishable by a fine of up
to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 50
000 kroons.
(23.11.2004 entered into force 01.01.2005 – RT I 2004, 84, 569)

§ 155
2. Unlawful acts involving motor fuel imported under exemption from excise duty
(1) The performance of unlawful acts or transactions involving fuel imported under
an exemption from excise duty in the standard fuel tank of a motor vehicle is punishable
by a fine of up to 300 fine units.
(2) Th e same act, if committed by a legal person, is punishable by a fine of up to 50
000 kroons.
(04.12.2002 entered into force 01.04.2003 – RT I 2003, 2, 17)

§ 156. Tampering with meter or preventive measure
(1) Tampering with or removal or replacement of a meter or preventive measure
installed pursuant to an Act concerning a tax or this Act without the permission of a tax
authority, or any other activity due to which a meter or preventive measure cannot be
used as intended is punishable by a fine of up to 200 fine units or by detention.

(2) The same act, if committed by a legal person, is punishable by a fine of up to 40
000 kroons.

§ 157. Organisation of gambling without decision of Tax and Customs Board
(1) Organisation of gambling without the decision confirming payment of gambling
tax is punishable by a fine of up to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 50
000 kroons.
(22.04.2009 entered into force 01.06.2009 –
RT I 2009, 24, 146 )

§ 158. Violation of obligations arising from Heavy Goods Vehicle Tax Act
(1) Failure to re -register a lorry pursuant to the requirements arising from the Heavy
Goods Vehicle Tax Act (RT I 2000, 81, 515; 2002, 110, 655; 2003, 23, 135) or use of a
heavy goods vehicle with a registration certificate which has not been re -registered is
punishable by a fine of up to 100 fine units imposed on the owner or possessor of the
lorry.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 20
000 kroons.

§ 159. Failure to issue certificate
(1) Failure to issue a certificate concerning tax withheld or paid on payments made to
a taxpayer, if such obligation is imposed on the person who makes the payment by law, is
punishable by a fine of up to 100 fine units.

(2) The same act, if committed by a legal person, is punishable by a fine of up to 7000
kroons.

§ 160-161 (Repealed – 11.03.2009 entered into force 06.04.2009 –
RT I 2009, 19,
114 )

§ 162. Proceedings and accrual of fines
(1) The provisions of the General Part of the Penal Code and the Code of
Misdemeanour Procedure apply to misdemeanours provided for in this Chapter, taking
account of the specifications provided for in this Chapter.
(2) The following extra -judicial bodies conduct proceedings in matters of
misdemeanou rs provided for in this Chapter:
1) the Tax and Customs Board;
2) tax authorities for local taxes (in matters relating to local taxes).
(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591)
(3) Fines imposed by tax authoriti es for state taxes are paid into the state budget, fines
imposed by tax authorities for local taxes are paid into the budget of the local
government.

Chapter 16
Implementing Provisions

§ 163. Application of this Act to tax liabilities incurred prior to entry into force of this
Act
(1) The provisions of this Act apply to the making of assessments of tax and the
refund of overpaid amounts relating to tax liabilities incurred prior to the entry into force
of this Act.
(2) (Repealed as of I Janu ary 2003 – 11.06.2003 entered into force 07.07.2003 – RT I
2003, 48, 341)
(2
1) The right to compensation for damage does not arise for a taxable person upon
payment of interest calculated on the amount of tax arising from legislation in force prior
to the entry into force of this Act and unpaid by the due date. Claims for interest for a
period preceding the entry into force of this Act presented by the tax authority after 5
November 2002 are invalid. All other valid claims for interest are subject to f ulfilment.
(11.06.2003 entered into force 07.07.2003 – RT I 2003, 48, 341)
(3) The provisions of this Act concerning the amendment and repeal of tax notices,
notices of assessment and liability decisions apply to the amendment and repeal of
precepts, decisions and tax notices issued pursuant to §§ 21, 22, 23
1 and 40 of the
Taxation Act in force until the entry into force of this Act.

§ 164. Collection of tax arrears incurred prior to entry into force of this Act
(1) Tax arrears incurred prior to the entry into force of this Act shall be collected
pursuant to the procedure provided for in this Act. Collection commenced prior to the
entry into force of this Act may be continued pursuant to the procedure provided for in
this Act.
(2) The provisions of this Act concerning the compulsory execution of liability
decisions apply to the compulsory execution of precepts issued to guarantors for the

payment of amounts of tax pursuant to the Taxation Act in force prior to the entry into
force of this Act.

§ 165. Application of provisions concerning limitation periods
(1) The provisions of this Act concerning suspension (§ 99) and interruption of
limitation periods (subsections 132 (4) -(6)) apply to limitation periods which have begun
to run pri or to the entry into force of this Act if grounds for the suspension or interruption
of the limitation period arise after the entry into force of this Act.
(2) The limitation period provided for in subsection 98 (2) of this Act, commencing
as of the entry into force of this Act, applies to tax liabilities which were incurred prior to
the entry into force of this Act and which do not involve an obligation provided by law to
submit tax returns.
(3) The limitation period for the calculation of inte rest on amounts of tax or on
amounts refunded to persons without basis which are returned or set off prior to the entry
into force of this Act is one year as of the entry into force of this Act.

§ 166. Resolution of disputes
Objections and appeals filed prior to the entry into force of this Act shall be resolved
pursuant to the procedure provided for in the Taxation Act in force prior to the entry into
force of this Act.

§ 167. Punishment of legal persons for acts committed prior to entry into force of Penal
Code

(1) Legal persons shall be punished for violations of tax law committed prior to the
entry into force of the Penal Code and after the repeal of the Taxation Act pursuant to the
provisions of subsections (2) -(13) of this section.
(2) Failure to submit a tax return by the due date, failure to comply with the
requirements for the keeping of records, failure to register with a tax authority, failure to
give notice of changes in information submitted upon registration or failure to submit
documents to a tax authority is punishable by a fine of up to 10 000 kroons.
(3) Tampering with or removal or replacement of a meter or preventive measure
installed on the orders of a tax authority, or any other activity due to which a meter or
preve ntive measure cannot be used as intended, or obstruction of the activities of a tax
authority upon verification of the correctness of payment of taxes, assessment of tax
payable or collection of tax arrears, or failure to comply with an administrative act issued
by a tax authority to this effect is punishable by a fine of up to 20 000 kroons.
(4) Indicating in a tax return or other documents submitted to a tax authority a smaller
amount of tax than that prescribed in an Act concerning a tax or a great er amount of tax
than that due to be refunded pursuant to an Act concerning a tax is punishable by a fine in
an amount of up to 40 per cent of the amount by which the amount of tax as indicated by
the taxpayer is lower than the amount of tax to be paid pur suant to an Act concerning a
tax or by which the amount of tax to be refunded as indicated by the taxpayer is greater
than the amount of tax to be refunded pursuant to an Act concerning a tax.
(5) An activity specified in subsection (4) of this secti on, if the activity is performed
intentionally, is punishable by a fine in an amount of up to 100 per cent of the amount by
which the amount of tax as indicated by the taxpayer is lower than the amount of tax to
be paid pursuant to an Act concerning a tax or by which the amount of tax to be refunded
as indicated by the taxpayer is greater than the amount of tax to be refunded pursuant to
an Act concerning a tax.
(6) Failure to withhold or pay taxes which have been withheld is punishable by a fine
in a n amount of up to 100 per cent of the amount of tax unpaid within the set term.

(7) If a credit institution fails to comply with an order of a tax authority to seize a
bank account, a fine equal to the amount of the tax not paid by a taxpayer by the due date
shall be imposed on the credit institution, whereupon the fine shall not exceed the amount
in the bank account of the taxpayer at the moment when the bank account is seized.
(8) Organisation of gambling using a gambling machine that does not have a revenue
stamp for the corresponding taxable period is punishable by a fine of up to 50 000 kroons
per gambling machine without a revenue stamp in the gambling location.
(9) Organisation of gambling using a gambling table that does not have a revenue
stamp for the corresponding taxable period is punishable by a fine of up to 100 000
kroons per gambling table without a revenue stamp in the gambling location.
(10) Trade in cigarettes at a price which is higher than the price printed on the revenue
stamp attached to the sales packaging of the cigarettes is punishable by a fine of between
5000 and 40 000 kroons.
(11) Failure to re -register a lorry pursuant to the requirements arising from the Heavy
Goods Vehicle Tax Act (RT I 2000, 81, 515; 2002, 110, 655; 2003, 23, 135) or use of a
heavy goods vehicle with a registration certificate which has not been re -registered is
punishable by a fine of up to 20 000 kroons imposed on the owner or possessor of the
lorry.
(12) The director general of a tax authority, his or her deputy, the head of the regional
structural unit of a tax authority and persons authorised by a director general or the head
of the regional structural unit have the right to hear matters of violations of tax law
provided for in subsections (2) -(11) of this section and to impose punishments in such
matters. An official authorised by a council has the right to hear matters concerning
violations of the Local Taxes Act and to impose punishments in such matters. Matters of
violations of tax law shall be heard and punishments shall be imposed pursuant to the
procedure provided for in the Code of Administrative Court Procedure, in accordance
with the terms specified in subsection (13) of this section.

(17.12.2003 entered into force 01.01.2004 – RT I 2003, 88, 591; 12.10.2005 entered into
force 18.11.2005 – RT I 2005, 57, 451)
(13) An administrative penalty for a violation of tax law provided for in subsections
(2)- (11) of this section may be imposed not later than within three years as of the offence
being committed.

§ 168. Liability of persons convicted of tax offences pursuant to Criminal Code for
payment of tax arrears
A person who is convicted of committing a criminal offence provided for in § 148
1 of the
Criminal Code (RT 1992, 20, 287 and 288; RT I 2001, 73, 452; 85, 510; 87, 526) shall be
liable for tax arrears incurred as a result of the offence committed by the person pursuant
to the provisions of subsection 41 (1) of this Act and a tax authority may prepare a
liability decision obligating the person to pay the tax arrears.

§ 168
1. Notification of suspension of activities of sole proprietor and deletion of sole
proprietor from register
(1) A sole proprietor who wishes to notify of the suspension of the activities the reof
from 1 January up to 31 December 2009 shall notify the registrar of the commercial
register thereof in compliance with subsection 3 (3) of the Commercial Code by an
application specified in subsection 511
4 (1) of the Commercial Code. A person is not
deemed to be a sole proprietor for the purposes of taxation during the period when the
business activities of the person are suspended.
(2) A sole proprietor who wishes to terminate the activities thereof during the period
specified in subsection (1) of this section is required to notify the regional structural unit
of the Tax and Customs Board of the termination of the activities th ereof within five

working days. A person need not notify of the termination the business activities thereof
if the relevant date was indicated in the application for registration of the sole proprietor.
(3) A sole proprietor shall be deleted from the register on the basis of a decision of
the head of the tax authority. A sole proprietor is deemed to be deleted from the register
as of the date specified in the decision.
(04.06.2008 entered into force 10.07.2008 –
RT I 2008, 27, 177 )
§ 169. (omitted from this text)

§ 170. Entry into force of Act
(1) This Act enters into force on 1 July 2002.
(2) Clause 30 2) of this Act enters into force a s of the moment of Estonia’s accession
to the European Union.
(3) Sections 152–160 and 162 of this Act enter into force on the date on which the
Penal Code enters into force.

1 COUNCIL DIRECTIVE 77/799/EEC concerning mutual assistance by the compet ent
authorities of the Member States in the field of direct taxation (OJ No. L 336, 27.12.1977,
pp. 15- 20);
COUNCIL DIRECTIVE 79/1070/EEC amending Directive 77/799/EEC concerning
mutual assistance by the competent authorities of the Member States in the field of direct
taxation (OJ No. L 331, 27.12.79, pp. 8- 9);

COUNCIL DIRECTIVE 92/12/EEC on the general arrangements for products subject to
excise duty and on the holding, movement and monitoring of such products (OJ No. L 76,
23.03.1992, pp. 1-13);
COUNCIL DIRECTIVE 2003/93/EC amending Council Directive 77/799/EEC
concerning mutual assistance by the competent authorities of the Member States in the
field of direct and indirect taxation (OJ No. L 264, 15.10.2003, pp. 23- 24);
COUNCIL DIRECTIVE 2004/56/EC amending Council Directive 77/799/EEC
concerning mutual assistance by the competent authorities of the Member States in the
field of direct taxation, certain excise duties and taxation of insurance premiums (OJ No.
L 127, 29.04.2004, pp. 70- 72);
COUNCIL DIRECTI VE 2004/106/EC amending Directives 77/799/EEC concerning
mutual assistance by the competent authorities of the Member States in the field of direct
taxation, certain excise duties and taxation of insurance premiums and 92/12/EEC on the
general arrangements for products subject to excise duty and on the holding, movement
and monitoring of such products (OJ No. L 359, 04.12.04, pp. 30- 31);
on mutual assistance for the recovery of claims resulting from operations forming part of
the system of financing the Eur opean Agricultural Guidance and Guarantee Fund, and of
the agricultural levies and customs duties (OJ No. L 73, 19.03.1976, pp. 18 -23);
Council Directive 79/1071/EEC amending Directive 76/308/EEC mutual assistance for
the recovery of claims resulting from operations forming part of the system of financing
of the European Agricultural Guidance and Guarantee Fund, and of agricultural levies
and customs duties (OJ No. L 331, 27.12.1979, p. 10);
Council Directive 92/108/EEC amending Directive 92/12/EEC on the g eneral
arrangements for products subject to excise duty and on the holding, movement and
monitoring of such products and amending Directive 92/81/EEC (OJ No. L 390,
31.12.1992, pp. 124- 126);

Council Directive 2001/44/EC amending Directive 76/308/EEC on mutual assistance for
the recovery of claims resulting from operations forming part of the system of financing
the European Agricultural Guidance and Guarantee Fund, and of agricultural levies and
customs duties and in respect of value added tax and certain e xcise duties (OJ No. L 175,
28.06.2001, pp. 17- 20);
Commission Directive 2006/84/EC adapting Directive 2002/94/EC laying down detailed
rules for implementing certain provisions of Council Directive 76/308/EEC on mutual
assistance for the recovery of claims relating to certain levies, duties, taxes and other
measures, by reason of the accession of Bulgaria and Romania (OJ L 362, 20.12.2006,
pp. 99–100).
2 RT = Riigi Teataja = State Gazette
3 Riigikogu = the parliament of Estonia
4 Ametlikud Teadaanded = Official Notices