KPMG InfoCourier February 2017

KPMG InfoCourier February 2017

InfoCourier is a monthly newsletter which gives an overview of the latest changes in legislation.

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KPMG InfoCourier February 2017

It is time to submit personal income tax returns

We would like to remind you that residents and non-residents have to submit their personal income tax returns on 31 March 2017 at the latest. It has been possible to submit income tax returns since 15 February electronically via the e-Tax website or on paper.

For further information, please contact Einar Rosin, tax adviser, erosin@kpmg.com

A detailed overview in Estonian is available

Green paper on Packaging Excise Duty Act

The Ministry of Finance has submitted a green paper on developing a new version of the Packaging Excise Duty Act to ministries and interest groups to receive their opinions about it.

With amendments the ministry wishes to draw attention from consequences, i.e. recovery of packaging, to problem avoidance, i.e. reduction of excessive packaging and packaging placed on the market.

For further information, please contact Merike Oja, tax adviser, moja@kpmg.com

A detailed overview in Estonian is available.

 

Court decision: Late payment interest rate reviewed by the court

On 5 December 2016, the Tallinn Administrative Court made a decision, according to which a provision of the Taxation Act was deemed unconstitutional and was not applied. Based on that provision, the rate of late payment interest for tax liabilities is 0.06% for each day of delay. The court explained that if a taxpayer is the one who discovers an error in tax accounting and uses his/her initiative to correct it, i.e. without the Tax and Customs Board’s control procedures, the tax rate of 0.06% is too high.

For further information, please contact Joel Zernask, head of tax services, jzernask@kpmg.com

A detailed overview in Estonian is available.

 

Court decision: Deduction of input VAT and rooms used for business purposes or as dwellings

On 26 January 2017, the Administrative Law Chamber of the Supreme Court made decision no. 3-3-1-53-16. This concerns a situation where the Tax and Customs Board, based on a notice of assessment, reduced the input VAT deducted during the construction of a holiday home by a company, as the Tax and Customs Board came to the conclusion that the company did not build the holiday home for taxable supply. The court took the position that if the premises are still under construction and if there are no obstacles to realising the business plan, the taxpayer should be given an opportunity to deduct input VAT immediately. The Supreme Court sent the matter back to a lower court. 

For further information, please contact Merike Oja, tax adviser, moja@kpmg.com

A detailed overview in Estonian is available.

© 2017 KPMG Baltics OÜ, an Estonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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