10 February 2018 is the last day for declaring past circumstances that allow tax free distributions from the equity of a company. Failure to hand in a declaration can result in loss of tax exemption.
In 2015 an amendment was enacted to the Estonian Income Tax Act under which all resident legal persons and non-resident legal persons having a permanent establishment in Estonia had to declare circumstances entitling them to tax free withdrawal of money invested. The declaration had to be handed in by 10 February 2015. The final possibility to hand in the declaration is 10 February 2018, allowing for a 3-year deadline to amend past declarations.
To obtain tax exemption, it is necessary to declare the following circumstances in the income and social tax declaration for January 2015:
- contributions to company equity,
- income tax withheld and paid in a foreign state,
- income received from which a tax free dividend can be paid and payments made from equity,
- similar rights, which used to belong to another company, received in the course of merger, division or transformation of companies.