e-Estonia: The ERDF and the digitalisation of Estonia Külli Kraner

Director of Foreign Funding DepartmentMinistry of Economic Affairs and

Communication24.06.2015

Overall Estonian EU 2004-2020 Budget

2004-2006 2007-2013 2014-20200

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

Total State MKM

MoEAC = Entrepreneurship, Innovation, transport, ICT and

Energy Efficiency

E&I Transport ICT Energy Efficiency0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

2004-2006 2007-2013 2014-2020

Total Information Society and ERDF

2004-2006 2007-2013 2014-20200

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

200000000

Total ICT ERDF

Estonian Information Society in 2020

Information society vision 2020:

In Estonia, ICT is used to full extent in order to:

• Improve the quality of life for people

• Increase productivity and the employment rate

• Ensure preservation of Estonian cultural heritage

• Make the public sector more efficient

• Kirjatüüp Roboto Condensed

• Joondus vasakule

• Pealkirja rasvakirjas ja soovitatav suurus 36

• Sisuteksti soovitatav suurus 32

Priority: Infrastructure for ICT services

Objective 1: Whole population of Estonia has access to high-speed Internet

Example: http://ela12.elasa.ee/elakaart/

Under this investment priority, support will be provided for the construction and upgrading of the basic network

Indicator: Total length of next-generation broadband network constructed (3500 km by 2020)

Priority: Infrastructure for ICT services 2

Objective 2: The basic service infrastructure supports the take up of e-services in Estonia and cross-border

Example: https://e-estonia.com/

Although the service infrastructure of the state (X-Road, eID, information portals etc.) has been constantly developed, it still needs to be updated in view of the rapid development of technology

E-residency rely on that!

Priority: Administrative capacity

Objective: Public services are provided accessibly, uniformly and in a user-centered and smart manner

Example: https://www.eesti.ee/eng

The following interventions for the development of public services are proposed under the specific objective:

1) conducting analyses, evaluations and studies, carrying out the work of cooperation networks, and training activities.

2) smart development of new and existing information systems from the point of view of customers and servicesIndicator: Satisfaction with the quality of public services (in the 16-74 age group) must be 85% by 2020

E-Estonia and ERDF

• Electronic ID card

• Education and healthcare

• E-elections

• E-business

• E-residency

https://e-estonia.com/

“e-Residency offers to every world citizen a government-

issued digital identity and the opportunity to run a trusted

company online, unleashing the world’s entrepreneurial

potential.“

E-Residency - 10 million e-Estonians

• The project began in May 2014

• The project has been spotted all over the world

• 60% for business, 30% for personal use

• 20 000 early subscribers from 168 countries

• Top: Finland, Latvia, Ukraine, Russia, USA

• Direct costs = 0 EUR

2500 e-Residents

Applying History

e-Residents enjoy the following benefits

• Ability to register a new company within a day

• Low startup and maintenance costs

• Remote administration from anywhere in the world

• 0% company income tax means more money to invest

• Minimal bureaucracy and clear tax framework

• Company belongs to EU legal framework

• Companies registered in the EU are regarded as more trustworthy

e-Residency unlocks the entrepreneurial

potential of every world citizen

e-resident.gov.ee@e_Residents / #eResidents

Is this the beginning of the end of the

nation state?

http://www.abc.net.au/7.30/content/2014/s4136006.htm

How to apply for e-Residency?

https://e-estonia.com/e-residents/apply

/

Aitäh!Külli Kranerkylli.kraner@mkm.ee

Questions:Q: Where do the taxes go?

Answer: Tax residency is different from the Estonian e-residency. E-residency doesn’t change the tax residency for tax purposes.