Taxpayers registration

ande-services provided by the Estonian Tax and Customs Board

Karin AleksandrovChief ExpertService Management Department

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ESTONIA• Population 1.35 million• Internet usage 71%• Internet banking 98%• Wifi connection is available in more than 1100 public places

ESTONIAN TAX AND CUSTOMS BOARD• state agency under the Ministry of Finance• ca 2000 officials • tasks: collecting taxes to the state budget and protection of society and the economy• clients: all taxpayers, both natural and legal persons (incl 123 000 companies and 35 000 self-employed), and customs clients• the first public body in Estonia that started to offer electronic services to its clients

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Taxpayers’ registration based on other state registers

Estonian Tax and Customs Board maintains the Register of Taxable Persons in order to ensure the performance of functions imposed on the tax authority by law

Registration of taxable persons in Estonia is based on data of other registers:

Data about natural persons: from the Population Register

Data about legal persons: through the Centre of Registers and Infosystems that keeps different state registers, e.g

� Commercial Register

� Non-profit Associations and Foundations Register

� Register of Religious Associations

� Register of State and Local Government Agencies

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Taxpayers’ registration at the Tax and Customs Board

The following persons are registered at the Tax and Customs Board:

VAT-liable persons permanent establishment of a foreign legal person non-resident employers

based on the taxpayer’s application

non-resident paying land tax in Estonia

based on the information from local governments

non-resident submitting the income tax return in Estonia

based on the information from the income tax return

notaries, sworn translators or bailiffs based on the information from the Ministry of Justice

etc

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The unique Personal Identification Code

The Personal Identification Codes (PIC) are generated and maintained by the Population Register of Estonia

PIC is a 11-digit number formed on the basis of the gender and date of birth of a person

Identification information with regard to legal persons is provided through the Centre of Registers and Infosystems. Although companies and organisations have a unique register code, there is no such thing as “eID of the company”. All transactions with regard to legal persons are performed by physical persons using their personal ID Code; corresponding access rights are maintained separately.

PIC functions as a unique identifier for Estonian citizens and residents in both governmental and business services.

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The ID-card - primary personal identification document in Estonia

the ID card has 3 main functions :

1) visual identification

2) authentication when utilizing online services

3) digital signing

the card contains a chip holding a personal data file (incl PIC) and two certificates: one for authentication purposes, and one for qualified digital signatures

the ID-card certificates are linked to the various registers through the Personal Identification Code

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E-services with the ID-card

• signing documents digitally;

• getting access to the databases and information systems of the public sector via the X-Road – an interface between databases with standard authentication system;

• using Internet-based services provided by the state as well as by private companies:

online banks

company services

public services: e-school, ID-ticket, etc

governmental services: e-elections, Commercial Register, e-Tax/e-Customs, etc

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

e-Tax/e-Customs – tax and customs services on the Internet was opened in 2000 offers 24 hours a day

about 30 services for natural persons over 50 services for legal persons

enables secure data exchange, personal information high-speed, simple, convenient, paper-free is a quite unique technical solution on the European tax map as to taxpayer service and communication

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How to become a user of the e-Tax/e-Customs

An agreement for the use of the e-tax/e-customs is concluded with the Tax and Customs Board natural persons - electronically when gaining the first access

to the e-Tax/e-Customs

legal persons – in the tax and customs office

All services to private client are available immediately after the conclusion of the agreement

On behalf of a legal person, on the basis of a power of attorney on or more natural persons may use the e-services. It is possible to determine for every authorised person which services meant for a business client he/she may use in the e-Tax/e-Customs

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Using e-Tax /e-Customs via secure gates

using ID card

using mobile-ID

entering with passwords

Internet banks(7 banks – cooperation partners)

Portal (home page) of the Tax and Customs Board: www.emta.ee

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7 reasons to file the Income Tax Return

via e-Tax/e-Customs

saving time and nerves

income tax return is pre-filled

instant tax calculation

help within the reach of a phone call

money back within five working days

no additional expenses for taxpayers

environment in Russian and English also available

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Example of Functionality:Natural Person Income Tax Return

1. Collect information

2. Pre-fill the return

4. Refund

or

inform

3. Let the taxpayer confirm or correct

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Example of Functionality (2)

Banks, pension funds, insurance,educational institutions, employers and others provide data to TCBWe pre-fill the tax return for the taxpayer and make it available on the Internet or in the service office

The taxpayer reviews the return and confirms or corrects it or asks the information provider to correct their information

If everything is OK, we’ll refund in 5 working days

If there are problems, we’ll inform the taxpayer via the Internet what was wrong or what he or she has to do

Our computerwill check theinformation

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Statistics of the electronically filed tax returns: Corporate Income Tax and Employer Tax Returns – 96.8% VAT Returns – 97.6% Natural Person Income Tax Returns – 92.4% Customs Declarations – 99.8%

E-Tax/e-Customs is the most frequently used service E-Tax/e-Customs is the most frequently used service channel of thechannel of the Estonian Tax and Customs Board – Estonian Tax and Customs Board – 95%95% of of the clients have used it and the service was rated the clients have used it and the service was rated 4.544.54 on on a 5-point scalea 5-point scale(Data of the client satisfaction survey 2008)(Data of the client satisfaction survey 2008)

e-Tax/e-Customs is popular

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Thank you!

karin.aleksandrov@emta.ee

www.emta.ee