In 2002 the system reached a major developmental milestone with the introduction of automated tax declaration forms. Using a secure e-ID, the taxpayer logs onto the system, reviews their data in pre-filled forms, makes the necessary changes, and finally, approves the document with their digital signature. The process typically takes three to five minutes, and as a result, over 97% of tax declarations in Estonia are now filed electronically.
“No Passwords to login e-Tax: Beginning Jan 01, 2019 e-Tax will only be accessible using digital identity such as e-ID, Mobile-ID or Smart-ID for residents. e-Residents will access using digital identity document of e-Residency. “
Even one-click tax returns have been possible since 2015 – the data that is already in the system is displayed for the user along with the calculated result, then all the users have to do is click on the confirmation button. All this can take less than a minute.
In addition to individual income tax claims, other declarations can be made in the system:
- An enterprise’s declarations for income tax, social tax, unemployment insurance and contributions to the mandatory pension fund
- Value-added tax returns
- Alcohol excise, tobacco excise, fuel excise and packaging excise duty returns
- INF declarations
- Customs declarations