Factsheet for measure
EE-2020-10/341
–
Updated
– measures in Estonia
Interests on tax arrears suspended/reduced
Maksuvõlgade intressi arvestamise peatamine/vähendamine
Background information
Due to reduced income of companies, there are difficulties foreseen in relation to paying taxes by the companies. Collecting interest on these tax arrears further worsens the situation of the companies. Therefore, the government decided that while tax obligation remains in place, there are other ways to reduce the burden of the companies. For suspending the interests on tax arrears, a government decree was changed and relevant subsection was added.
Content of measure
The Estonian Tax and Customs Board suspended the calculation of interests on tax arrears of companies from 1 March 2020 until the end of the emergency situation (currently 17 May 2020). After the end of the emergency situation, the interest rate is reduced from 0.06% to 0.03% per day until the end of 2021.
Also, companies with deferred taxes or deferred tax debt can have interest rate reduced by up to 100% from 1 May 2020 to 31 December 2021. Usually, the interest rate can be reduced up to 50%.
Additionally, no tax arrears are published in public business registries as usual.
Updates
The following updates to this measure have been made after it came into effect.
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10 July 2020
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As of 25 May 2020, tax arrears are again published in public business registries.
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Use of measure
According to Tax and Customs Board, by 25 May 2020, more than 10,000 companies had incurred a tax debt more than €50 during the emergency situation. The total amount of the tax debt was €128 million. 4,000 companies had deferred their tax debt.
Target groups
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Workers
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Businesses
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Citizens
|
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Company / Companies
Other social actors (e.g. NGOs)
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No special funding required
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: Unknown
Involvement
n.a.
Views and reactions
No information to add.
Sources
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18 March 2020: How the state and Tax Board help companies in trouble (Kuidas riik ja MTA aitavad raskustesse sattunud ettevõtjaid)
(www.emta.ee)
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23 March 2020: Government decree (Valitsuse määrus)
(www.riigiteataja.ee)
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25 May 2020: Tax Board published debts again (MTA avas tänasest avaliku võlapäringu)
(www.emta.ee)
