Chapter 1 General Provisions
§ 1. Scope of application of Act
(1) This Act provides the rights and obligations relating to international automatic exchange of information necessary for determination of the amount of tax liability related to direct taxes.
(2) The Taxation Act and Acts concerning a tax are primarily applied to the issues within the scope of application of this Act but not regulated in this Act.
(3) In case the regulation of this Act is different from the provisions of an international agreement, the provisions of the international agreement are applied.
§ 2. Terms
In this Act the terms are used in the following meaning:
1) the tax authority is the Tax and Customs Board;
2) a legal arrangement is an association of persons or a pool of assets without the status of a legal person and a branch of an association of persons or a pool of assets without the status of a legal person;
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3) an information source is a person or legal arrangement, which, on the basis of this Act or any other legislation, provides data to the information provider to be used for the compliance with this Act;
4) a data subject is the data subject for the purposes of the Personal Data Protection Act;
5) an information provider is a person or legal arrangement which is granted rights and imposed obligations by this Act; the information provider is not the tax authority, information source or data subject;
6) a competent authority of a foreign state is a foreign person or body that is a competent authority in accordance with an international agreement or the relevant legislation of the European Union;
7) the exchange of information is the automatic communication of information, needed to determine the amount of tax liability relating to direct taxes, on the basis of an international agreement or under the relevant legislation of the European Union, from the tax authority to a competent authority of a foreign state and the other way around;
8) the automatic communication of information is the communication of information on a regular basis, without request, in a specified manner and volume;
9) the collection of information is the obtaining of information necessary for the exchange of information from the information provider and the requesting by the tax authority of information, necessary for the exchange of information, from the information provider.
§ 3. Collection of information
(1) The Taxation Act is applied to the activities of the tax authority related to the compliance with this Act and the Agreement between the Government of the Republic of Estonia and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA (hereinafter the FATCA Agreement).
(2) The provisions concerning tax returns provided in the Taxation Act are applied to the declarations established based on this Act, taking into account the provisions of this Act.
(3) The tax authority collects information for the current year and five preceding calendar years.
§ 4. Exchange of information
(1) The tax authority has the right for the exchange of information.
(2) The exchange of information does not have to be mutual.
(3) The exchange of information may include all the information in the possession of the tax authority for the current year and five preceding calendar years, the exchange of which is prescribed by an international agreement or relevant legislation of the European Union, including:
1) remuneration from employment and remuneration or service fees paid on the basis of a contract for services or authorisation agreement or any other contract under the law of obligations;
2) remuneration paid to members of management or supervisory bodies of a legal person;
3) the insurance amount and insurance benefits paid under the life insurance contract;
4) pension paid;
5) income from immovable property;
6) licence fee.
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(4) The tax authority may enter into an administrative international agreement with a competent authority of a foreign state in order to specify the functioning of the exchange of information.
§ 41. Non-European Union exchange of financial accounts and country-by-country report information
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(1) The provisions of Chapters 1, 11 and 3 of this Act are applied also to the automatic exchange of tax information of financial accounts based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter Convention).
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(11) The provisions of Chapters 1, 22 and 3 of this Act are also applied to the automatic exchange of country-by-country report information in accordance with an international agreement and based on Article 6 of the Convention.
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(12) The provisions of Chapter 24 of this Act are also applied to the automatic exchange of platform-related information in accordance with international agreements and based on Article 6 of the Convention.
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(2) The tax authority has the information and supervision obligation related to the exchange of tax information of financial accounts based on Article 6 of the Convention.
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§ 5. Restriction on use of information
(1) Information obtained by means of collection of information and exchange of information is regarded as tax secrecy for the purposes of the Taxation Act.
(2) Information obtained under an international agreement may be disclosed by the tax authority under the conditions provided in §§ 26–30 of the Taxation Act, taking into account the provisions of the international agreement.
(3) Information obtained in accordance with the relevant legislation of the European Union may be disclosed by the tax authority under the conditions provided in §§ 26–30 of the Taxation Act, taking into account the provisions of the relevant legislation of the European Union.
§ 6. Information protection and processing
(1) The objective of the processing of information on the basis of this Act is:
1) to enable the tax authority and the competent authority of a foreign state to accurately and without doubt identify relevant taxable persons, to administer and enforce the legislation on taxes in cross-border situations, to evaluate the likelihood of tax evasions and to avoid further useless investigations;
2) to comply with obligations undertaken by the FATCA Agreement unspecified in clause 1 of this subsection.
(11) The tax authority is not permitted to use the data obtained during the automatic exchange of country-by-country report information as the sole or main basis for the transfer pricing adjustments specified in subsection 2 of § 8 of the Income Tax Act.
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(2) Upon establishment of business relations, the information provider notifies the customer in a form reproducible in writing of the collection, exchange and automatic communication of information carried out based on this Act for the purposes of the Money Laundering and Terrorist Financing Prevention Act. The provisions of the first sentence of this subsection are not applied to an information provider who does not have an obligation to submit the information collected for exchange of information to the tax authority.
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(3) In addition to the obligations provided in the Personal Data Protection Act, the tax authority must submit, at the request of the data subject, an extract of the information related thereto, obtained in the course of the collection of data for the current year and five previous calendar years and communicated in the course of the exchange of information, and of the authorisations granted on the basis of subsection 2 of § 517 of the Taxation Act concerning this information.
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(4) In case the data subject proves that information for the current year and five previous calendar years communicated to the tax authority during the collection of information is incorrect due to the information provider, the information provider submits the corrected information to the tax authority at the earliest opportunity.
(5) The tax authority communicates the information corrected in accordance with subsection 4 of this section to the competent authority of a foreign state and requests deletion of the information previously communicated.
(6) In case the data subject proves that the tax authority has, in the course of the exchange of information, communicated information for the current year and five previous calendar years to a competent authority of such a state where the data subject was not a tax resident during the period that the data concern, the tax authority requests the competent authority of a foreign state to delete the corresponding information.
§ 7. Incurring costs
The tax authority and information provider bear their own costs relating to the compliance with this Act.
§ 71. Transactions and acts performed to avoid collection of information
In case it follows from the content of a transaction or act that it has been performed to avoid collection of information, this is not taken into account upon application of this Act.
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§ 8. Compliance with obligations of collection and exchange of information
(1) Upon receipt of the request the information source provides the information provider with the data without which the information provider is not able to comply with this Act. The data are submitted within 30 calendar days unless a shorter term is prescribed in accordance with this Act.
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(11) Where the seller has not provided the required information to the platform manager despite two reminders, the platform manager closes the seller's account and prevents the seller from re-registering it or fails to hand over the payment to the seller until the seller provides the required information. The implementation of these measures is allowed after the second reminder is presented, but not before 60 days have passed since the initial request for information.
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(2) The information source ensures the accuracy of data used for compliance with this Act upon the submission of the data to the information provider.
(3) The information provider retains all the evidence confirming the compliance with the obligation to collect information as well as the compliance with other obligations related to the FATCA agreement at least for the current year and six previous calendar years, but not for more than ten years, taking into account the principle of expediency provided in Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons in the processing of personal data and on the free movement of such data and on the repeal of Directive 95/46/EC (General Regulation on the Protection of Personal Data) (OJ L 119, 04.05.2016, pp 1–88).
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(4) In case the information provider finds that the information for the current year or five preceding calendar years communicated to the tax authority is incorrect due to the information provider, the information provider submits the revised information to the tax authority at the earliest opportunity.
Chapter 11 Automatic tax information exchange of financial accounts in European Union
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§ 81. Financial account
(1) For the purposes of this Chapter a financial account is an account kept by an Estonian financial institution, which satisfies all the requirements in accordance with the conditions provided in Division C of Subchapter 8 of Annex I of the Council Directive 2011/16/EU on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC ( OJ L 64, 11.03.2011, pp 1–12) (hereinafter the Directive).
(2) The financial account kept by the Estonian Central Securities Depository is a financial account which is opened based on § 61 or subsection 4 of § 11 of the Securities Register Maintenance Act, or the account manager of which is, for the purposes of the Securities Register Maintenance Act, a non-reporting financial institution.
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(3) A financial account not specified in subsection 2 of this section is deemed to be kept by the account manager for the purposes of the Securities Register Maintenance Act.
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(4) A financial account excluded from the exchange of information for the purposes of this Chapter is an account complying with clause 17 of Division C of Subchapter 8 of Annex 1 of the Directive to which the reporting and due diligence measures are not applied.
(5) A financial account other than that specified in the Directive precluded from the exchange of information complying with subclause g of clause 17 of Division C of Subchapter 7 Annex 1 of the Directive is:
1) a pension contract for the purposes of subsection 1 of § 45 of the Funded Pensions Act;
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2) [Repealed – RT I, 29.12.2022, 1 – entry into force 01.01.2023]
3) a securities account where no other units are registered except for the units of mandatory and voluntary pension funds specified in the Funded Pensions Act.
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§ 82. Tax information of financial accounts
(1) For the purposes of this Chapter tax information of financial accounts is the information specified in subsection 3a of Article 8 of the Directive related to the keeping of a financial account submitted to the tax authority by a reporting Estonian financial institution.
(2) Reporting and due diligence measures for the purposes of this Chapter are reporting and due diligence measures applicable to identification of tax information of financial accounts provided in Annexes 1 and 2 of the Directive.
(3) The exchange of information may include tax information of financial accounts.
(4) The type of income included in the tax information of financial accounts is determined and the type, balance or value of an account of the specified income are calculated in euros, taking account of the provisions of the Income Tax Act.
(5) The tax information declaration forms for financial accounts and the procedure for submission and fulfilling the declarations are established by a regulation of the minister in charge of the policy sector.
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§ 83. Information provider
(1) An information provider for the purposes of this Chapter is an Estonian financial institution.
(2) For the purposes of this Chapter a reporting Estonian financial institution is an institution established or formed in Estonia or an Estonian branch of a foreign institution which complies with the conditions provided in Division A of Subchapter 8 of Annex 1 of the Directive.
(3) For the purposes of this Chapter a non-reporting Estonian financial institution is an Estonian financial institution, complying with the conditions provided in Division B of Subchapter 8 of Annex 1 of the Directive, which is exempt from applying reporting and due diligence measures.
(4) For the purposes of § 3 of the Funded Pension Act the mandatory pension fund and the voluntary pension fund are non-reporting Estonian financial institutions, other than those specified in the Directive, complying with the conditions provided in subclause c of clause 1 of Division B of Subchapter 8 of Annex 1 of the Directive.
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§ 84. Controlling person
For the purposes of this Chapter the identification of the controlling person of a company is based on the definition of the beneficial owner in the Money Laundering and Terrorist Financing Prevention Act.
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§ 85. Confirmation of account holder and controlling person
(1) The confirmation of an account holder that is a natural person and of the controlling person of the company that is a natural person is a confirmation of tax residency of the person in writing or in a form reproducible in writing, which includes at least the following data::
1) the name of the account holder or of a controlling person of the company;
2) address of the place of residence;
3) tax residences;
4) the identification number(s) of the taxable person;
5) the date of birth;
6) the place of birth to the accuracy of the state or jurisdiction;
7) the time of submitting the confirmation.
(2) The account holder may submit the confirmation on behalf of the controlling person of the company who is a natural person.
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§ 86. Obligations of information provider
(1) The information provider refrains from any action aimed at evasion of the collection of tax information of financial accounts.
(2) A reporting Estonian financial institution applies the reporting and due diligence measures specified in subsection 2 of § 82 of this Act and identifies annually the tax information of financial accounts kept thereby. The data of the non-resident account holder and the non-resident controlling person of the company and the data of such company are collected regardless of whether tax information is involved in the exchange of information.
(3) A reporting Estonian financial institution submits to the tax authority the tax information of financial accounts, identified in accordance with subsection 2 of this section, for the previous calendar year by 30 June annually by electronic declaration.
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§ 87. Compliance with obligations through third party
A reporting Estonian financial institution may perform the obligations provided in this Chapter through a third party. The reporting Estonian financial institution bears liability for the compliance with the obligations.
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§ 88. Obligations of tax authority
(1) The tax authority has the notification and supervision obligation provided in subsection 7a of Article 8 of the Directive.
(2) The tax information of financial accounts communicated to the tax authority, which is not included in the exchange of information, is deleted by the tax authority.
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Chapter 2 Compliance with FATCA Agreement
§ 9. Application of FATCA Agreement
Implementation of the FATCA Agreement is based in particular on the FATCA Agreement, taking into account the provisions of this Act.
§ 10. Information provider
(1) An information provider for the purposes of this Chapter is an Estonian financial institution.
(2) The Estonian financial institution is an institution established or constituted in Estonia in accordance with the conditions of clause g of subsection 1 of Article 1 of the FATCA Agreement, including:
1) a credit institution and the Estonian branch of a foreign credit institution;
2) a savings and loan association;
3) an investment firm and the Estonian branch of a foreign investment firm;
4) a management company and the Estonian branch of a foreign management company;
5) an investment fund;
6) an insurer engaged in life insurance and the Estonian branch of a foreign insurer;
7) a central securities depository.
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(3) The financial accounts kept by a central securities depository are financial accounts which are opened on the basis of subsection 4 of § 11 the Securities Register Maintenance Act, or the account manager of which is, for the purposes of the Securities Register Maintenance Act, a non-participating financial institution.
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(4) The financial accounts not specified in subsection 3 of this section are deemed to be kept by the account manager for the purposes of the Securities Register Maintenance Act.
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§ 11. Additional terms related to compliance with FATCA Agreement
(1) The representative of the Minister of Finance of Estonia is the tax authority for the purposes of subclause 2 of clause f of subsection 1 of Article 1 of the FATCA Agreement.
(2) The controlling person for the purposes of clause mm of subsection 1 of Article 1 of the FATCA Agreement is the beneficial owner for the purposes of the Money Laundering and Terrorist Financing Prevention Act.
(3) The confirmation of an account holder that is a natural person and of a controlling person of the company that is a natural person is a confirmation of the tax residency of the person in writing or in a form reproducible in writing, which includes at least the following data:
1) the name of the account holder or of a controlling person of the company;
2) address of the place of residence;
3) tax residences;
4) the identification number or numbers of the taxable person;
5) the date of birth;
6) the place of birth to the accuracy of the state or jurisdiction;
7) the time of submitting the confirmation.
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(4) The account holder may submit confirmation on behalf of the natural person who is controlling the company.
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(5) The due diligence measures are the measures described in Annex I to the FATCA Agreement.
§ 12. Performance of obligations through third party
A reporting Estonian financial institution may perform the obligations provided in this Chapter through a third party, including the obligation to submit the declaration, to the extent specified in clause F of Part VI of Annex I of the FATCA Agreement. The responsibility related to the compliance with the obligations relies on the reporting Estonian financial institution.
§ 13. Specification of application of FATCA Agreement
(1) An Estonian financial institution does not have the right specified in subsection 7 of Article 4 of the FATCA Agreement.
(2) The accounts of a company opened during the period of 1 July to 31 December 2014 may be considered as the pre-existing company accounts by an Estonian financial institution. Upon treating these accounts as the pre-existing company accounts the possibility of the postponement of taking due diligence measures provided in clause A of Part VI of Annex I of the FATCA Agreement is not applied to these accounts.
§ 14. Specification of application of due diligence measures
(1) Upon taking due diligence measures, Annex I of the FATCA Agreement is not applied as provided in:
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1) clause C of Part I;
2) subclause 3 of clause A of Part II;
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3) [Repealed – RT I, 21.12.2019, 22 – entry into force 01.01.2020]
4) clause A of Part V.
(2) The reporting Estonian financial institution may apply the specifications provided in subclauses 1, 2 and 4 of clause A of Part II of Annex I and subclause A of Part IV of Annex I of the FATCA Agreement upon taking due diligence measures. The specifications are applied in a uniform manner to all the financial accounts of a reporting Estonian financial institution.
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§ 15. General obligations of Estonian financial institutions
(1) An Estonian financial institution refrains from any action aimed at evasion of the collection of information related to the FATCA Agreement.
(2) In case an Estonian financial institution has an affiliated company or branch corresponding to the conditions specified in subsection 5 of Article 4 of the FATCA Agreement, the Estonian financial institution complies with the conditions provided in subclauses a–c of subsection 5 of Article 4 of the FATCA Agreement.
§ 16. Data collection obligation of reporting Estonian financial institution
(1) A reporting Estonian financial institution collects:
1) data specified in clause a of subsection 2 of Article 2 of the FATCA Agreement for 2014 and subsequent years under the conditions specified in the same clause with the specifications given in clause a of subsection 3 of Article 3, subsection 4 of Article 3, subsection 4 of Article 6 and Annex II of the FATCA Agreement;
2) the data on payments made to the non-participating financial institutions in 2015 and 2016.
(2) Upon the collection of data provided in subsection 1 of this section the reporting Estonian financial institution applies the due diligence measures given in Annex I to the FATCA Agreement, taking into account the provisions of §§ 13 and 14 of this Act.
(3) The type and amount in euros of the amounts included in the data specified in clause 1 of subsection 1 of this section are determined, taking into account the provisions of the Income Tax Act.
(4) The type and amount of the amounts included in the data specified in clause 2 of subsection 1 of this section are determined in euros, taking into account the provisions of subsection 5 of § 36 of the Income Tax Act.
(5) The data specified in subsection 1 of this section for the previous calendar year are collected at the latest by 30 June.
§ 17. Additional obligations of reporting Estonian financial institution
(1) In addition to the obligations specified in §§ 15 and 16 of this Act a reporting Estonian financial institution complies with subsection 1 of Article 4 of the FATCA Agreement as follows:
1) registration requirements specified in clause c;
2) requirements specified in clause d in case it meets the requirements for the Estonian financial institutions set out in the same clause;
3) requirements specified in clause e in case it meets the requirements for the Estonian financial institutions set out in the same clause.
(2) A reporting Estonian financial institution immediately registers with the State Revenue Service of the United States of America.
§ 18. Collection and exchange of information
(1) A reporting Estonian financial institution submits a declaration to the tax authority electronically in accordance with subsection 1 of § 16 of this Act:
1) with the data collected for the calendar year by 30 June of the following year in accordance with clause 1;
2) with the data collected in accordance with clause 2 by 30 June 2016 and 30 June 2017 respectively.
(2) The tax authority communicates the information received based on subsection 1 of this section to a competent authority of the United States of America electronically at the latest by 30 September of the same year.
(3) The forms of declarations specified in subsection 1 of this section and the procedure for the submission and completion thereof are established by a minister in charge of the policy sector.
§ 19. Rights and obligations of tax authority
(1) The tax authority performs the functions of a competent authority under the FATCA Agreement unless a minister in charge of the policy sector decides otherwise, taking into account the provisions of this Act.
(2) The tax authority immediately takes measures to eliminate a violation specified in Article 5 of the FATCA Agreement committed by Estonia or an Estonian financial institution and approaches a competent authority of the United States of America in case there is any doubt that the United States of America or a financial institution of the United States of America has committed a violation described in Article 5 of the FATCA Agreement.
(3) The tax authority has the right to enter into agreements with the United States of America for amendment of Annex II of the FATCA Agreement under the terms and in accordance with the procedure provided therein.
§ 20. Application of more favourable conditions
The minister in charge of the policy sector approves the application of more favourable conditions specified in subsection 2 of Article 7 of the FATCA Agreement or refuses to approve them and notifies the Treasury Department of the United States of America thereof.
Chapter 21 Automatic exchange of information of preliminary rulings in European Union
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§ 201. Object of exchange of information
(1) The automatic exchange of information on preliminary rulings may include data concerning such binding preliminary ruling of the tax authority specified in § 911 of the Taxation Act that deals with taxation of a cross-border operation, or an issue related to the creation of permanent establishment in a foreign state or another jurisdiction (hereinafter preliminary ruling).
(2) For the purposes of subsection 1 of this section such an operation or set of operations are cross-border in which:
1) at least one of the parties is a tax resident of another state or jurisdiction;
2) at least one of the parties is simultaneously a tax resident of several states or jurisdictions;
3) at least one of the parties is engaged in business activities in another state or jurisdiction through a permanent establishment and an operation or set of operations forms a part or the whole of the business activities of such permanent establishment;
4) the impact is cross-border.
(3) The automatic exchange of information does not include data concerning such a preliminary ruling that deals only with the taxation of operations between natural persons.
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§ 202. Information communicated with regard to preliminary ruling
(1) The tax authority may communicate to all the competent authorities of the Member States of the European Union the following data with regard to the preliminary ruling:
1) data enabling identification of the taxable person and, where necessary, data concerning the group of persons into which the person belongs;
2) a summary, including a description of the relevant business activity or transaction or set of transactions and other information relevant for tax risk assessment, guided by the obligation to maintain business secrecy;
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3) date of issue of the preliminary ruling;
4) date of beginning and end of the potential duration of validity of the preliminary ruling;
5) type of the preliminary ruling;
6) monetary value of the relevant operation or set of operations in case it is referred to in the preliminary ruling or agreement;
7) reference to another Member State of the European Union likely to be affected by the preliminary ruling;
8) reference to a person, resident or operating in another Member State of the European Union likely to be affected by the preliminary ruling.
(2) Information is not automatically exchanged regarding natural persons related to the acts dealt with in the preliminary ruling.
(3) The tax authority may communicate information on the preliminary ruling specified in clauses 3–7 of subsection 1 of this section to the European Commission.
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Chapter 22 Automatic exchange of information on country-by-country reporting in European Union
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§ 203. Country-by-country report
(1) For the purposes of this Act the country-by country report is such a report concerning multinational enterprise groups which includes:
1) aggregate information on a group of multinational companies relating to the amount of revenue, profit or loss before income tax, income tax paid and accrued, share capital, retained earnings, number of employees and tangible assets other than cash or cash equivalents by each such state and jurisdiction in which the group of multinational companies operates, and;
2) information enabling identification of the members of the group of multinational companies, including information relating to the state or jurisdiction of tax residency of the member of the group or on the basis of the legislation of which it is formed in case it is different from the jurisdiction of tax residency, and information on the main business activities of the members of the group.
(2) A group of multinational companies specified in subsection 1 of this section is a group defined in clause 3 of Subchapter 1 of Annex III to Directive, at least one member of which is a tax resident of another jurisdiction, including through permanent establishment (hereinafter group).
(3) The country-by country report may be included in the exchange of information.
(4) The form of a country-by country report and the procedure for submission and performance thereof are established by a regulation of the minister in charge of the policy sector.
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§ 204. Information provider
An information provider for the purposes of this chapter is a reporting entity that is a tax resident in Estonia in compliance with the definition of clause 6 of Subchapter 1 of Annex III to Directive, who may be:
1) an ultimate parent entity that is a tax resident in Estonia, as defined in clause 7 of Subchapter 1 of Annex III to Directive;
2) a surrogate parent entity that is a tax resident in Estonia, as defined in clause 8 of Subchapter 1 of Annex III to Directive or
3) in the case of occurrence of facts specified in clause 1 of Subchapter 2 of Annex III to Directive, other accounting entity that is a tax resident in Estonia, which is not a parent entity of the group..
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§ 205. Obligations of information provider
(1) The reporting entity that is a tax resident in Estonia collects the information necessary for submission of the country-by-county report specified in subsection 1 of § 203 of this Act and submits the country-by-county report to the tax authority by 31 December of the calendar year following the financial year that is a reporting year.
(2) Other reporting entity that is a tax resident in Estonia, who is not the parent entity of the group:
1) requests the ultimate parent entity of the group to communicate all information required for the performance of the reporting obligation provided in subsection 1 of this section;
2) submits the country-by country report also in the case of a failure to obtain all the information required to perform the reporting obligation;
3) notifies the tax authority of the refusal of the ultimate parent entity of the group to communicate any information required for the performance of the reporting obligation.
(3) In case the ultimate parent entity of the group or the surrogate parent entity of the group in accordance with clause 2 of Subchapter 2 of Annex III to Directive submits the country-by-country report on behalf of the group to the tax authority of the residency state or jurisdiction of the group, a member of the group that is a tax resident in Estonia does not have the reporting obligation.
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§ 206. Notification obligation of member of group
(1) In the case of occurrence of the facts specified in clause 1 Subchapter 2 of Annex III to Directive and in the case the group has more than one member that comply with the definition of the reporting entity, the group may notify the tax authority of the appointment of one member of the group to submit the country-by-country report on behalf of the group. Such member of the group must be ensured access within the group to all the information that is required for submission of the country-by-country report.
(2) Each member of the group that is a tax resident in Estonia notifies the tax authority whether it is a reporting entity specified in § 204 of this Act. The obligation provided in this subsection is not an obligation for the purposes of clause 5 of § 2 of this Act.
(3) In case a member of the group that is a tax resident in Estonia is not a reporting entity, it notifies the tax authority of which of the members of the group is a reporting entity and of the tax residency of such entity.
(4) The notification obligation must be performed within six months as of the end of the financial year which is the reporting year of the group.
(5) Upon failure to perform the notification obligation provided in this section the tax authority may require the performance of the obligation provided in subsection 1 of § 205 of this Act from any member of the group that is a tax resident in Estonia.
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§ 207. Obligations of tax authority
(1) The tax authority notifies all the Member States of the European Union of the refusal of the ultimate parent entity of the group to communicate to the reporting entity that is a tax resident in Estonia information that is required for the submission of the country-by country report.
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(2) The tax authority publishes on their webpage the data submitted according to §§ 205 and 206 of this Act in accordance with the procedure provided in subsection 8 of § 27 of the Taxation Act.
[RT I, 02.05.2024, 1 - entry into force 12.05.2024]
Chapter 23 Automatic exchange of information on cross-border arrangements in European Union
[RT I, 21.12.2019, 22 - entry into force 01.01.2020]
§ 208. Cross-border arrangement
(1) For the purposes of this Chapter, a cross-border arrangement is a transaction or chain of transactions involving a Member State of the European Union (hereinafter in this Chapter Member State) or a third country and which may affect taxation, exchange of information on financial accounts or identification of the beneficial owner.
(2) Taxation may be affected by a cross-border arrangement which meets at least one of the following conditions:
1) the persons participating in the arrangement are residents in different states or jurisdictions;
2) at least one of the persons participating in the arrangement is a resident in more than one state or jurisdiction at the same time;
3) at least one of the persons participating in the arrangement operates in a state or jurisdiction in which they are not resident.
(3) The exchange of information on financial accounts may be affected by a cross-border arrangement which disturbs or impedes the collection or exchange of tax information on financial accounts provided in § 41 and Chapters 11 and 2 of this Act.
(4) The identification of the beneficial owner may be affected by a cross-border arrangement which makes it difficult or impossible to identify the beneficial owner as defined in the Money Laundering and Terrorist Financing Prevention Act.
(5) The list of criteria for cross-border arrangements which refer to the risk of avoiding taxation, exchange of information on financial accounts or identification of the beneficial owner is established by a regulation of the minister in charge of the policy sector.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 209. Reportable arrangement
A reportable arrangement is an arrangement covered by exchange of information, which also concerns another Member State or a third country and for which is present at least one of the criteria specified in the regulation of the minister in charge of the policy sector issued on the basis of subsection 5 of § 208 of this Act.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2010. Information provider
(1) For the purposes of this chapter, an information provider is a person who has provided the service of developing, marketing, making available or organizing or managing the implementation of a reportable arrangement.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
(11) For the purposes of this chapter, an information provider is also a person who has personally or through other persons provided assistance, support or advice related to the developing, marketing, making available or organizing or managing the implementation of a reportable arrangement.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
(2) The information provider is not a person for whom it may be presumed that the person did not know and should not have known that the service provided, or the assistance or advice provided upon the provision of service was related to a reportable arrangement.
(3) An information provider who meets at least one of the following conditions is accountable:
1) the information provider is a person resident in Estonia for the purposes of § 6 of the Income Tax Act;
2) the services related to the reportable arrangement are provided through a permanent establishment in Estonia owned by the person;
3) the information provider has been founded in Estonia or its activities are regulated by the Estonian legislation;
4) the information provider is a member of an Estonian professional association which unites persons providing legal or tax advisory service.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2011. Taxable person concerned
For the purposes of this Chapter, the taxable person concerned is a person to whom the reportable arrangement has been made available for implementation or who is ready to implement it or has implemented its first stage.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2012. Related persons
(1) For the purposes of this Chapter, a related party is a person who participates in the management of the other person in a position that provides an opportunity to significantly influence the activities of another person and the person who holds more than 25 per cent of the share capital or stock or of the total number of voting rights of one legal person or at least 25 per cent of the right to receive profit.
(2) Related persons are all persons who are at the same time related to the same person in any manner specified in subsection 1 of this section.
(3) A person who acts jointly with another person upon exercising the rights arising from voting rights or the rights arising from shareholding is also granted the rights of that other person specified above.
(4) The amount of indirect holding is determined by multiplying the size of the holding in the undertaking by the amount of holding in each successive subsidiary. A person who holds more than 50 per cent of the voting rights is considered to be the holder of 100 per cent of the voting rights.
(5) For the purposes of this Chapter, a natural person, their spouse or partner and their direct descendants and ascendants are treated as a single person.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2013. Obligations of information provider
(1) The information provider provides the following information known to them with regard to the reportable arrangement:
1) data enabling identification of the information providers and taxable persons concerned, including the name, in case of a natural person the date and place of birth, residence, personal identification code or registry code and the number of registration as a taxable person, where available;
2) data enabling to identify persons related to the persons specified in clause 1 of this subsection;
3) criteria that convert a cross-border arrangement into a reportable arrangement;
4) name of the arrangement, where available;
5) a summary of the content of the arrangement, including the description of the relevant business activities or transactions, without disclosing any business, industrial or professional secret, marketing process or information the disclosure of which would be contrary to public policy;
6) date of commencement of the implementation of the arrangement;
7) legal details of the arrangement;
8) monetary value of the arrangement;
9) a Member State to which the taxable person concerned is related or which is likely to be affected by the reportable arrangement;
10) another person who is likely to be affected by the reportable arrangement and a Member State to which the person is related;
11) reference number of the arrangement or part of the arrangement upon provision of additional information.
(2) The information provider submits the information specified in subsection 1 of this section to the tax authority within 30 calendar days as of the day following the day on which the reportable arrangement is made available for implementation, the day following the day on which the reportable arrangement is ready for implementation, or the day on which the first action was taken to implement the reportable arrangement, dependent on which day arrives earlier. The information provider specified in subsection 11 of § 2010 of this Act submits the information to the tax authority within 30 days as of the day on which the information provider provided, directly or through other persons, assistance, support or advice relating to the cross-border arrangement.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
(3) Every three months the information provider submits new or additional information specified in clauses 1, 2, 6, 9 and 10 of subsection 1 of this section with regard to such reportable arrangement that has been developed, marketed, ready for implementation or available in a form that does not require significant adjustment for implementation.
(4) The information provider has the right not to provide information with regard to the reportable arrangement in case it would incriminate the information provider, or a person specified in clause 5 of subsection 1 of § 64 of the Taxation Act in the commission of a misdemeanour or a criminal offense.
(5) The tax authority assigns a unique reference number to each arrangement or part of the arrangement submitted for the first time. The information provider communicates the abovementioned reference number to all other persons who have provided service, assistance or advice in relation to the same arrangement or part of the arrangement.
(6) The composition of the data to be submitted regarding a reportable arrangement is established by a regulation of the minister in charge of the policy sector.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2014. Transfer of obligations of information provider
(1) An information provider has the right not to perform the obligations provided in § 2013 of this Act in case performance of the obligations would constitute a violation of the obligation to keep professional secrecy arising from the law.
(2) An information provider notifies another information provider related to the reportable arrangement or, in the absence of such information provider, the taxable person concerned of a failure to perform the obligations provided in § 2013 of this Act.
(3) Upon failure to comply with the obligations provided in § 2013 of this Act, the obligations of the information provider are transferred to the other information provider concerned who has been notified thereof or, in the absence of such information provider, to the taxable person concerned.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2015. Reporting country of information provider
(1) In case the information provider becomes liable for reporting obligation in more than one Member State, one of which is Estonia, and the connection to Estonia comes first on the list below, the information provider submits the information in accordance with § 2013 of this Act to the Tax and Customs Board. The connection between the information provider and the Member State may be the following:
1) the information provider is a resident thereof;
2) the information provider has a permanent establishment there through which it provides services related to the reportable arrangement;
3) the information provider is established there or its activities are subject to the legislation of that state;
4) the information provider is a member of a professional association uniting persons who provide legal or tax advisory services of that state.
(2) In case the information provider becomes liable for reporting in more than one Member State in accordance with subsection 1 of this section, the information provider has the right to disregard the obligations provided in § 2013 of this Act in case the information provider has evidence that the obligations have been performed in another Member State.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2016. Multiplicity of information providers
Where, in accordance with this Chapter, there are more than one reporting information providers with regard to the same reportable arrangement, the information provider has the right to disregard the obligations provided in § 2013 of this Act in case the information provider has evidence that the obligations have been performed by another reporting information provider.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2017. Reporting obligation of taxable person concerned
The information provider provided in this Chapter is the taxable person concerned, where the person who has provided the service related to development, marketing, making available for organization or implementation or management of a reportable arrangement, has no obligation to provide information on such arrangement in any of the Member States or in case there is no such person. The obligation provided in subsection 3 of § 2013 of this Act does not transfer to the taxable person concerned.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2018. Reporting country of taxable person concerned
(1) In case a taxable person is required to report in more than one Member State, one of which is Estonia, and the connection to Estonia is presented first in the list below, the taxable person submits the information in accordance with subsection 1 of § 2013 of this Act to the Tax and Customs Board. The connection of a taxable person to a Member State may be as follows:
1) the taxable person is a resident thereof;
2) the taxable person has a permanent establishment there, which benefits from a reportable arrangement;
3) the taxable person receives income or earns profits there, but is not resident and has no permanent establishment there;
4) the taxable person is active but is not resident and has no permanent establishment there.
(2) In case the taxable person concerned is subject to reporting obligations in more than one Member State in accordance with subsection 1 of this section, the taxable person is entitled to disregard the obligations provided in § 2013 of this Act in case the taxable person has evidence that the obligations have been performed in another Member State.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
§ 2019. Multiplicity of taxable persons concerned
(1) Where there is more than one accountable taxable person concerned in accordance with this Chapter, the information in accordance with subsection 1 of § 2013 of this Act is submitted to the tax authority by the taxable person concerned, who has agreed with the information provider to develop the reportable arrangement or, in the absence of such a person, by such taxable person concerned who manages the implementation of the arrangement.
(2) The taxable person concerned has the right not to perform the obligations provided in § 2013 of this Act in case the taxable person has evidence that the obligations have been performed by another taxable person concerned.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
Chapter 24 Automatic exchange of platform information
[RT I, 29.12.2022, 1 - entry into force 01.01.2023]
Subchapter 1 Terms
[RT I, 29.12.2022, 1 - entry into force 01.01.2023]
§ 2020. Platform
(1) For the purposes of this chapter a platform is software that enables the seller to be in contact with other users to engage in activities covered by the reporting obligation, as well as an arrangement for collection and payment of the fees related to such activities.
(2) A platform is not considered to be the software that only allows users:
1) the processing of payments;
2) the listing or advertising of goods or services;
3) their redirection or transfer to the platform.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2021. Activity covered by reporting obligation
(1) For the purposes of this chapter, an activity covered with the reporting obligation is the following activity performed for a fee:
1) renting or leasing immovable property or part thereof;
2) provision of time- or task-based service;
3) transfer of a thing;
4) leasing or renting out a means of transport.
(2) The fee specified in subsection 1 of this section means any form of the fee that has been paid or credited to the seller relating to the activity covered by the reporting obligation, and from which all service fees, commissions or taxes relating to operating on the platform, withheld or collected by the platform manager, have been deducted, and the amount of which is known to the platform manager or should reasonably be expected to be known.
(3) An activity covered by the reporting obligation is not considered to be such activity provided in subsection 1 of this section which is performed by a seller that is an entity related to the platform manager for the purposes of clause 1 of Division C of Subchapter 1 of Annex 5 of the Directive (hereinafter related entity) or an employee of the platform manager.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2022. Seller
(1) For the purposes of this Act, a seller is a person or legal arrangement that is registered on the platform and is engaged in activities covered by a reporting obligation or to whom a fee is paid or credited relating to this activity.
(2) A seller covered by reporting is a seller who is a resident of a Member State or a seller that leases or rents out immovable property or a part thereof located in a Member State. Also, the seller covered by reporting is a seller who is a resident of a third country or jurisdiction listed on the webpage of the Tax and Customs Board, or a seller who leases or rents out immovable property or a part thereof located in such a country or jurisdiction.
(3) A seller excluded from reporting is:
1) a government entity for the purposes of clause 2 of Division C of Subchapter 1 of Annex 5 to the Directive;
2) a company whose shares are regularly traded on the regulated securities market, as well as an entity related thereto, whose shares are regularly traded on the regulated securities market;
3) a legal person or legal arrangement that has provided, more than 2,000 times in the current calendar year, rental or lease services related to immovables or parts thereof located at the same address and belonging to the same owner;
4) a person or legal arrangement that has concluded less than 30 transactions for the sale of things through the platform in the current calendar year, and the total amount of the fee paid or credited to whom does not exceed 2,000 euros.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2023. Platform manager
(1) For the purposes of this chapter, the platform manager is a legal person or a legal arrangement that enters into a contract with the seller in order to make the platform or a part thereof available to the seller.
(2) For the purposes of this chapter, an information provider is a platform manager that is an Estonian resident. Where the platform manager is not an Estonian resident, they are considered information providers in case their place of management is in Estonia or in case they have a permanent place of business in Estonia or in case they are a legal arrangement established based on the Estonian law.
(3) A platform manager that is not a resident of any Member State, that is not established in accordance with the law of any Member State, that does not have a place of management or a permanent place of business in any Member State, but mediates the activities of the seller provided in the first sentence of subsection 2 of § 2022 of this Act, is also considered an information provider (hereinafter also a non-Union platform manager) and who is registered in Estonia in accordance with subsection 1 of § 2028.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
Subchapter 2 Due diligence measures and provision of data
[RT I, 29.12.2022, 1 - entry into force 01.01.2023]
§ 2024. Implementation of due diligence measures
(1) By applying due diligence measures the platform manager identifies the sellers operating on their platform covered by reporting, by 31 December of the current calendar year.
(2) A legal person or legal arrangement implements due diligence measures for the calendar year of commencing operations as a platform manager by 31 December of the following calendar year.
(3) The platform manager may rely on the due diligence measures for previous calendar years upon implementing due diligence measures, where:
1) the information about the seller has been collected and verified or confirmed within last 36 months and
2) the platform manager has no reason to believe that the information collected about the seller or about the immovable property or a part thereof, leased or rented out by the seller, is unreliable.
(4) The platform manager may implement due diligence measures through a third party, but the responsibility for their compliance lies with the platform manager.
(5) The platform manager is not obliged to collect information or implement other due diligence measures in relation to a seller who has not been engaged in an activity covered by the reporting obligation in the current calendar year nor has received payment related to this activity.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2025. Submission of information about seller covered by reporting and immovable property or part thereof
(1) The information provider submits information about the seller covered by reporting and, in a relevant case, about the immovable property or part thereof leased or rented out by the seller, to the tax authority at the latest on 31 January of the calendar year following the implementation of due diligence measures.
(2) In the case provided in subsection 2 of § 2024 of this Act, the information provider submits the information regarding the calendar year of the commencement of activities as a platform manager to the tax authority at the latest on 31 January of the calendar year after the next calendar year.
(3) The information provider does not have to submit information to the tax authority where:
1) during the implementation of due diligence measures, they have not identified on their platform the sellers covered by reporting, and inform the tax authority thereof at the latest on 31 January;
2) they submit or have submitted information properly to the competent authority of another Member State and inform the tax authority thereof at the latest on 31 January;
3) the same information has already been submitted by another platform manager to the tax authority, the competent authority of another Member State or a non-Union country or jurisdiction, as provided in subsection 1 of § 2030 of this Act, and the information provider has evidence thereof.
(4) A non-Union platform manager who has registered themselves in Estonia in accordance with subsection 1 of § 2028 of this Act cannot rely on the basis provided in clause 2 of subsection 3 of this section.
(5) Before submitting the information to the tax authority, the information provider submits information to the seller covered by reporting to whom it applies.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2026. Due diligence measures and list of information to be submitted
Due diligence measures in accordance with § 2024 of this Act, as well as the list of information to be submitted to the tax authority in accordance with § 2025, are established by a regulation of the minister in charge of the policy sector.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2027. Exemption of platform manager from the obligations provided in this Chapter
(1) In case, due to the business model of the platform, the sellers provided in the first sentence of subsection 2 of § 2022 of this Act cannot operate on it, the tax authority may exempt the platform manager, at their request, from fulfilling the obligations provided in this Chapter regarding the current calendar year in relation to the above-mentioned sellers.
(2) The tax manager informs the competent authorities of other Member States about each platform manager who is exempted in accordance with subsection 1 of this section from fulfilling the obligations provided in this Chapter.
(3) The platform manager is deemed to be exempted from fulfilling the obligations provided in this Chapter with regard to the current calendar year, without a request in accordance with subsection 1 of this section, in case the competent authority of another Member State to which they should have submitted information has already exempted them in an equivalent manner.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
Subchapter 3 Non-Union platform manager
[RT I, 29.12.2022, 1 - entry into force 01.01.2023]
§ 2028. Registration obligation of non-Union platform manager
(1) A non-Union platform manager is required to register themselves immediately with the tax authority, in the case where they establish upon the implementation of due diligence measures that the sellers covered by the reporting provided in the first sentence of subsection 1 of § 2022 of this Act, operate on their platform. A non-Union platform manager cannot apply for registration with the tax authority in the case where they:
1) have already been equivalently registered in another Member State;
2) apply for equivalent registration in another Member State.
(2) The tax manager informs the competent authorities of other Member States about the registration of the non-Union platform manager.
(3) A non-Union platform manager is not registered with the tax authority in the case where their previous registration with the tax authority or the competent authority of another Member State has been declared invalid due to a failure to properly submit platform-related information and the relevant information is still not properly submitted.
(4) The rules for registration of a non-Union platform manager are established by a regulation of the minister in charge of the policy sector.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2029. Repeal of registration of non-Union platform manager
(1) The tax authority declares the registration of a non-Union platform manager invalid in the case where:
1) a non-Union platform manager does not properly fulfil the obligation to submit information to the tax authority despite the repeated reminders by the tax authority;
2) a non-Union platform manager informs the tax authority that they no longer mediate on their platform the sellers covered by reporting;
3) the tax authority has a reason to believe that a non-Union platform manager has terminated their activities as a platform manager or are no longer considered a non-Union platform manager;
4) a non-Union platform manager is exempt from the obligation to register in accordance with subsection 1 of § 2030 of this Act;
5) a non-Union platform manager submits an application for that purpose and the platform-related information has been duly submitted to the tax authority for the calendar years prior to the submission of the application.
(2) In the case specified in clause 1 of subsection 1 of this section, the registration is declared invalid at the latest 90 days after the expiry of the due date for submitting the information, but not before 30 days have passed as of the last reminder.
(3) In the case specified in clause 5 of subsection 1 of this section, the platform manager must add to the application the existing platform-related information to be submitted for the current calendar year based on this Act.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 2030. Exemption of non-Union platform manager from obligation to register and submit information
(1) The non-Union platform manager is not required to submit information about the seller covered by reporting with regard to whom the automatic exchange of equivalent information with the Member State has already been prescribed by the country or jurisdiction where the non-Union platform manager is resident or where they are established or where their place of management is located and in the case of this seller, upon self-registration.
(2) The European Commission confirms the equivalence of information based on and according to the rules provided in the directive, by an implementing regulation.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
Chapter 3 Supervision
§ 21. Supervisory authority
The tax authority exercises supervision over the compliance with this Act and the legislation issued on the basis thereof in accordance with the procedure provided in the Taxation Act.
§ 22. Non-compliance levy
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]
(1) In the case of a failure to perform the obligations of the information provider arising from this Act, the tax authority may set an additional term for the performance of obligations and issue a warning of imposing non-compliance levy in accordance with § 136 of the Taxation Act.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
(2) The non-compliance levy specified in the warning must be paid in the case of a failure of the information provider or, in the case provided by law, of a taxable person concerned to perform the obligations by the due date specified in the warning. The tax authority submits a claim for payment of non-compliance levy to the obligated person by an order, determines the term of payment and issues a warning that in case of a failure to pay non-compliance levy within the time limit, the claim is subject to compulsory execution in accordance with §§ 128-132 of the Taxation Act.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
(3) In order to enforce the performance of the obligations the amount of non-compliance levy may not exceed 3,300 euros, whereas it may not exceed 1,300 euros in the first event and 2,000 euros in the second event.
(4) The provisions of this section are applied also to a member of the group that is a tax resident in Estonia upon a failure to perform the notification obligation provided in § 206.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]
§ 221. Display of warning and restriction of access upon access to platform due to failure to submit information
(1) The tax authority may, by a precept, require the information society service provider to display a warning to users upon access to the platform where the information provider has failed to submit information within the additional term set by the tax authority.
(2) The tax authority may require the provider of publicly available electronic communications service providing internet service to restrict access to the platform and block the domain name specified in the precept in the name servers belonging thereto, where there are no other effective opportunities to eliminate the violation.
(3) The provisions of subsections 1 and 2 of this section also apply to a non-Union platform manager who has not complied with the registration obligation in accordance with subsection 1 of § 2028 of this Act or has failed to register for the reason provided in subsection 3 of the same section.
(4) The tax authority has the right to issue a precept specified in subsection 2 of this section, where they have obligated the information provider, based on a warning of blocking, to submit information within an additional term, which must be at least 90 days.
(5) The tax authority informs the information society service provider of the lapse of the reason for the display of the warning, and the publicly available electronic communication service provider of the lapse of the reason for the display of blocking, after which the warning or blocking is removed on the working day following the notification.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
Chapter 4 Implementing Provisions
§ 23. Notification of information processing and collection of identification numbers of reporting persons
(1) The information provider informs, in a form reproducible in writing, all the customers with whom a business relationship for the purposes of the Money Laundering and Terrorist Financing Prevention Act was created before the entry into force of this Act, of the collection, exchange and automatic communication of information in accordance with this Act at the latest on 30 March 2015. The provisions of the first sentence of this subsection are not applied to the information provider who has no obligation to submit information for the exchange of information to the tax authority based on Chapter 2 of this Act.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]
(11) The information provider not specified in subsection 1 of this section, who has created business relationship with customers for the purposes of the Money Laundering and Terrorist Financing Prevention Act during the time when subsection 2 of § 6 of this Act had not been applied thereto, notifies such customers in a form reproducible in writing of the collection, exchange and automatic communication of information on the basis of this Act within three calendar months as of the time when subsection 2 of § 6 of this Act was applied to the information provider.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]
(2) In order to enforce compliance with the obligation provided in clause 1 of subsection 1 of § 16 of this Act, the reporting Estonian financial institution notifies, at the latest on 30 June 2016, the account holder who, as result of the taking of due diligence measures, has been identified or the controlling person of whom has been identified as a US person whose Taxpayer Identification Number of the United States of America is not known, of the deficiency of the customer data established. The specified account holder submits the Taxpayer Identification Number of the United States of America to the reporting Estonian financial institution at the latest on 31 December 2016.
§ 231. Implementation of Chapter 11 of this Act
(1) A reporting Estonian financial institution applies the reporting and due diligence measures specified in Chapter 11 of this Act and collects information concerning financial accounts opened in 2016 for the first time by 31 December 2016.
(2) A reporting Estonian financial institution applies reporting and due diligence measures and collects information on existing financial accounts for the first time as follows:
1) on the existing high value financial accounts of a natural person in accordance with the conditions provided in clause 15 of Division C of Subchapter 8 of Annex 1 of the Directive by 31 December 2016;
2) on the existing lower value financial accounts of a natural person in accordance with the conditions provided in clause 14 of Division C of Subchapter 8 of Annex 1 of the Directive by 31 December 2017;
3) on the existing financial accounts of a company in accordance with the conditions provided in clause 1 of Division E of subsection 5 of Annex 1 of the Directive by 31 December 2017.
(3) Upon application of reporting and due diligence measures provided in Annexes 1 and 2 to the Directive the reporting Estonian financial institutions may:
1) apply due diligence measures prescribed for new financial accounts to all pre-existing financial accounts, as well as the due diligence measures prescribed for high value financial accounts to all lower value financial accounts;
2) rely on the current address of the place of residence of an account holder of lower value financial account, who is a natural person, upon identification of their tax residency in case the reporting Estonian financial institution has no grounds to doubt the accuracy of the data;
3) apply due diligence measures with regard to the pre-existing financial accounts of a company and submit information about them after the total balance or value of the financial accounts exceeds the maximum rate specified in clause 1 of Division E of Subchapter 5 of Annex 1 of the Directive;
4) consider as pre-existing such financial account which is opened at any time in the same financial institution by the account holder of the pre-existing account and which is treated by the financial institution as one financial account together with other financial accounts of such a person, to which due diligence measures applicable on the basis of the Money Laundering and Terrorist Financing Prevention Act are extended and upon opening of which the account holder is required to submit only information specified in the Directive;
5) collect information concerning gross proceeds from the sale or redemption of financial assets for the first time by one year later than the term provided in this section.
(4) Upon identification of the financial account for the purposes of subsection 3 of this section a reporting Estonian financial institution applies rules related to account balance aggregation and currency rules provided in Division C of Subchapter 7 of Annex 1 of the Directive. The negative account balance aggregation or value received as a result of applying the specified rules are deemed as a zero value.
(5) The specifications provided in subsection 3 of this section are uniformly applied to all financial accounts kept by a reporting Estonian financial institution.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]
(6) With regard to an insurance contract which is not precluded from the exchange of information provided in clause 2 of subsection 5 of § 81 of this Act, a reporting Estonian financial institution applies the reporting and due diligence measures specified in Chapter 11 of this Act and collects information for the first time by 31 December 2020.
[RT I, 07.12.2018, 1 – entry into force 17.12.2018]
§ 232. Implementation of Chapter 2 of this Act
(1) A reporting Estonian financial institution has the right specified in clause 4 of subsection 3 of § 231 of this Act also upon performance of the obligations based on Chapter 2 of this Act in accordance with the FATCA agreement.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]
(2) The provisions of subsection 5 of § 81 and subsection 6 of § 231 of this Act are also applied upon the performance of obligations arising from Chapter 2 of this Act.
[RT I, 07.12.2018, 1 – entry into force 17.12.2018]
§ 233. Implementation of Chapter 21 of this Act
(1) The tax authority may communicate information to a competent authority of a Member State of the European Union and the European Commission concerning such preliminary rulings which have been issued since 1 January 2012.
(2) The preliminary ruling issued during the period from 1 January 2012 to 31 December of 2013 is included in the automatic exchange of information in case it is valid as at 1 January 2017.
(3) The tax authority communicates the data concerning the preliminary rulings specified in subsection 1 of this section, which have been issued before 1 January 2017, to each Member State of the European Union and the European Commission by 31 December of 2017.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]
§ 234. Implementation of Chapter 22 of this Act
(1) The provisions of Chapter 22 of this Act are applied to data concerning such financial year that begins on 1 January 2016 or at a later date.
(2) A reporting entity that is not a parent entity of the group submits the country-by country report for the first time for the financial year that begins on 1 January 2017 or at a later date.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]
(3) Subsection 2 of § 207 of this Act is applied to the data relating to the financial year that begins on 22 July of 2024 or at a later date.
[RT I, 02.05.2024, 1 - entry into force 12.05.2024]
§ 235. Implementation of Chapter 23 of this Act
(1) The provisions of Chapter 23 of this Act are applied to such reportable arrangements which are made available for implementation, which are ready for implementation or for the implementation of which the first act is made on 1 January 2021 or on a date later thereof.
[RT I, 24.11.2020, 2 – entry into force 04.12.2020, applied retroactively as of 30.06.2020]
(2) The information provider submits information specified in subsection 1 of § 2013 of this Act for the first time by 28 February 2021 for such reportable arrangements the implementation of which was commenced within the period of 25 June 2018 until 30 June 2020.
[RT I, 24.11.2020, 2 – entry into force 04.12.2020, applied retroactively as of 30.06.2020]
(3) In the case of such reportable arrangements which were ready for implementation or the implementation of which was commenced within the period of 1 July until 31 December 2020, the term for submission of information provided in subsection 2 of § 2013 of this Act begins to run from 1 January 2021. In the case of arrangements specified in subsection 3 of § 2013 of this Act the information provider submits new or additional information for the first time by 30 April 2021.
[RT I, 24.11.2020, 2 – entry into force 04.12.2020, applied retroactively as of 30.06.2020]
§ 236. Implementation of Chapter 24 of this Act
The platform manager applies due diligence measures specified in Chapter 24 of this Act to the sellers that are registered on the platform as at 1 January 2023, at the latest by 31 December 2024, and submits information for 2023 about them and, in relevant cases, information about immovable property or part thereof leased by them at the latest by 31 January 2025.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
§ 24. – § 28. [Omitted from this translation.]
§ 29. Entry into force
This Act enters into force on 1 January 2015.
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