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Tax Information Exchange Act

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Tax Information Exchange Act - content
Issuer:Riigikogu
Type:act
In force from:01.01.2023
In force until: In force
Translation published:17.01.2023

Tax Information Exchange Act1

Passed 18.12.2014
RT I, 23.12.2014, 15
Entry into force 01.01.2015

Amended by the following legal instruments (show)

PassedPublishedEntry into force
27.01.2016RT I, 09.02.2016, 110.02.2016
15.03.2017RT I, 31.03.2017, 101.04.2017
07.06.2017RT I, 26.06.2017, 106.07.2017
21.11.2018RT I, 07.12.2018, 117.12.2018
20.02.2019RT I, 13.03.2019, 215.03.2019
18.12.2019RT I, 21.12.2019, 2201.01.2020
12.11.2020RT I, 24.11.2020, 204.12.2020, the Act is applied retroactively as of 30.06.2020.
14.12.2022RT I, 29.12.2022, 101.01.2023

Chapter 1 General Provisions  

§ 1.  Scope of application of Act

 (1) This Act provides for 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) If the regulation of this Act is different from the provisions of a treaty, the provisions of the treaty apply.

§ 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 formation 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 without the status of a person or a pool of assets;
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
 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 pursuant to a treaty 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 concerning direct taxes, on the basis of a treaty or under the relevant legislation of the European Union, from the tax authority to a competent authority of a foreign state and vice versa;
 8) the automatic communication of information is the communication of information on a regular basis, without request, in a predetermined 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 of information, necessary for the exchange of information, from the information provider by the tax authority.

§ 3.  Collection of information

 (1) The Taxation Act shall be 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 declarations provided for in the Taxation Act shall apply to the declarations established on the basis of 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 shall have 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 a treaty 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 amount of insurance and insurance benefits paid under the life insurance contract;
 4) pension paid;
 5) income from immovable property;
 6) licence fee.
[RT I, 29.12.2022, 1- entry into force 01.01.2023]

 (4) The tax authority may enter into inter-agency treaty with a competent authority of a foreign state to specify the functioning of the exchange of information.

§ 41.  Non-European Union exchange of financial accounts and country-by-country report information

  [RT I, 31.03.2017, 1 – entry into force 01.04.2017]

 (1) The provisions of Chapters 1, 11 and 3 of this Act shall be applied also to the automatic exchange of financial accounts information in tax matters on the basis of Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter Convention).
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

 (11) The provisions of Chapters 1, 22 and 3 of this Act shall be applied also to the automatic exchange of country-by-country report information pursuant to a treaty and on the basis of Article 6 of the Convention.
[RT I, 07.12.2018, 1 – entry into force 17.12.2018]

 (12) The provisions of Chapter 24of this Act are also applied to the automatic exchange of platform-related information in accordance with treaties and based on Article 6 of the Convention.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]

 (2) The tax authority has the notification and supervision obligation related to the exchange of financial accounts information in tax matters on the basis of Article 6 of the Convention.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 5.  Restriction on use of information

 (1) Information obtained by means of the collection of information and exchange of information shall be regarded as a tax secret for the purposes of the Taxation Act.

 (2) Information obtained under a treaty may be disclosed by the tax authority under the conditions provided for in §§ 26-30 of the Taxation Act, taking into account the provisions of the treaty.

 (3) Information obtained pursuant to the relevant legislation of the European Union may be disclosed by the tax authority under the conditions provided for 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 in the course of the automatic exchange of country-by-country report information as the sole or main basis for transfer pricing adjustments specified in subsection 2 of § 8 of the Income Tax Act.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

 (2) Upon establishment of business relations the information provider shall notify the customer in a format which can be reproduced in writing of the collection, exchange and automatic communication of information carried out on the basis of this Act for the purposes of the Money Laundering and Terrorist Financing Prevention Act. The provisions of the first sentence of this subsection shall not be applied to an information provider who has no obligation to submit the information collected for exchange of information to the tax authority.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

 (3) In addition to the obligations provided for in the Personal Data Protection Act, the tax authority shall, at the request of the data subject, submit 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.
[RT I, 13.03.2019, 2 – entry into force 15.03.2019]

 (4) If the data subject proves that information for the current year and five previous calendar years communicated to the tax authority in the course of the collection of information is incorrect due to the information provider, the information provider shall submit the corrected information to the tax authority at the earliest opportunity.

 (5) The tax authority shall communicate the information corrected pursuant to subsection 4 of this section to the competent authority of a foreign state and requests deletion of the information previously communicated.

 (6) If 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 in the period that the data concern, the tax authority shall request the competent authority of a foreign state to delete the corresponding information.

§ 7.  Incurring costs

  The tax authority and information provider shall bear their own costs relating to the compliance with this Act.

§ 71.  Transactions and acts performed in order to avoid collection of information

  If it follows from the content of a transaction or act that it has been performed in order to avoid collection of information, it shall not be taken into account upon application of this Act.
[RT I, 07.12.2018, 1 – entry into force 17.12.2018]

§ 8.  Compliance with obligations of collection and exchange of information

 (1) Upon receipt of the request the information source shall provide the information provider with the data in the absence of which the information provider shall not be able to comply with this Act. The data shall be submitted within 30 calendar days unless a shorter term is prescribed pursuant to this Act.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

 (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 transfer the payment to the seller until the seller provides the required information. These measures are allowed to be implemented after the second reminder is presented, but not before 60 days have passed since the initial request for information.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]

 (2) The information source shall ensure 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 for at least the current year and six previous calendar years, but not for more than ten years, taking into account the purposefulness principle 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).
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]

 (4) If 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 shall submit the revised information to the tax authority at the earliest opportunity.

Chapter 11 Automatic exchange of financial accounts information in tax matters in European Union  
[RT I, 09.02.2016, 1 - entry into force 10.02.2016]

§ 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 for in Section 8 C 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 on the basis of § 61 or 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-reporting financial institution.
[RT I, 26.06.2017, 1 – entry into force 06.07.2017]

 (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.
[RT I, 26.06.2017, 1 – entry into force 06.07.2017]

 (4) A financial account precluded from the exchange of information for the purposes of this Chapter is an account complying with Section 8 C(17) of Annex 1 of the Directive to which the reporting and due diligence measures shall not be applied.

 (5) A financial account other than specified in the Directive precluded from the exchange of information complying with Section 8 C(17) (g) of Annex 1 of the Directive is:
 1) a pension contract for the purposes of subsection 1 of § 41 of the Funded Pensions Act;
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
 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.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 82.  Financial accounts information in tax matters

 (1) For the purposes of this Chapter financial accounts information in tax matters is the information specified in Article 8 (3a) 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 financial accounts information in tax matters provided for in Annexes 1 and 2 of the Directive.

 (3) The exchange of information may include financial accounts information in tax matters.

 (4) The type of income included in the financial accounts information in tax matters shall be determined and the type, balance or value of an account of the specified income shall be calculated in euros, taking account of the provisions of the Income Tax Act.

 (5) The forms of the declarations of the financial accounts information in tax matters and the procedure for submission and fulfilling the declarations shall be established by a regulation of the minister in charge of the policy sector.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 83.  Information provider

 (1) For the purposes of this Chapter the information provider 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 for in Section 8 A 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 for in Section 8B of Annex 1 of the Directive, which is released 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 for in Section 8 B (1) (c) of Annex 1 of the Directive.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 84.  Controlling person

  Identification of the controlling person of a company for the purposes of this Chapter is based on the determination of the beneficial owner in the Money Laundering and Terrorist Financing Prevention Act.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 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 format which can be reproduced 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.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 86.  Obligations of information provider

 (1) The information provider shall refrain from any action aimed at circumventing the collection of financial accounts information in tax matters.

 (2) A reporting Estonian financial institution shall apply the reporting and due diligence measures specified in subsection 2 of § 82 of this Act and shall identify annually the information in tax matters of the 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 shall be collected regardless of whether tax information is involved in the exchange of information.

 (3) A reporting Estonian financial institution shall submit to the tax authority the financial accounts information in tax matters, established pursuant to subsection 2 of this section for the previous calendar year, by electronic declaration by 30 June annually.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 87.  Compliance with obligations through third party

  A reporting Estonian financial institution may perform the obligations provided for in this Chapter through a third party. The reporting Estonian financial institution shall have liability for the compliance with the obligations.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

§ 88.  Obligations of tax authority

 (1) The tax authority shall have the notification and supervision obligation provided for in Article 8(7a) of the Directive.

 (2) The financial accounts information in tax matters communicated to the tax authority, which is not included in the exchange of information, shall be deleted by the tax authority.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

Chapter 2 Compliance with FATCA Agreement  

§ 9.  Application of FATCA Agreement

  Implementation of the FATCA Agreement is primarily based 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 Article 1 (1) (g) 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) investment firm and the Estonian branch of a foreign investment firm;
 4) the 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) Estonian Central Securities Depository.
[RT I, 26.06.2017, 1 – entry into force 06.07.2017]

 (3) The financial accounts kept by the Estonian 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.
[RT I, 26.06.2017, 1 – entry into force 06.07.2017]

 (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.
[RT I, 26.06.2017, 1 – entry into force 06.07.2017]

§ 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 Article 1 (1) (f) (2) of the FATCA Agreement.

 (2) The controlling person for the purposes of Article 1 (1) (mm) 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 format which can be reproduced 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 numbers or numbers of the taxable person;
 5) the date of birth;
 6) the place of birth to the accuracy of the state or;
 7) the time of submitting the confirmation.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

 (4) The account holder may submit confirmation on behalf of the natural person who is controlling the company.
[RT I, 09.02.2016, 1 – entry into force 10.02.2016]

 (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 for in this Chapter, including the obligation to submit the declaration, through a third party to the extent specified in Annex I (VI) (F) of the FATCA Agreement. The responsibility related to the compliance with the obligations relies on the reporting Estonian financial institution.

§ 13.  Specifications of application of FATCA Agreement

 (1) An Estonian financial institution does not have the right specified in Article 4 (7) of the FATCA Agreement.

 (2) The entity accounts opened during the period of 1 July to 31 December 2014 may be considered as the pre-existing entity accounts by an Estonian financial institution. Upon treating these accounts as the pre-existing entity accounts the possibility of the postponement of taking due diligence measures provided for in Annex I (VI) (A) of the FATCA Agreement shall not be applied to these accounts.

§ 14.  Specifications for application of due diligence measures

 (1) Upon taking due diligence measures Annex I of the FATCA Agreement is not applied as provided in:
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]
 1) Part I, point C;
 2) Part II, point A, subparagraph 3;
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]
 3) [Repealed – RT I, 21.12.2019, 22 – entry into force 01.01.2020]
 4) Part V, point A

 (2) The reporting Estonian financial institution may apply the specifications provided for in Annex I (II) (A) (1), (2) and (4) and Annex I (IV) (A) of the FATCA Agreement upon taking due diligence measures. The specifications shall be applied in a uniform manner to all the financial accounts of a reporting Estonian financial institution.
[RT I, 21.12.2019, 22 – entry into force 01.01.2020]

§ 15.  General obligations of Estonian financial institutions

 (1) An Estonian financial institution shall refrain from any action aimed at circumventing the collection of information related to the FATCA Agreement.

 (2) If an Estonian financial institution has an affiliated entity or branch corresponding to the conditions specified in Article 4 (5) of the FATCA Agreement, the Estonian financial institution shall comply with the conditions provided for in Article 4 (5) (a) through (c) of the FATCA Agreement.

§ 16.  Data collection obligation of reporting Estonian financial institution

 (1) A reporting Estonian financial institution collects:
 1) data specified in Article 2 (2) (a) of the FATCA Agreement for 2014 and subsequent years under the conditions specified in the same point with the specifications given in Article 3 (3) (a), Article 3 (4), Article 6 (4) and Annex II of the FATCA Agreement.
 2) the data of payments made to the non-participating financial institutions in 2015 and 2016.

 (2) Upon the collection of data provided for in subsection 1 of this section the reporting Estonian financial institution shall apply 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 sums included in the data specified in clause 1 of subsection 1 of this section shall be determined, taking into account the provisions of the Income Tax Act.

 (4) The type and amount of the sums included in the data specified in clause 2 of subsection 1 of this section shall be determined in euros, taking into account the provisions of subsection 5 of § 36 of the Income Tax Act.

 (5) The data for the previous calendar year specified in subsection 1 of this section shall be collected by 30 June at the latest.

§ 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 shall comply with the FATCA Agreement Article 4 (1):
 1) registration requirements specified in point c;
 2) requirements specified in point d if it meets the requirements for the Estonian financial institutions set out in the same point;
 3) requirements specified in point e if it meets the requirements for the Estonian financial institutions set out in the same paragraph.

 (2) A reporting Estonian financial institution shall immediately register with the State Revenue Service of the United States of America

§ 18.  Collection and exchange of information

 (1) A reporting Estonian financial institution shall submit a declaration to the tax authority electronically pursuant to subsection 1 of § 16 of this Act:
 1) with the data collected for the calendar year by 30 June of the following year pursuant to clause 1;
 2) with the data collected pursuant to clause 2 by 30 June 2016 and 30 June 2017 respectively.

 (2) The tax authority shall communicate the information received on the basis of subsection (1) of this section to a competent authority of the United States of America electronically no later than 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 of them shall be established by a minister in charge of the policy sector.

§ 19.  Rights and obligations of tax authority

 (1) The tax authority shall perform 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 specifications provided for in this Act.

 (2) The tax authority shall immediately take measures to eliminate a violation specified in Article 5 of the FATCA Agreement committed by Estonia or an Estonian financial institution and approach a competent authority of the United States of America if 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 shall have the right to conclude agreements with the United States of America for amendment of Appendix II of the FATCA Agreement under the terms and pursuant to the procedure provided for therein.

§ 20.  Application of more favourable conditions

  The minister in charge of the policy sector shall approve of the application of more favourable conditions specified in Article 7 (2) of FATCA Agreement or refuse to approve thereof and shall notify the Treasury Department of the United States of America thereof.

Chapter 21 Automatic exchange of information on preliminary decisions in European Union  
[RT I, 31.03.2017, 1 - entry into force 01.04.2017]

§ 201.  Object of exchange of information

 (1) The automatic exchange of information on preliminary decisions may include data concerning such binding preliminary decision 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 creation of permanent establishment in a foreign state or another jurisdiction (hereinafter preliminary decision).

 (2) For the purposes of subsection 1 of this section such operation or set of operations shall be 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 preliminary decision that deals only with the taxation of operations between natural persons.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

§ 202.  Information communicated with regard to preliminary decision

 (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 decision:
 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 of maintaining business secrecy;
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]
 3) date of issue of the preliminary decision;
 4) date of beginning and end of the potential duration of validity of the preliminary decision;
 5) type of the preliminary decision;
 6) monetary value of the relevant act or set of acts if it is referred to in the preliminary decision or agreement;
 7) reference to another Member State of the European Union whom the preliminary decision is likely to affect;
 8) reference to a person, located or operating in another Member State of the European Union, who is likely to be affected by the preliminary decision.

 (2) Information is not automatically exchanged with regard to the natural persons related to the acts dealt with in the preliminary decision.

 (3) The tax authority may communicate information on the preliminary decision noted in clauses 3–7 of subsection 1 of this section to the European Commission.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

Chapter 22 Exchange of country-by-country information in European Union  
[RT I, 31.03.2017, 1 - entry into force 01.04.2017]

§ 203.  Country-by-country report

 (1) For the purposes of this Act the country-by country report shall be such report concerning multinational enterprise groups which includes:
 1) aggregate information on multinational enterprise groups relating to the amount of revenue, profit or loss before income tax, income tax paid and income tax accrued, stated share capital, accumulated earnings, number of employees and tangible assets other than cash or cash equivalents with regard to each such state and jurisdiction in which the multinational enterprise group operates, and;
 2) information enabling identification of the members of the multinational enterprise group, including information concerning the state or jurisdiction of tax residency of the member of the group or under the legislation of which it is formed if it is different from the jurisdiction of tax residency, and information on the main business activities of the members of the group.

 (2) A multinational enterprise group specified in subsection 1 of this section shall be a group defined in point (3) of Section 1 of Annex III to Directive, of which at least one member is a tax resident of other jurisdiction, including through permanent establishment (hereinafter group)..

 (3) The country-by country report may be included in the exchange of information.

 (4) The format of a country-by country report and the procedure for submission and performance thereof shall be established by a regulation of the minister in charge of the policy sector.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

§ 204.  Information provider

  The information provider for the purposes of this chapter is a reporting entity that is a tax resident of Estonia in compliance with the definition of point (6) of Section 1 of Annex III to Directive, who may be:
 1) an ultimate parent entity that is a tax resident of Estonia, as defined in point (7) of Section 1 of Annex III to Directive;
 2) a surrogate parent entity that is a tax resident of Estonia, as defined in point (8) of Section 1 of Annex III to Directive or
 3) in the case of occurrence of facts specified in point (1) of Section 1 of Annex III to Directive other accounting entity that is a tax resident of Estonia who is not a parent entity of the group..
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

§ 205.  Obligations of information provider

 (1) The reporting entity that is a tax resident of Estonia shall collect the information necessary for submission of the country-by-county report specified in subsection 1 of § 203 of this Act and submit 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 of Estonia, who is not the parent entity of the group:
 1) shall request the ultimate parent entity of the group communication of all information required for the performance of the reporting obligation provided for in subsection 1 of this section;
 2) shall submit the country-by country report also in the case of a failure to obtain all the information required to perform the reporting obligation;
 3) shall notify 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) If the ultimate parent entity of the group or the surrogate parent entity of the group pursuant to point (2) of Section 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 of Estonia shall not have the reporting obligation.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

§ 206.  Notification obligation of member of group

 (1) In the case of occurrence of the facts specified in point (1) of Section 2 of Annex III to Directive and in the case the group has more than one member that complies 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 county-by-country report on behalf of the group. Such member of the group shall 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 of Estonia shall notify the tax authority whether it is a reporting entity specified in § 204 of this Act. The obligation provided for in this subsection shall not be an obligation for the purposes of clause 5 of § 2 of this Act.

 (3) If a member of the group that is a tax resident of 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 shall be performed within six months as of the end of the financial year that is the reporting year of the group.

 (5) Upon failure to perform the notification obligation provided for in this section the tax authority may require the performance of the obligation provided for in subsection 1 of § 205 of this Act from any member of the group that is a tax resident of Estonia.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

§ 207.  Obligations of tax authority

  The tax authority shall notify 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 of Estonia information that is required for the submission of the country-by country report.
[RT I, 31.03.2017, 1 – entry into force 01.04.2017]

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 he is 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 of financial accounts provided for 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 shall be 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 in connection with 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) A person who can be presumed not to have known or should not have known that the service provided or the assistance or advice provided upon the provision of the service was related to a reportable arrangement is not a information provider.

 (3) A reporting information provider is an information provider who meets at least one of the following conditions:
 1) the person is a resident in Estonia within the meaning 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 person is founded in Estonia or its activities are regulated by the Estonian legislation;
 4) the person is a member of an Estonian professional association which unites persons providing legal or tax advisory services.
[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 shall be a person to whom the reportable arrangement has been is 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 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 at the same time are 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 shall also be granted the rights specified above of that other person.

 (4) The amount of indirect holding shall be 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 shall be considered to be the owner of 100 per cent of the voting rights.

 (5) For the purposes of this Chapter, a natural person, his or her spouse or partner and his or her direct descendants and ascendants shall be 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 shall provide 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 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 make 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 a description of the relevant business activities or transactions, without disclosing any business, industrial or professional secret, any marketing process or information the disclosure of which would be contrary to public policy;
 6) date of commencement 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 linked 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 linked;
 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 made to implement the reportable arrangement, dependent on which day arrives earlier. The information provider referred to 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 in connection with the cross-border arrangement.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]

 (3) Every three months the information provider shall submit 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) An information provider shall have the right not to provide information with regard to the reportable arrangement if it accused the information provider or a person specified in clause 5 of subsection 1 of § 64 of the Taxation Act of committing a misdemeanor or a criminal offense.

 (5) The tax authority shall assign a unique reference number to each arrangement or part of the arrangement submitted for the first time. The information provider shall notify all other persons who have provided services, assistance or advice in connection with the same arrangement or part of the arrangement of the above reference number

 (6) The composition of the data to be submitted with regard to a reportable arrangement shall be 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 shall have the right not to perform the obligations provided for in § 2013 of this Act if performance of the obligations would constitute a violation of the obligation to keep professional secrecy arising from the law.

 (2) An information provider shall notify 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 for in § 2013 of this Act.

 (3) Upon failure to comply with the obligations provided for in § 2013 of this Act, the obligations of the information provider shall be 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) If the information provider becomes liable for reporting obligation in more than one Member State, one of which is Estonia, and the connection with Estonia is first on the list below, the information provider shall submit the information pursuant to § 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 scheme;
 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 of that state, which unites persons who provide legal or tax advisory services.

 (2) If the information provider becomes liable for reporting in more than one Member State pursuant to subsection 1 of this section, the information provider shall have the right to disregard the obligations provided for in § 2013 of this Act if 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, pursuant to this Chapter, there is more than one reporting information provider regarding the same reportable arrangement, the information provider shall have the right to disregard the obligations provided for in § 2013 of this Act if 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 for in this Chapter shall be the taxable person concerned, where the person who has provided the service related to development, marketing, making available for organization of its implementation or management of a reportable arrangement, has no obligation to provide information on such arrangement in any of the Member States or if there is no such person. The obligation provided for in subsection 3 of § 2013 of this Act shall 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

 (1) If a taxable person is required to report in more than one Member State, one of which is Estonia, and the connection with Estonia appears first in the list below, the taxable person shall submit the information pursuant to subsection 1 of § 2013 of this Act to the Tax and Customs Board. The connection of a taxable person with 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 there and has no permanent establishment there;
 4) the taxable person is active there but is not resident there and has no permanent establishment there.

 (2) If the taxable person concerned is subject to reporting obligations in more than one Member State pursuant to subsection 1 of this section, the taxable person shall be entitled to disregard the obligations provided for in § 2013 of this Act if 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 pursuant to this Chapter, the information pursuant to subsection 1 of § 2013 of this Act shall be 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 person, by such taxable person concerned who manages the implementation of the arrangement.

 (2) The taxable person concerned shall have the right not to perform the obligations provided for in § 2013 of this Act if he 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) As a platform is not considered the software that only allows users:
 1) payment processing;
 2) listing or advertising 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 by 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 related to the activity covered by the reporting obligation, and from which all service fees, commissions or taxes related 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 within the meaning of clause 1 of section C 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 related 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 non-European Union country or jurisdiction listed on the web page 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 informants where their place of management is in Estonia, or where they have a permanent place of business in Estonia, or where they are a legal arrangement established on the basis of the Estonian law.

 (3) A platform manager that is not a resident of any Member State, that is not established pursuant to 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 that 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 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 covered by reporting, operating on their platform, 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 no later than 31 January of the year over 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 over the following 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 on 31 January at the latest;
 2) they submit or have submitted information properly to the competent authority of another Member State and inform the tax authority thereof on 31 January at the latest;
 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) The information provider submits information to the seller covered by reporting, to which it applies, before submitting the information to the tax authority.
[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 pursuant to § 2024 of this Act, as well as the list of information to be submitted to the tax authority pursuant to § 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) Where, 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 in relation to the above-mentioned sellers for the current calendar year.

 (2) The tax manager informs the competent authorities of other Member States about each platform manager who is exempted from fulfilling the obligations provided in this Chapter in accordance with subsection 1 of this section.

 (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 pursuant to subsection 1 of this section, where 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 during 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 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 fulfill 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 this purpose, and the platform-related information for the previous calendar years prior to the submission of the application has been duly submitted to the tax authority.

 (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 5 of this section, the platform manager must add to the application the existing platform-related information for the current calendar year to be submitted based on this Act.
[RT I, 29.12.2022, 1 – entry into force 01.01.2023]

§ 2030.  Exemption of the 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, for which the automatic exchange of equivalent information with the Member State is already provided by the country or jurisdiction where the non-Union platform manager is resident, or where it is established, or where its place of management is located, or in the case of this seller, upon self-registration.

 (2) The European Commission confirms the equivalence of information, on the basis 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 shall exercise supervision over the compliance with this Act and the legislation issued on the basis thereof pursuant to the procedure provided for 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 pursuant to § 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 is required to be paid in the case of a failure of the information provider or, in the case provided for by law, by a taxable person concerned to perform the obligations by the due date specified in the warning. The tax authority shall submit a claim for payment of non-compliance levy to the obligated person by an order, shall determine the term of payment and issue a warning that in case of a failure to pay the non-compliance levy within the time limit, the claim shall be subject to compulsory execution pursuant to §§ 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 for the first event and 2,000 euros in the second event.

 (4) The provisions of this section shall be applied also to a member of the group that is a tax resident of Estonia upon a failure to perform the notification obligation provided for 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 an administrative decision, require the information society service provider to display a warning to users upon access to the platform in the case where the information provider has failed to submit information within the additional term set by the tax authority.

 (2) The tax authority may require that the provider of publicly available electronic communications service providing internet services restricts access to the platform and blocks the domain name specified in the administrative decision 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 pursuant to subsection 1 of § 2028 of this Act or is not registered for the reason provided in subsection 3 of the same section.

 (4) The tax authority has the right to issue an administrative decision specified in subsection 2 of this section, where they have obligated the information provider, based on a blocking warning, to submit information during an additional term, which must be at least 90 days.

 (5) The tax authority informs the information society service provider of the cancellation of the reason for the display of the warning, and the publicly available electronic communication service provider of the cancellation 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 shall inform in a format which can be reproduced in writing all 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 pursuant to this Act at the latest on 30 March 2015. The provisions of the first sentence of this subsection shall not be applied to the information provider who has no obligation to submit information for the exchange of information to the tax authority on the basis of 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, shall notify such customers in a format which can be reproduced 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 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 for in clause 1 of subsection 1 of § 16 of this Act, the reporting Estonian financial institution shall notify the account holder, who or the controlling person of whom has been determined 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 as a result of the taking of due diligence measures no later than on 30 June 2016. The specified account holder shall submit the Taxpayer Identification Number of the United States of America to the reporting Estonian financial institution no later than on 31 December 2016.

§ 231.  Implementation of Chapter 11 of this Act

 (1) A reporting Estonian financial institution shall apply the reporting and due diligence measures specified in Chapter 11 of this Act and collect information concerning financial accounts opened in 2016 for the first time by 31 December 2016.

 (2) A reporting Estonian financial institution shall apply reporting and due diligence measures and collect information for pre-existing financial accounts for the first time as follows:
 1) for pre-existing individual high value accounts in accordance with the conditions of Section 8 C (15) of Annex 1 of the Directive by 31 December 2016;
 2) for pre-existing individual lower value accounts in accordance with the conditions of Section 8 C (14) of Annex 1 of the Directive by 31 December 2017;
 3) for pre-existing entity accounts in accordance with the conditions provided for in Section 5 E (1) of Annex 1 of the Directive by 31 December 2017.

 (3) Upon application of reporting and due diligence measures provided for in Annexes 1 and 2 of 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 individual account holder upon identification of his or her tax residency if the reporting Estonian financial institution has no ground to doubt the accuracy of the data;
 3) apply due diligence measures with regard to the pre-existing entity accounts and submit information about them after the total balance or value of the financial accounts exceeds the maximum rate specified in Section 5 E (1) of Annex 1 of the Directive;
 4) consider as pre-existing such financial account which is opened at any time by the account holder of the pre-existing account in the same financial institution and which is treated by the financial institution as one financial account together with other financial accounts of such 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 for in this section.

 (4) Upon identification of the financial account for the purposes of subsection 3 of this section a reporting Estonian financial institution shall apply rules related to account balance aggregation and currency rules provided for in Section 7 C of Annex 1 of the Directive. The negative account balance aggregation or value received as a result of applying the specified rules shall be deemed as a zero value.

 (5) The specifications provided for in subsection 3 of this section shall be 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 shall apply the reporting and due diligence measures specified in Chapter 11 of this Act and shall collect 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 shall have the right specified in clause 4 of subsection 3 of § 231 of this Act also upon performance of the obligations deriving from 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 shall also be 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 decisions which have been issued since 1 January 2012.

 (2) The preliminary decision issued during the period from 1 January 2012 to 31 December of 2013 is included in the automatics exchange of information if it is valid as at 1 January 2017.

 (3) The tax authority shall communicate the data concerning the preliminary decisions 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 shall be 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 shall submit 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]

§ 235.  Implementation of Chapter 23 of this Act

 (1) The provisions of Chapter 23 of this Act shall be 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, is applied retroactively as of 30.06.2020]

 (2) The information provider shall submit 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, is 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 for in subsection 2 of § 2013 of this Act shall begin to run from 1 January 2021. In the case of arrangements specified in subsection 3 of § 2013 of this Act the information provider shall submit for the first time new or additional information by 30 April 2021.
[RT I, 24.11.2020, 2 – entry into force 04.12.2020, is 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 24of this Act to the sellers who are registered on the platform as of 1 January 2023, at the latest by 31 December 2024, and submits information about them and, in relevant cases, information about immovable property or part thereof leased by them for 2023 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 shall enter into force on 1 January 2015.


1 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), amended by Directives 2014/107/EU (OJ L 359, 16.12.2014, pp 1–29), (EU) 2015/2376 (OJ L 332, 18.12.2015, pp 1–10), (EU) 2016/881 (OJ L 146, 03.06.2016, pp 8–21), (EU) 2016/2258 (OJ L 342, 16.12.2016, pp 1–3), (EU) 2018/822 (OJ L 139, 05.06.2018, pp 1–13), (EU) 2020/876 (OJ L 204, 26.06.2020, pp 46–48) and (EU) 2021/514 (OJ L 104, 25.03.2021, pp 1–26) [RT I, 29.12.2022, 1 – entry into force 01.01.2023]

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