Estonia, Financial Services, Taxation

International Internet Magazine. Baltic States news & analytics Saturday, 06.06.2020, 22:48

Estonian Tax, Customs Board: EUR 42 mln of declared labor taxes have not been paid yet

BC, Tallinn, 18.05.2020.Print version
Approximately 87,600 companies in Estonia have filed labor tax returns for April and need to pay a total of 460 mln euros in labor taxes to the state, of which about 42 mln euros has currently not been paid yet, writes LETA/BNS.

For April, 4,600 fewer companies filed income and social tax returns than a month earlier. Among them were 99 larger taxpayers who paid more than 10,000 euros in labor taxes for March, Imbi Kaunismaa, chief specialist of the strategical analysis department of the Tax and Customs Board, said at a press briefing on Monday.


Compared to March, the payment of labor taxes did not decrease significantly. Compared to the previous month, the amount of tax paid is five mln euros lower and, compared to April of the previous year, 63 mln euros lower.


Valdur Laid, director general of the Tax and Customs Board, said at the press briefing that entrepreneurs should submit declarations on time even if there are difficulties in paying taxes. "Otherwise, it will not be possible to reschedule the tax arrears, apply for a discount of up to 100% on interest during the rescheduling, and also receive the state support measures," he said.


Laid said that it is worth submitting a rescheduling application as soon as possible, as it will take time to review them. "However, in connection with the end of the emergency situation, the legislation obliges us to start calculating interest on the tax arrears not rescheduled and collecting the debt," he added.


In terms of volume, debt has grown the most in the manufacturing industry, altogether over nine mln euros. In the information and communications sector, the debt rate is 4.4 mln euros, and in the administrative and support service activities, the debt rate is 4.1 mln euros.


In terms of share, the largest indebtedness is in accommodation and catering, where approximately 56% of the declared obligations are outstanding. This sector is followed by administrative and support service activities, where 21% of labor taxes have not been paid, and agriculture, where 14% of labor taxes are outstanding.


By counties, the largest share of unpaid labor taxes is in Voru County, Jogeva County, Saare County and Laane County companies, all with 10%.


The number of jobs and the salary fund decreased the most in the accommodation and catering sector, where the number of jobs decreased by one tenth compared to March and the salary fund decreased by 44%. Taking into account the support of the Unemployment Insurance Fund, the decrease was 19%. Similarly, there were a tenth fewer jobs in the arts and entertainment sector, but the sector's salary fund fell by 21%. Taking into account the Unemployment Insurance Fund's support, the decline was 16%.

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