On 17 March 2022, the Minister of Finance signed the decree on extending the deadline for fulfilling selected obligations related to corporate income tax.
On the same day, a draft decree on extending the deadline for providing information on real estate companies was published on the Government Legislation Centre’s website.
Extended reporting deadlines in CIT for 2021
By way of the decree, the Minister of Finance extended the deadline for settling corporate income tax for 2021. The extension of deadlines falling on 2022 relates to all corporate income tax payers, including those applying the lump-sum tax on corporate income scheme.
Under the decree, the deadlines for:
- submitting tax returns on income (losses) and remitting the tax due (CIT-8, CIT-8AB),
- submitting a statement on income earned and lump-sum due on corporate income (CIT-8E, under the scheme commonly referred to as “Estonian CIT”),
- declaring revenue, costs, and income related to transformations via return by lump-sum corporate income tax payers,
got extended until 30 June 2022.
Anticipated extension of reporting deadlines for real estate companies
On 17 March 2022, a draft decree on extending the deadline for providing information on real estate companies was published on the Government Legislation Centre’s website.
It extends the deadline for submitting information on holding rights in real estate companies with tax or financial year ending in the period from 31 December 2021 to 31 May 2022 until 30 September 2022.
The grounds for extending the deadline provided by the Ministry is that developing IT tools for submitting information by means of electronic communication in conformance with the logical structure prescribed by the Public Information Bulletin, available on the Ministry’s dedicated website would be possible no earlier than May 2022.
The decree is to enter into force on the day following its publication.
It should be kept in mind, that pursuant to Article 45(3f) of the PIT Act and Article 27(1e) of the CIT Act, real estate companies and taxable persons shall inform the Head of the National Revenue Administration by the end of the third month of the end of the tax year of the real estate company, and if the real estate company is not an income tax payer - by the end of the third month of the end of the financial year of the real estate company, by electronic communication means about the rights held in a real estate company.
The information is submitted by:
- real estate companies - on entities holding, directly or indirectly, shares in that real estate company which entitle to at least 5 percent of voting rights in the company or all rights and obligations which entitle to at least 5 percent share in the profit of the company not being a legal person or at least 5 percent of all units or similar rights, including the number of such rights held by each entity, as at the last day of the tax year of the real estate company, and if the real estate company is not an income tax payer - as at the last day of the financial year of the real estate company.
- personal income tax payers and corporate income tax payers holding, directly or indirectly shares in that real estate company which entitle to at least 5 percent of voting rights in the company or all rights and obligations which entitle to at least 5 percent share in the profit of the company not being a legal person or at least 5 percent of all units or similar right, as at the last day of the tax year of the real estate company, and if the real estate company is not an income tax payer - as at the last day of the financial year of the real estate company - on the number of shares, all rights and obligations, units or similar rights held in the real estate company.
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