Estonia: Recent tax-related developments, including reporting obligations for digital platform operators (DAC7)

Recent tax-related developments in Estonia

Recent tax-related developments in Estonia

Notable recent tax-related developments in Estonia are described below.

The government proposed to increase the basic income tax exemption for individuals and to extend the tax exemption on donations to Ukraine—effective 1 January 2023.

  • The annual basic exemption for individuals would be increased to €7,848 (from €6,000). The annual income threshold at which the basic exemption would start to decrease would remain the same, i.e., €14,400. An individual whose annual income exceeds €21,200 would not be entitled to a basic exemption, except old-age pensioners, who, beginning 1 January 2023, would be entitled to a monthly basic exemption of €704, regardless of the size of their income.
  • The tax exemption on donations made by Estonian resident legal entities to help preserve Ukraine's territorial integrity and sovereignty and provide humanitarian aid for the Ukrainian people would be extended to 2023. The exemption would apply only to donations to organizations listed in the Income Tax Act. 

The government also proposed measures regarding reporting obligations for digital platform operators under which, beginning 1 January 2023, such operators would be required to collect certain information about sellers and service providers on their platforms and report it to the tax authority, which would then automatically exchange such information with other jurisdictions.

Read a November 2022 report prepared by the KPMG member firm in Estonia


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.