E-Tax is the electronic tax filing system set up by the Estonian Tax and Customs Board.
Since its introduction in 2000, it has drastically reduced the time spent by individuals and entrepreneurs on filing taxes. In 2002, the system matured tremendously with automated tax declaration forms.
Each year, around 95 percent of tax declarations in Estonia are filed electronically.
Using a secure ID, a taxpayer logs onto the system, reviews their data in pre-filled forms, makes any necessary changes, and approves the document with a digital signature. The process typically takes three to five minutes. From 2015 one-click tax returns are also available, all known data is displayed to the citizen together with the calculated result, then all they have to do is click on the confirmation button; all this takes less than a minute.
In addition to individual tax returns, other declarations can be made in the system:
- An enterprise’s declarations for income tax, social tax, unemployment insurance and contributions to mandatory funded pension
- Value-added tax returns
- Alcohol excise duty, tobacco excise duty, fuel excise duty and packaging excise duty returns
- INF declarations
- Customs declarations
*Estonian information technology companies have long-standing experience in modernizing public finance business processes. IT companies Cybernetica, Nortal and Icefire have developed several e-tax solutions for public sector institutions in Estonia and abroad.