On 16 February 2023, the Government Legislation Centre published an on-line draft dated 9 February 2023 (“Bill”) of a Finance Minister regulation extending the time for achieving compliance with certain duties in relation to corporate income tax.
The Bill proposes to defer until 30 June 2023 the due date for CIT payers to:
1) file a statement of income (loss) for the tax year ending between 1 December 2022 and 28 February 2023 (inclusive of both dates);
2) pay the amount of tax reported in that statement or the difference between the amount of tax due on the income therein stated and the total amount of advance tax payments due as of the start of the tax year.
In addition, the Bill proposes to defer the following until 30 June 2023:
1) the due date for taxpayers subject to flat-rate (“Estonian”) CIT to file their statement of income (as referred to in Article 28r(1) of the CIT Act); this will apply to taxpayers whose tax year ends between 1 December 2022 and 28 February 2023 (inclusive of both dates);
2) the due date for taxpayers subject to flat-rate (“Estonian”) CIT to ensure their CIT return discloses gross income, costs and conversion income and to pay the conversion tax due; this will apply to taxpayers whose first year of Estonian CIT taxation begins between 1 January 2023 and 1 March 2023 (inclusive of both dates);
3) the due date for CIT payers with branches or establishments located in a different territorial subdivision of the country than their seat to file form CIT-ST, i.e. a statement of such branches and establishments and their locations, including the headcount of people working in each of them under contracts of employment, all as at 31 December 2022.
It is proposed that the regulation should enter into force the next day after its official publication.
Currently the Bill is undergoing intra-cabinet consultations. We will keep you updated on the progress of this legislation.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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