Taxpayers registration and e-services provided by the Estonian Tax and Customs Board Karin Aleksandrov Chief Expert Service Management Department

2 ESTONIA Population 1.35 million Internet usage 71% Internet banking 98% Wifi connection is available in more than 1100 public places ESTONIAN TAX AND CUSTOMS BOARD state agency under the Ministry of Finance ca 2000 officials tasks: collecting taxes to the state budget and protection of society and the economy clients: all taxpayers, both natural and legal persons (incl companies and self- employed), and customs clients the first public body in Estonia that started to offer electronic services to its clients

3 Taxpayers registration based on other state registers Estonian Tax and Customs Board maintains the Register of Taxable Persons in order to ensure the performance of functions imposed on the tax authority by law Registration of taxable persons in Estonia is based on data of other registers: Data about natural persons: from the Population Register Data about legal persons: through the Centre of Registers and Infosystems that keeps different state registers, e.g Commercial Register Non-profit Associations and Foundations Register Register of Religious Associations Register of State and Local Government Agencies

4 Taxpayers registration at the Tax and Customs Board The following persons are registered at the Tax and Customs Board: VAT-liable persons permanent establishment of a foreign legal person non-resident employers based on the taxpayers application non-resident paying land tax in Estonia based on the information from local governments non-resident submitting the income tax return in Estonia based on the information from the income tax return notaries, sworn translators or bailiffs based on the information from the Ministry of Justice etc

5 The unique Personal Identification Code The Personal Identification Codes (PIC) are generated and maintained by the Population Register of Estonia PIC is a 11-digit number formed on the basis of the gender and date of birth of a person Identification information with regard to legal persons is provided through the Centre of Registers and Infosystems. Although companies and organisations have a unique register code, there is no such thing as eID of the company. All transactions with regard to legal persons are performed by physical persons using their personal ID Code; corresponding access rights are maintained separately. PIC functions as a unique identifier for Estonian citizens and residents in both governmental and business services.

6 The ID-card - primary personal identification document in Estonia the ID card has 3 main functions : 1) visual identification 2) authentication when utilizing online services 3) digital signing the card contains a chip holding a personal data file (incl PIC) and two certificates: one for authentication purposes, and one for qualified digital signatures the ID-card certificates are linked to the various registers through the Personal Identification Code

7 E-services with the ID-card signing documents digitally; getting access to the databases and information systems of the public sector via the X-Road – an interface between databases with standard authentication system; using Internet-based services provided by the state as well as by private companies: online banks company services public services: e-school, ID-ticket, etc governmental services: e-elections, Commercial Register, e- Tax/e-Customs, etc

8 E-services of the Estonian Tax and Customs Board – e-Tax /e-Customs e-Tax/e-Customs – tax and customs services on the Internet was opened in 2000 offers 24 hours a day about 30 services for natural persons over 50 services for legal persons enables secure data exchange, personal information high-speed, simple, convenient, paper-free is a quite unique technical solution on the European tax map as to taxpayer service and communication

9 How to become a user of the e-Tax/e-Customs An agreement for the use of the e-tax/e-customs is concluded with the Tax and Customs Board natural persons - electronically when gaining the first access to the e-Tax/e-Customs legal persons – in the tax and customs office All services to private client are available immediately after the conclusion of the agreement On behalf of a legal person, on the basis of a power of attorney on or more natural persons may use the e-services. It is possible to determine for every authorised person which services meant for a business client he/she may use in the e-Tax/e-Customs

10 Using e-Tax /e-Customs via secure gates using ID card using mobile-ID entering with passwords Internet banks (7 banks – cooperation partners) Portal (home page) of the Tax and Customs Board:

11 7 reasons to file the Income Tax Return via e-Tax/e-Customs saving time and nerves income tax return is pre-filled instant tax calculation help within the reach of a phone call money back within five working days no additional expenses for taxpayers environment in Russian and English also available

12 Example of Functionality: Natural Person Income Tax Return 1. Collect information 2. Pre-fill the return 4. Refund or inform 3. Let the taxpayer confirm or correct

13 Example of Functionality (2) Banks, pension funds, insurance, educational institutions, employers and others provide data to TCB We pre-fill the tax return for the taxpayer and make it available on the Internet or in the service office The taxpayer reviews the return and confirms or corrects it or asks the information provider to correct their information If everything is OK, well refund in 5 working days If there are problems, well inform the taxpayer via the Internet what was wrong or what he or she has to do Our computer will check the information

14 Statistics of the electronically filed tax returns: Corporate Income Tax and Employer Tax Returns – 96.8% VAT Returns – 97.6% Natural Person Income Tax Returns – 92.4% Customs Declarations – 99.8% E-Tax/e-Customs is the most frequently used service channel of the Estonian Tax and Customs Board – 95% of the clients have used it and the service was rated 4.54 on a 5-point scale (Data of the client satisfaction survey 2008) e-Tax/e-Customs is popular

15 Thank you!