Estonia

Personal scope of application As per 16 April 2024

Are there any deviations from the Directive in defining the intermediary?
2021/06/17	There are no deviations from the Directive except that the term "intermediary" has been changed to "Information provider" in the domestic legislation.
How is an intermediary defined? Is there a differentiation between a corporate entity and an individual person?
2021/06/17	Intermediary (information provider) is defined as a person who has provided the service of design, marketing, organization, or making available for implementation or management of a reportable arrangement or a person who has provided assistance or advice upon provision of such service.Reporting obligation lies on the intermediary who meets at least one of the following conditions:1) the person is a resident in Estonia within the meaning of § 6 of the Income Tax Act;2) the services related to the reportable arrangement are provided through a permanent establishment in Estonia owned by the person;3) the person is founded in Estonia or its activities are regulated by the Estonian legislation;4) the person is a member of an Estonian professional association which unites persons providing legal or tax advisory services.There is no differentiation between a corporate entity/advisor.
Can a corporate tax department (or its members) within a MNE or within a group of entities qualify as an intermediary?
2021/06/17	No. In case there is no intermediary involved (as defined above), the reporting obligation in respect of a reportable cross-border arrangement lies with the relevant taxpayer.
How are the actions of designing, marketing, organizing, making available for implementation or managing the implementation of a tax arrangement defined?
2021/06/17	The actions of designing, marketing, organizing of a cross-border arrangement are not defined in the domestic legislation or guidelines.The actions of making available for implementation or managing the implementation of a cross-border arrangement are also not defined in the domestic legislation or guidelines but there is a specific remark that these actions may include any technical assistance for implementing the arrangement.
Have the legal preconditions regarding the territorial nexus for an intermediary been implemented in accordance with the Directive?
2021/06/17	There are no deviations from the Directive.
Are there any other conditions apart from those of the Directive, such as the territorial nexus of a tax arrangement to a certain Member State, which trigger a reporting obligation of an intermediary (e.g. including intermediaries from outside the EU)?
2021/06/17	There are no deviations from the Directive.
In which cases is the relevant taxpayer obliged to report? Are there deviations from the Directive?
2021/06/17	The relevant taxpayer is obliged to report if:- the intermediary has no obligation to provide information on such arrangement in any of the Member States (non-EU intermediaries or intermediaries with legal privileges) or- if there is no intermediary involved.There are no deviations from the Directive.
Are there any other persons beside intermediaries or relevant taxpayers obliged to report?
2021/06/17	There are no deviations from the Directive.
Are there any deviations from the Directive in defining the relevant taxpayer?
2021/06/17	There are no deviations from the Directive.

Mechanism to avoid multiple reporting

Which measures have been taken to avoid multiple reporting obligations referring to an intermediary obliged to report in several countries? Are there deviations from the Directive?
2021/06/17	If the intermediary is obliged to report in several countries, the intermediary shall have the right to disregard the reporting obligation if it has evidence that the reporting obligation has been performed in another country.There are no deviations from the Directive.
Which measures have been taken to avoid multiple reporting obligations referring to more than one intermediary obliged to report? Are there deviations from the Directive?
2021/06/17	If there is more than one intermediary involved in the same reportable arrangement, the intermediary shall have the right to disregard the reporting obligation if it has evidence that the reporting obligation has been performed by another intermediary.There are no deviations from the Directive.
Which measures have been taken to avoid multiple reporting obligations referring to a relevant taxpayer obliged to report several countries? Are there deviations from the Directive?
2021/06/17	If the relevant taxpayer is obliged to report in several countries, the relevant taxpayer shall have the right to disregard the reporting obligation if it has evidence that the reporting obligation has been performed in another country.There are no deviations from the Directive.
Which measures have been taken to avoid multiple reporting obligations referring to more than one relevant taxpayer obliged to report? Are there deviations from the Directive?
2021/06/17	If there is more than one relevant taxpayer involved in the same reportable arrangement, the intermediary shall have the right to disregard the reporting obligation if it has evidence that the reporting obligation has been performed by another relevant taxpayer.There are no deviations from the Directive.
How does the National Tax Authority expect the conditions for exemption from filing a report to be met?
2021/06/17	The guidelines of the tax authorities explain that the intermediary or the relevant taxpayer has to provide the reference number of the arrangement if it has already been given from the relevant tax authority or other proof that the information about the arrangements has been provided to the relevant tax authority.There are no deviations from the Directive.

Material scope of application

Are national tax arrangements subject to reporting under the Directive?
2021/06/17	No.
Which taxes are affected? Are there deviations from the Directive?
2021/06/17	Only direct taxes are affected. There are no deviations from the Directive.
Does the hallmark catalogue deviate from the Directive? If yes, to what extent?
2021/06/17	There are no deviations from the Directive.
Which hallmarks are linked with the main benefit test?
2021/06/17	There are no deviations from the Directive.
How is the main benefit test defined?
2021/06/17	The main benefit criterion is complied with if, taking into account all the relevant circumstances, getting a tax advantage is a reasonably expected main benefit or one of the main benefits resulting from the arrangement.
How is a tax advantage defined?
2021/06/17	There is no explicit definition in the local legislation.
Are there any deviations from the Directive in defining a cross-border arrangement?
2021/06/17	There are no deviations from the Directive.
Is there a white list defining arrangements explicitly excluded from a reporting obligation? If yes, please provide details.
2021/06/17	No.
Are there any deviations from the Directive in defining associated enterprises?
2021/06/17	There are no deviations from the Directive.

Reporting process

When is a cross border arrangement made available for implementation (e.g. handover of contract documents)?
2021/06/17	There is no specific guidance.
When is a cross-border arrangement ready for implementation?
2021/06/17	There is no specific guidance.
When has the first step in the implementation of a cross-border arrangement been made?
2021/06/17	There is no specific guidance.
Which information should be included in the report? Are there deviations from the Directive?
2021/06/17	There are no deviations from the Directive.
What does the reporting process look like? Are there deviations from the Directive?
2021/06/17	The report can be submitted to the Estonian Tax and Customs Board via a specific section in the e-Taxboard in .xml format.
Is the entire report to be provided by the intermediary/relevant taxpayer? Who must provide the report?
2021/06/17	The primary reporting obligation lies on the intermediary who should provide the entire report. If the reporting obligation is shifted to the relevant taxpayer then it is the latter that should provide the entire report.
What are the respective deadlines for the intermediary and the relevant taxpayer to file the report? Are there deviations from the Directive in terms of filing the information within 30 days?
2021/06/17	There are no deviations from the Directive.
Which numbers are assigned by local tax authorities to the cross-border arrangements?
2021/06/17	There is no specific guidance.
What is the reporting deadline for arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020?
2021/06/17	28.02.2021.
When is the reporting deadline for arrangements for which the event triggering the reporting obligation lies between 1 July 2020 and 31 December 2020?
2021/06/17	31.01.2021.
When is the reporting deadline for arrangements for which the event triggering the reporting obligation lies after 1 January 2021?
2021/06/17	There are no deviations from the Directive - in 30 days after the triggering event.

Penalties

In which cases are penalties imposed?
2021/06/17	There is no fixed list of breaches that would lead to penalties. There is just a general provision that the failure to comply with any of the reporting related obligations is punishable by penalty payment and/or fine.
What are the penalties?
2021/06/17	Penalty payment in order to enforce the performance of any of the obligations of the intermediary/relevant taxpayer may not exceed 3,300 euros, whereas it may not exceed 1,300 euros for the first event and 2,000 euros in the second event.Additionally, a fine of up to 3,200 euros can be imposed on the intermediary/relevant taxpayer for the failure to comply with any of the reporting related obligations.
Is a distinction made between penalties imposed on intermediaries/relevant taxpayers/other persons obliged to report?
2021/06/17	No distinction is made between intermediaries and relevant taxpayers.
What are the penalties in case of redundant reports? A redundant report is a report, which was filed, although there is no obligation to file one.
2021/06/17	There are no penalties for redundant reports.
Do the penalties differ with regard to incomplete, incorrect, missing or late reports? Are there any gradations?
2021/06/17	The penalties do not differ.
Are arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020 treated differently in the means of penalties?
2021/06/17	1. In case the penalties do not differ, please fill in with: "The penalties do not differ";2. In case the penalties differ, please fill in with the penalties mentioned in the national law under a bullet points list; in addition to this, the amounts should be included in both the local currency and EUR (for ease of comparison).

Other aspects

Do already other reporting regimes on cross-border arrangements exist?
2021/06/17	No other disclosure regimes exist.
Are there any other special deviations from the Directive?
2021/06/17	There are no deviations from the Directive.
What is the name of the national Tax Authority responsible for DAC6?
2021/06/17	'Tax and Customs Board (in Estonian: Maksu- ja Tolliamet).
Do any other obligations apart from reporting a reportable cross-border arrangement exist under the national DAC6 legislation? (i.e. indication of the arrangement in the tax return)
2021/06/17	There are no other obligations.

Professional privilege/secrecy

Who is primarily obliged to report? Is there a primary reporting obligation of the intermediary or the relevant taxpayer? Is there legal privilege and in how far has it been considered for allocating the reporting obligation?
2021/06/17	The primary reporting obligation lies on the intermediary.The intermediary has the right not to report the arrangement if it would constitute a violation of the obligation to keep professional secrecy arising from the law. According to the guidelines of the tax authorities the legal professional privilege is applicable to advocates, employees of law offices and auditors.The relevant taxpayer can however release the intermediary from the obligation to keep professional secrecy and then the reporting obligation would transfer back to the intermediary.
Does the reporting obligation breach a legal professional privilege under national law?
2021/06/17	No.
Does the national law make reference to professional privilege or professional secrecy?
2021/06/17	Professional privilege.
What is the difference, as per the national law, between professional privilege and professional secrecy?
2021/06/17	There is no guidance.
To which categories of intermediaries does the professional privilege or professional secrecy apply?
2021/06/17	The legal professional privilege to avoid reporting is applicable to advocates, employees of law offices and auditors.
In the context of the reporting obligation, under which conditions are the intermediaries entitled/obliged to make use of professional privilege or professional secrecy?
2021/06/17	There are no conditions to follow or steps to take to make use of professional privilege.
In cases in which professional privilege or secrecy applies, please describe the procedure for notification.
2021/06/17	The intermediaries have the obligation to inform other intermediaries or if there aren't any then the relevant taxpayer about the legal professional privilege.
Does the national law provide specific conditions to waive professional privilege or professional secrecy?
2021/06/17	Yes. The client can give permission to the intermediary to waive professional privilege.

Tanel Molok

Senior Associate

3726400926

Estonia

Personal scope of application As per 16 April 2024

Are there any deviations from the Directive in defining the intermediary?

How is an intermediary defined? Is there a differentiation between a corporate entity and an individual person?

Can a corporate tax department (or its members) within a MNE or within a group of entities qualify as an intermediary?

How are the actions of designing, marketing, organizing, making available for implementation or managing the implementation of a tax arrangement defined?

Have the legal preconditions regarding the territorial nexus for an intermediary been implemented in accordance with the Directive?

Are there any other conditions apart from those of the Directive, such as the territorial nexus of a tax arrangement to a certain Member State, which trigger a reporting obligation of an intermediary (e.g. including intermediaries from outside the EU)?

In which cases is the relevant taxpayer obliged to report? Are there deviations from the Directive?

Are there any other persons beside intermediaries or relevant taxpayers obliged to report?

Are there any deviations from the Directive in defining the relevant taxpayer?

Mechanism to avoid multiple reporting

Which measures have been taken to avoid multiple reporting obligations referring to an intermediary obliged to report in several countries? Are there deviations from the Directive?

Which measures have been taken to avoid multiple reporting obligations referring to more than one intermediary obliged to report? Are there deviations from the Directive?

Which measures have been taken to avoid multiple reporting obligations referring to a relevant taxpayer obliged to report several countries? Are there deviations from the Directive?

Which measures have been taken to avoid multiple reporting obligations referring to more than one relevant taxpayer obliged to report? Are there deviations from the Directive?

How does the National Tax Authority expect the conditions for exemption from filing a report to be met?

Material scope of application

Are national tax arrangements subject to reporting under the Directive?

Which taxes are affected? Are there deviations from the Directive?

Does the hallmark catalogue deviate from the Directive? If yes, to what extent?

Which hallmarks are linked with the main benefit test?

How is the main benefit test defined?

How is a tax advantage defined?

Are there any deviations from the Directive in defining a cross-border arrangement?

Is there a white list defining arrangements explicitly excluded from a reporting obligation? If yes, please provide details.

Are there any deviations from the Directive in defining associated enterprises?

Reporting process

When is a cross border arrangement made available for implementation (e.g. handover of contract documents)?

When is a cross-border arrangement ready for implementation?

When has the first step in the implementation of a cross-border arrangement been made?

Which information should be included in the report? Are there deviations from the Directive?

What does the reporting process look like? Are there deviations from the Directive?

Is the entire report to be provided by the intermediary/relevant taxpayer? Who must provide the report?

What are the respective deadlines for the intermediary and the relevant taxpayer to file the report? Are there deviations from the Directive in terms of filing the information within 30 days?

Which numbers are assigned by local tax authorities to the cross-border arrangements?

What is the reporting deadline for arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020?

When is the reporting deadline for arrangements for which the event triggering the reporting obligation lies between 1 July 2020 and 31 December 2020?

When is the reporting deadline for arrangements for which the event triggering the reporting obligation lies after 1 January 2021?

Penalties

In which cases are penalties imposed?

What are the penalties?

Is a distinction made between penalties imposed on intermediaries/relevant taxpayers/other persons obliged to report?

What are the penalties in case of redundant reports? A redundant report is a report, which was filed, although there is no obligation to file one.

Do the penalties differ with regard to incomplete, incorrect, missing or late reports? Are there any gradations?

Are arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020 treated differently in the means of penalties?

Other aspects

Do already other reporting regimes on cross-border arrangements exist?

Are there any other special deviations from the Directive?

What is the name of the national Tax Authority responsible for DAC6?

Do any other obligations apart from reporting a reportable cross-border arrangement exist under the national DAC6 legislation? (i.e. indication of the arrangement in the tax return)

Professional privilege/secrecy

Who is primarily obliged to report? Is there a primary reporting obligation of the intermediary or the relevant taxpayer? Is there legal privilege and in how far has it been considered for allocating the reporting obligation?

Does the reporting obligation breach a legal professional privilege under national law?

Does the national law make reference to professional privilege or professional secrecy?

What is the difference, as per the national law, between professional privilege and professional secrecy?

To which categories of intermediaries does the professional privilege or professional secrecy apply?

In the context of the reporting obligation, under which conditions are the intermediaries entitled/obliged to make use of professional privilege or professional secrecy?

In cases in which professional privilege or secrecy applies, please describe the procedure for notification.

Does the national law provide specific conditions to waive professional privilege or professional secrecy?