Tax & Legal Updates

Latest tax and legal news  prepared by our professionals from Tax Department and Law Firm Deloitte Legal

March 2017

Amendments to Tax Information Exchange Act

On 15 March 2017, Estonian parliament approved the amendments in Tax Information Exchange Act. With the before mentioned law, the European Directive on administrative cooperation in the field of taxation is implemented into Estonian law. According to the amendments, as of year 2017 Tax Authorities will start changing information on tax rulings and as of year 2018 country-by-country (CbC) report, which will include information about the group entities corporate income tax obligation, profit, equity, long-term assets, area of activity and employees. The first reporting year will be 2016 and the report must be submitted by the end of 2017 at the latest.

More information: Krisli Klaarman, Deloitte Advisory Tax Advisor


According to the Supreme Court, the advertisement tax is not in conflict with Estonian constitution

The topic of this dispute was the possible conflict between the advertisement tax and Estonian constitution. Plaintiff disputed against advertisement tax imposed by municipality of Pärnu that it is not in accordance with Estonian constitution.
According to decision of Supreme Court the constitution allows state taxes and local taxes to be regulated differently. Also, in case of local taxes, the law is deemed to include only local tax objects, tax payers and tax recipients.
However, there are other advertisement tax issues currently in process with the Supreme Court, which means, that this specific verdict might not be the ultimate truth.

More information available here.

The conditions of being a posted worker and the registration of an employee on a business trip

Increasing number of employers have the possibility to offer their employees the opportunity to work in other countries or for employers to buy services from another country. In such cases a frequently asked question might arise- can the current situation be defined as a posted worker or a business trip for said employee? The importance to distinguish between a posted worker and an employee on a business trip, is to know which countries’ labor law applies and to which country the payroll taxes need to be paid.

Full article can be read here.

More information: Helen Altküla, Law Firm Deloitte Legal Senior Associate,

Offering discounts to employees might bring tax risks

Offering employees products or services with discounts is common and a good practice among most firms. Still, quite frequently the knowledge of possible tax risks that may arise is lacking amongst the employers. In case discounts are offered to employees, fringe benefit and VAT risks should be taken into account.

Full article available here (in Estonian).

More information: Krisli Klaarman, Deloitte Advisory Tax Advisor

Deloitte helps establish the free movement of data as the EU fifth freedom

Deloitte is helping the European Commission to conduct a study, which aims at identifying and analyzing the key aspects, which hamper or may hamper the free flow of data in the EU. All the Deloitte clients, whose businesses depend on data or who are interested in implementing the free flow of data into their business activities are invited to complete the respective survey.

Full article can be read here.

More information: Natalia Aleksejeva, Law Office Deloitte Legal Attorney,


Big data brings companies under the spotlight of the Competition Authority

The collection of data in today’s businesses is of such importance that data protection laws may be not enough anymore with regard to them and in addition competition law needs to be applied. For the companies managing big data it practically means more control from the State institutions and therefore also more obligations and potential sanctions for non-compliance.

Full article can be read here.

More information: Natalia Aleksejeva, Law Office Deloitte Legal Attorney,

Procurement fraud – who has the obligation to detect them?

In the public sector as well as the private sector, it is common to order certain services or products. During the selection process, seemingly best business partner is chosen, however in reality the selection process might be heavily influenced by the personal self-interest of the contractor representative. Adequate internal arrangements and instructions are definitely positive signs, as they help prevent above-mentioned situations. Unfortunately completely excluding all possible criminal activity is impossible. Conducting procurement forensic control, which is a procurement fraud investigation service, could be helpful. This service is conducted by field specialists, who have a long and international background regarding procurement fraud detection and have all necessary technical skills and solutions.

Full article can be read here.

More information: Merit Lind, Head of Law Firm Deloitte Legal,


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