Self-employed persons

Expand all questions

The state pays advance payments to self-employed persons (natural person entrepreneurs) in the first quarter to cover the social tax in order to help cope with the economic difficulties of the crisis.

The amount of the advance payment of the social security contributions of natural person entrepreneurs in the first quarter shall be transferred to their advance payment accounts in the Tax and Customs Board. If the natural person entrepreneur has already made the advance payment, they can use this money to cover any tax liability either presently or in the future, and they may request to receive it to their bank account.

Both for natural person entrepreneurs and for other taxpayers no tax debt interest calculations will be made within two months, i.e. from March 1 1 March to 1 May, and these interests will not need to be paid later.

If there are problems with payment, natural person entrepreneurs must also submit tax returns correctly, otherwise the State cannot obtain an adequate assessment of the status of entrepreneurs. When a tax debt is incurred, the Estonian Tax and Customs Board recommends the deferral of debt. The payment obligation can be deferred also when the date for payment has not yet arrived, but the tax return has already been submitted.

The calculation of interest from tax debt is suspended from March 1, to May 1. However, this does not mean that the tax should not be paid if it is possible – suspending the calculation of interest does not mean tax exemption.

The natural person entrepreneur needs to take into account that if they suspend their business activities in the Business Register, then their health care insurance will lapse in two months’ time. It would be advisable for people whose health care insurance depends on their activities as a natural person entrepreneur, not to suspend their business activities.

Last updated: 12.05.2020 15:04

Did this response answer your question?

More information about the coronavirus and restrictions related to it is available calling 1247 (from abroad +372 600 1247).