Ceasing your tax residency in Estonia is a significant step that requires careful consideration and adherence to specific legal processes. Whether you're moving abroad or changing your tax domicile, it's crucial to follow these steps to ensure compliance with Estonian tax laws.
Determine Eligibility
First and foremost, assess if you meet the criteria for ceasing tax residency in Estonia. According to Estonian tax law, you are considered a tax resident if you have a permanent residence in Estonia, stay in Estonia for at least 183 days over a period of 12 months, or if you are an Estonian diplomat serving abroad. If you no longer meet these conditions, you may be eligible to cease your tax residency.
Notify the Estonian Tax and Customs Board (ETCB)
You must inform the Estonian Tax and Customs Board of your intention to cease your tax residency. This can be done by submitting a formal application or notification. Ensure that all required documentation, such as proof of new residency, is included.
Settle Outstanding Tax Obligations
Before your tax residency can be officially ceased, you must settle any outstanding tax obligations. This includes ensuring that all income tax returns are filed up to the date of your departure and that any taxes owed are fully paid.
Obtain Confirmation
After processing your application, the Estonian Tax and Customs Board will issue a confirmation of cessation of tax residency. Keep this document as proof of your non-resident status for future reference.
Update Personal Information
Notify other relevant institutions and authorities of your change in tax residency status. This may include updating your address with financial institutions, employers, and other relevant bodies to reflect your new residency status.
Legal References
- Income Tax Act (Tulumaksuseadus)
- Taxation Act (Maksukorralduse seadus)
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