ADVERTISING TAX DISCOUNT BASED ON THE EMERGENCY SITUATION
Based on Tallinn City Government 08.04.2020 resolution no 455-k, the Tallinn City Government will grant a 50% tax discount for advertisements displayed between 1 April and 30 September 2020.
A tax reduction will not be applied to advertisement specified in § 5 para 3 of the tax regulation.
In order to qualify for the discount, the object of taxation (advertisements) must be reflected in the appendix to the advertising tax return called "Form RMD Annex C". Make sure that the selection of the tax discount is based on the type of advertising carrier (display of static ads or multiple alternating ads).
On the main tax declaration form, the taxable value should be indicated on R3.1 for static ads and on R3.2 for multiple alternating ads.
To implement the tax reduction, please add Tallinn City Government resolution no. 455-k to line R3.4.
An application does not have to be submitted to be eligible for the 50% discount for the aforementioned period.
Taxable persons who have submitted tax returns on time and declared their advertisements for the period between 1 April and 30 September 2020 without a discount, have the right to correct their tax declarations to reflect the 50% discount based on the emergency situation.
Advertising tax in Tallinn
In order to help alleviate the financial situation of enterprises during the current emergency, the Tax and Customs Board (MTA) will cease the calculation of interest while the emergency lasts. The emergency-related relief will apply retroactively from 1 March to 1 May 2020. However, all declarations must still be submitted on time and all taxes must be paid.
The interest exemption also applies to the interest charged on any advertising tax debt.
As of 1 April 2020, the advertising tax rate in Tallinn for campaign advertisements on outdoor advertising carriers that display multiple images will be calculated based on an 1.5 differential, i.e. EUR 0.85 per square metre of advertising space per calendar day.
Outdoor advertising carriers that display multiple images include advertising carriers (information panels, billboards, digital or LED screens etc) that display ads with moving images or multiple alternating images.
The data for advertising on advertising carriers that display multiple images should be declared on ‘form RMD annex B’ of the advertising tax declaration, and the total taxable amount on Annex B should be entered on line R 2.1 of the declaration form. Sample
The differentiated tax rate will apply to advertising displayed on outdoor advertising carriers with multiple images for which declarations are submitted and payment is due as of 1 April 2010 or later.
The advertising tax was established on 17 December 2009 by regulation no. 44 called the Advertising Tax in Tallinn (hereinafter, the regulation), which came into effect on 1 January 2010.
According to the regulation, the object of the taxation is the advertising that is displayed in Tallinn:
- in a public space, which is on a publicly used location or territory that is designated for free movement and use, or on a structure, or part thereof, which is located in the interior space of the structure or outside of the interior space and is directed at the public;
- On privately owned property or structures or is directed at the public outside from the interior space of a structure;
- On the exterior sides of city busses, trams, trolley-buses or taxis, or in their interior space and directed at the public outside, if the user of the means of transportation is a company which, according to the business register, is located in Tallinn, or a sole proprietor, whose enterprise is located in Tallinn, based on the data in the business register;
- On a mobile construction and directed at the public.
- As of 1 January 2017, the tax rate is EUR 0.55 per calendar day for each square metre of advertising space.
- A fivefold differentiated tax rate will apply to advertising that advertises a willingness to provide consumers with credit or loans and/or mediate contracts that prescribe a willingness to provide credit or credit at an annual percentage rate of more than 25% (inclusive) per year.
The direct holders of outdoor advertising mediums or holders of public transport permits or taxi permits are considered to be the persons responsible for the advertising tax.
The taxable periods are calendar weeks, calendar months, calendar quarters or calendar years.
In its first tax declaration of the calendar year, the taxable person shall choose the tax period of its choice.
The taxable period can be changed in the subsequent calendar year.
Submission of an advertising tax declaration
The advertising tax declaration is submitted to the Tax and Customs Board on the first working day of the taxation period at a service office, by using electronic data communication or by mail.
- Submission of tax declarations to the Tax and Customs Board as of 2020 (pdf)
- Submission of tax declarations to the Tax and Customs Board as of 2017 - 2019 (pdf)
- Submission of tax declarations to the Tax and Customs Board as of 2014 - 2016 (pdf)
- Submission of tax declarations to the Tax and Customs Board by filling out a paper form (pdf)
Deadline for the payment of the tax
The deadline for the payment of the tax is the same as the deadline for submitting the tax declaration, i.e. the first working day of the calendar week, calendar month, calendar quarter or calendar year.
Under §15 (1) of the Local Taxes Act and in accordance with § 115 (1) of the Taxation Act, the taxable person shall be obliged to calculate and pay interest on any outstanding tax payment.
Interest shall be calculated from the day following that on which the tax was due, up to and including the day the tax is paid. Based on § 117 (1) of the Taxation Act the interest rate is 0.06% per day.
There are two tax authorities responsible for the Tallinn advertising tax
– the Tallinn City Enterprise Department (TEA) and the Tax and Customs Board (MTA). The division of labour between the tax authorities has been established on 13 June 2013 by administrative contract no. 86. The advertising tax declaration should be submitted to and advertising tax paid to the MTA.
- The Tax and Customs Board bank accounts are listed on the website called the requirement for the payment of taxes; the payment order must include a personal reference number, which can be found by making a personal reference number search;
- The tax declarations should be submitted to the Tax and Customs Board
- The declaration must be submitted electronically if there are more than 10 advertising objects.
The Tax and Customs Board provides information about declaring advertising taxes
- by using e-maksuamet/e-toll
- by email: firstname.lastname@example.org
- by phone: 880 0815
The Tallinn Enterprise Department provides advice on the advertising tax:
- by phone: 609 3300
- by email: email@example.com
- in Tallinn at Kaarli pst 1// Roosikrantsi 2, Tallinn
- on the website: www.tallinn.ee
About the advertising tax
Also read more on the Tax and Customs board website: Tallinn Advertising Tax
On the same subject elsewhere on the internet:
Authorisation of the officials of the Tallinn City Taxation Department (10.01.2020 directive no. T-6-1/20/4)