Estonia has the highest tax-exempt income among the Baltic states but Estonians enjoy fewer tax breaks than Latvians or Lithuanians, it appears from a comparison of the three countries' tax benefits.
Estonia has fewest income tax-related benefits among Baltic states
20th February 2013, 16:50
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Unlike residents of other countries, Estonians cannot claim an income tax rebate on life insurance, nor is it possible to claim a refund in case voluntary funded pension payments are made for another person, Swedbank said.
A Latvian taxpayer enjoys a tax allowance of 100 euros a month per each child. In Estonia the sum is 144 euros but it is applicable starting from the second child, and in Lithuania it is 29 euros a month for the first and 58 euros for each subsequent child.
In Latvia outlays on healthcare services can be partly deducted provided they do not pertain to dental care or scheduled surgery.
The Estonian Tax and Customs Board began accepting tax declarations for 2012 from private individuals on February 15. The biggest changes this year are a 40 percent reduction in the deduction limits for training expenses, housing loan interest and donations, capped at 1,920 euros per person, and deductions for voluntary funded pension contributions, with a limit of 15 percent of income but not exceeding 6,000 euros.