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Estonian residents declare EUR 5.7 b income for 2012

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Income returns filed with the Estonian tax authority in 2013 declared a total 5.7 billion euros in income for 2012 and the number of people who declared their income was 647,729, 4,184 more than in the preceding year.

The number of returns filed was 564,985, 3,532 more than last year, the Tax and Customs Board said.

Average gross income per person grew 7 percent year on year and the average income in 2012 was 10,428 euros, compared with 9,746 euros in 2011. Wage income in the total amount of 4.4 billion euros was declared by 509,258 individuals. Based on the income tax returns the average wage per month was 715 euros last year, 46 euros higher than in 2011.

The number of people declaring income earned abroad that is subject to taxation in Estonia grew by 16.2 percent. Deductible expenses were declared in the amount of 2.1 billion euros, on a par with 2011.

The sum total of deductibles related to home loan interests decreased by 123 euros per tax return as a result of the decline in Euribor.

The number of people declaring a donation or gift moved up almost 12 percent year on year.

A decline in the number of taxpayers making payments into third pillar pension funds continued and the number was smaller by 3,300 than a year ago.

Of the people that declared their income 23,915 or 4.2 percent received no income during 2012.

A tax refund was paid on the basis of 77.4 percent of the returns. A year ago the corresponding ratio was 78.6 percent. The average size of refund was 223 euros per return, unchanged from a year ago.

Of the tax returns filed 3.6 percent attracted a claim for additional tax payment from the tax authority. The average sum required to be paid additionally was 1,037 euros, 263 euros less than  a year ago.

Of the declarations 19 percent were such that neither a refund nor additional tax had to be paid. In 2012 the share of such declarations was 17.8 percent.

The average annual taxable income of self-employed persons was 2,661 euros last year, 158 euros bigger than in 2011.

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