Chief changes in New Year, from beasts to bankers

Photo: SCANPIX

For the forest owner

Amendments to Forest Act, in force starting January, are conducive to increasingly eager management of forests (read: tree-felling). Thus, a forest owner may, without filing a notice, fell up to 20 solid cubic metres per real estate in a year. Up to now, maximum three cubic metres per hectare was allowed. 

Limits on forest use for small owners were eased – physical persons owning up to five hectares of forest land are released from the duty to file inventory data.

In order to prevent fragmentation of patches, deforestation must now be border-based – in essence, larger clearcuts will be allowed. Meanwhile, full data needs to be presented regarding regeneration cutting, during entire extent of it.

For pension fund units owner

Management fee limits to mandatory funded pension funds were extended by five years – despite criticism.  With conservative funds, this is 1.2 per cent, the rest are limited to 2 per cent.

Pursuant to amendments, shares of funded pension funds may now be inherited by legal persons. Should an estate be declared bankrupt, from now on claims by creditors may be satisfied on account of pension fund units.  

For the politician

Staring the new year, economic interests shall no longer be declared in Riigi Teataja; rather, a separate register will be created at the website of Tax and Customs Board. 

For the farmer

Up to now, single area payment was only paid for such agricultural lands as were registered at PRIA as at June 30^th 2003. Starting the new year, new agricultural lands will be entered into the register. To apply for single area payment during 2014, PRIA advises to register these by April 1^st already.

For the university student

Riigikogu has ratified amendments to Study Allowances and Study Loans Act, solving shortcomings in current act. Thus, when awarding needs-based support for students left without parental care, income of biological parents will no longer be regarded. A student’s family will include all sisters and brothers aged 24 and under, studying full load and within nominal tile limits in institutions of general education, vocational education or higher education.

Also: upper limit of income, as basis for applying for needs-based study allowances, will be €299 per family member (formerly €280) a month. From now on, applications may be filed during the entire semester, not only for a month as formerly.

For the traveller

Starting January 24^th, citizens of Estonia can travel to Thailand visa free, for purposes of tourism; continuous visa-free stay is allowed for 30 days.

For the banker

The so-called servers’ provision of Emergency Preparedness Act, supposedly curbing the interests of banks and telecommunications companies to move server parks from Estonia to Sweden and elsewhere. Pursuant to the provision, all vital services must function even when Estonia’s Internet connection with foreign countries is severed. The servers may indeed be located in foreign countries; even so, there needs to be an alternate system located in Estonia.

For the gas user

Since new year, a ban enters into force regarding filling of the old so-called red liquid gas cylinders. Only gas flasks corresponding to EU directives may now be filled, bearing the Pi-mark.

For the paid labourer

The new minimum wage is €355. Minimal hourly wage will be €2.13.

For animals

Starting January, nine Environmental Board employees were transferred to Environmental Agency (KAUR), the latter now responsible for state supervision of the wild.

For parents of infants

This year, parental benefit rate is €320 a month – this is paid to parents having no taxable income in previous calendar year. Upper limit to parental benefit, this year, is €2,378.25 a month.

An amendment to Parental Benefit Act will enter into force, regulating size of parental benefit in case the recipient of it is, at the same time, receiving income from work. In case the income exceeds benefit rate within a calendar month, the benefit will be reduced. The new benefit-cutting formula is simpler, more transparent and more favourable for the parent. Full benefit will be paid when income from work, during a calendar month, amount to the size of benefit, being €320.

For the pensioner

Additional basic exemption of pensions will increase by €216 a year i.e. by €18 a month thus amounting to a €210 rate a month. Thereby, pensioners are entitled to €354 a month of tax free income.

For those in need of urgent help

To 90 ambulance crews in service up to now, five ambulance-nurse crews were added. Ambulances will be sent forth from five new locations – in Tallinn, from Lasnamäe and Haabersti, from Türi, from Jüri, and from Annelinn, in Tartu.

For the unemployed

A new employment programme for 2014–2015 entered into force, among other things raising recompense rate for working premises and equipment adaption costs from 50 per cent to 75 per cent. Also, the circle of those appointed support persons will be enlarged, including long-term unemployed, and unemployed with addictions and special social needs. Volume of work with support persons will increase to 1,000 hours.

For the warrior

Riigikogu lengthened use of up to 170 peacekeepers in Afghanistan, within NATO international security assistance, from January 1^st to December 31^st 2014.  Estonian servicemen will leave Afghanistan by this autumn, due to expiry of helps mission.

For the pupil

By education ministry regulation regarding home study, children living abroad with their families may now be home-schooled.

For those interested in large numbers

Sate Budget Act 2014 entered into force, with €8.02bn planned as revenue and €8.06bn as costs. State costs will grow five per cent.

This year, pensions grow by about six per cent, the largest hike over past six years. National officials will get a raise. Tax burden will fall by 0.3 per cent to 32.1 per cent.

For the smoker/drinker

This year, tobacco excise rises by six per cent, alcohol excise goes up five per cent.

For the bank client

Estonia’s inhabitants, enterprises and institutions must, since February, be ready to use EU’s common payment conditions (SEPA). Bank account numbers will become longer, banks will employ e-invoice services. Enterprises and agencies must change the account numbers on their invoices and forms; the payment format sent to banks will change.

SEPA will harmonise rules all over Europe; in the future, people and companies should be able to do with a single payment account and bank card in their homeland, to make and collect payments and do business in the entire European Economic Area. For private persons, account numbers will change automatically.