The bill clarifies the rights of the Tax and Customs Board and the Money Laundering Data Bureau to receive the data necessary to check taxes and perform the tasks of preventing money laundering, especially regarding bank accounts and account data. An important change is that the law explicitly stipulates the right of the MTA to demand information from credit institutions in tax proceedings, and this right also includes bank secrecy. At the same time, it is specified which data the MTA can ask for through the information exchange channel of the execution register.
The bill is related to the 2026 State Budget Act. The bill amends the State Budget Act and the State Budget Act Amendment Act. The bill implements the updated framework of fiscal supervision of the European Union, specifies the role and tasks of the Budget Council, and updates the requirements of the domestic budget rule.
According to the draft, labor costs, management costs, social grants, investment grants, other grants, financial costs and other costs, including depreciation costs, must be listed separately for each state budget program. The same breakdown of costs is also established for the budgets of constitutional institutions. In addition, we would like to stipulate in the law that subsidies to legal entities of the central government and also to other legal entities are divided in the state budget separately for each legal entity, which allows you to identify exactly how much support is allocated to one or another legal entity from the state budget. The bill provides for revoking the minister's right to change the allocation of funds in the state budget with a limit determined by the state budget and to give the corresponding right only to the Government of the Republic as a collective body
The credit information register will gather information about all of a person's financial obligations, be it home or consumer loans, car leasing, installment payments, as well as quick loans.
In the future, all lenders under the supervision of the Financial Supervision Authority must submit information about the loans taken by each person to the register. Before granting a new loan, they must check what liabilities the person already has.
Consolidation of such information into one central register gives a clearer picture of a person's actual ability to pay and prevents people from over-borrowing.
According to the bill, the originally planned security tax will be abolished until 2028, including both the corporate profit tax and the taxation of natural persons from the first euro.
The change is based on the goal of ensuring a stable financing of the state's defense costs, for which the general income tax rate will be raised to 24% and the business income tax rate to 22% from 2026 to strengthen the defense capability in the long term. The VAT rate increase will remain in effect until 2025. from July to 24%, which becomes indefinite.
In corporate income tax, a simple, uniform and more business-friendly solution will be brought back, where companies pay income tax only on distributed profits, not on current profits. This boosts both entrepreneurship and economic growth.
This bill makes changes to the Money Laundering and Terrorist Financing Prevention Act, which are related to the addition and differentiation of data processing functions of the Money Laundering Data Office (hereinafter RAB). The bill primarily concerns how, for what purpose and what personal data is processed.
The explanatory letter states that considering the current situation of the Estonian economy, which is characterized by a deep recession and its continuation, the introduction of the security tax has been socially unfair and a disproportionate burden on the most vulnerable groups of society.
The purpose of the bill is to increase the transparency and comprehensibility of the annual state budget and the role of the Riigikogu in the processing of the state budget.
The purpose of the bill is to increase the transparency and comprehensibility of the state budget, which also gives the parliament a greater role in the process of the state budget.
The draft improves the transparency of the state budget by amending the State Budget Act in such a way as to ensure a complete transition to a cost-based or input-based budget, the activity- and result-based output of costs would remain only in the appendix of the explanatory letter. This draft means that the presented annual budget must show all the revenues and expenses of the state according to their economic content and by institutions.
The bill is related to the 2025 State Budget Act.
The division of the economic content of expenses by institutions, which was previously presented in the explanatory letter to the state budget, is added to the activity-based distribution. The change does not affect the limits established by the state budget and the flexibility of using the state budget, which is set for the costs of program activities and the total amount of expenses of the constitutional institution. As a result of the change, the transparency of the state budget will increase for the public.
Until the end of 2028, a security tax will be established to obtain funds for the development of Estonia's defense capabilities and security investments.
The security tax consists of three parts: 2% of turnover from July 1, 2025; 2% of the income of natural persons from January 1, 2026; 2% of company profits from January 1, 2026.
The purpose of the bill is to reduce the risk of interruption of business operations and important services in the financial sector, as well as the threat to the company's and customers' information and financial assets, which can be caused by cyber attacks, technical failures, and other operational errors. At the same time, in the event of attacks and disruptions, the company should have an action plan to ensure that services can be quickly resumed. Mitigation of such risks ensures better data protection, customers trust and business continuity. The draft ensures consistency between the law regulating the activities of the domestic financial sector and the European Union's digital operational efficiency requirements applicable to financial institutions.
According to the draft, both cryptoasset service providers and issuers of cryptoassets, which are issuers of asset-based tokens, issuers of e-money tokens (issuers of so-called stablecoins) and issuers of other cryptoassets (participants of the cryptoasset market), will be brought under the supervision of the Financial Supervision Authority.
The bill proposes to support the fund created by the European Investment Bank (EIB) to support Ukraine (EU4U) with a state guarantee of 10 million euros.
Providing a guarantee instead of a grant allows spreading costs into the future, while standing in solidarity with other countries in supporting Ukraine. The size of the guarantee is in the same order of magnitude as the planned participation of Latvia and Lithuania in the EU4U fund.
In cooperation with other EU member states, Estonia contributes to Ukraine restoring macroeconomic stability and strengthening the country's immediate resilience and recovery capacity. This will help ensure the sustainability of Ukraine's government debt and the country's ability to meet its financial obligations. Acting through the EIB is more efficient in order to achieve a sufficiently large impact and effectiveness of the aid, and it also helps to avoid increasing the administrative burden on the Ukrainian authorities.
European Union budget guarantees, which also EIB activities in Ukraine has previously been supported will be exhausted by 2023. With the money collected from the created fund, the EIB can continue its activities in Ukraine, which is currently not possible for the EIB to do on its own. EU member states, the European Commission, interested countries and partners can contribute to the fund. In addition to the loan resource, the fund has planned 100 million euros for activities related to technical assistance.
The aim of the draft is greater flexibility in planning the state's finances. The bill changes the government sector balance rules that form the basis of the preparation of the state budget. As a result of the change, Estonia's domestic budget rules will be brought into line with the limits allowed by EU law and international agreements, abolishing the stricter requirements that have been in force until now, which have proven to be too restrictive in budget planning, especially for major economic crises and the exit from them. in context. EU law and international agreements enable a more flexible approach to state budget planning in difficult economic conditions.
With the decision to cover the interest costs of the Ukrainian loan, Estonia undertakes to pay the interest payments of the loan granted by the European Union to Ukraine to the budget of the European Union in the years 2024-2027 in the maximum amount of 5,890,628 euros. The relevant EU regulation created a financial instrument to support Ukraine in 2023 (MFA+). In order to make the loans more affordable for Ukraine, the EU member states decided to cover the interest costs of the loans until 2027 by paying them as earmarked revenue to the EU budget. For this purpose, a separate agreement is concluded with each member state, where the member states participate according to their share in the total national income of the EU. The payment of interest payments by the member states allows Ukraine to reduce the burden on the state budget in difficult times, giving an opportunity to support the country's economy.
With the decision, the Riigikogu gives its consent to increase the participation of the Republic of Estonia in the Council of Europe Development Bank (hereinafter CEB) by 9,872,000 euros, of which 2,787,853 euros must be paid in and the required capital is 7,084,147 euros.
The purpose of the bill is to eliminate costly and ineffective tax incentives, increase and
harmonize the income tax rate and replace regressive tax-free income with uniform tax-free income
with revenue based on the coalition agreement.
The bill provides for a state guarantee to the European Commission in the amount of 7,402,387 euros. After the approval of the decision, a guarantee agreement is signed between the commission and Estonia.
The implementation of the decision does not entail any direct obligations for Estonia.
In the form of the bill, it is a new comprehensive law that provides requirements for major payment systems. The current law is insufficient today, and the provisions are scattered in various legal acts. The bill defines important terms for the payment market and provides for the rules of the settlement system, the rights and obligations of the system organizer and the system participant. It is foreseen how things will happen in systemically important payment systems and securities settlement systems execution of payment orders, including if a party becomes insolvent or goes bankrupt.
With the draft, the government is proposed to develop a way of financing the construction of Tallinna Hospital, which has already been committed, to acquire essential medical helicopters and to build the section of the Rohuküla railway between Turba and Risti.
Eelnõuga võetakse üle Euroopa Liidu nõukogu direktiiv liikmesriikide vahel tulu või kapitali topeltmaksustamist kõrvaldavate välislepingute kohaldamisel tekkinud vaidluste lahendamise kohta, mis kohaldub maksulepinguga hõlmatud tulu- ja kapitalimaksudele.
Eelnõu näeb ette nimetada Põhjamaade Investeerimispanga kontrollkomiteesse Eesti esindajaks 2019. aasta 1. juunist kuni 2020. aasta 31. maini Aivar Kokk.