Accountants launch warning strike over Estonia’s new tax filing system

Estonian accountants have called a two-day warning strike on November 10 and 11 over a new system for filing payroll tax returns, ERR reported. They say the system is creating extra work and uncertainty about the accuracy of tax calculations.

The Estonian Tax and Customs Board moved to a data-based income and social tax return system, known as TSD, in October. The board said the change would let businesses submit, correct and confirm payroll data through their accounting software instead of using its e-MTA online service. About 105,000 companies are required to submit the data.

Accountants taking part in the strike will withhold the returns but will tell businesses how much tax they owe. The Estonian Accountants Association has called on the board to work with accountants and software developers to find quick, effective solutions to problems with the new system.

Association chair Margus Tammeraja said the return now requires the date of each payment to be recorded. Previously, businesses could submit information for a whole month without entering payment dates. Microbusiness owners may therefore need to check bank statements, while accounting firms serving dozens of small businesses must submit payment-based entries individually, potentially after every payment.

Tammeraja said the process is particularly difficult for accountants when payroll software is not connected to the new filing system or payroll records are not updated daily. The board has told him it is working on technical issues, and he hopes the fixes will be in place by the next filing deadline.

The board said nearly 41,000 income and social tax returns had been submitted ahead of the November 10 deadline, with 20 percent sent through accounting software. That is nearly three times the number of businesses that used earlier automated solutions. By the morning of November 10, more than 80 percent of employers that usually file TSD returns had submitted October payroll data.