Estonian Casino License (ETCB )

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Introduction to the Estonian Casino License (ETCB)

Estonian Casino License ETCB LogoAn agency run by the Ministry of Finance of the Republic of Estonia, the Estonian Tax and Customs Board, ETCB from this point is the taxation authority that oversees revenue collection for the budget of the state.

Overview

ETCB ensures a steady flow of taxes by implementing tax laws and custom rules. The agency also controls gambling and lottery companies by virtue of strict control over the related legislations and aspects such as licensing and policy enforcement. It carries out supervision and inspection as part of its function of enforcing the existing laws of the Republic that are applicable to the gambling industry just as it offers citizens and e-residents a dynamic platform to help them in fulfilling their tax liabilities and in maintaining the customs procedures. Employing over 1300 people with a magnificent female/male ratio of 70:30, the institution finds itself among the five most trustworthy institutions functioning in the country.

Goal

The ETCB’s declared goal is to create convenient and robust tax services with the aim of installing a safe economic environment that serves the interest of the people, their enterprises, and the state of Estonia. As a corollary to this, the agency also has the aim of making Estonia synonymous with the highest voluntary tax generator country in Europe. In order to achieve this vision, ETCB has put in place four strategic parameters that define the institution’s operations.

Strategic Parameters

The four directives that help in carrying out the entire range of operations that the agency undertakes are:

  • Boosting People’s Willingness to Pay Taxes by implementing a reliable relationship between the people and the institution whereby the latter can appear as a trustworthy partner to taxpayers.
  • Ensuring straightforward public services that are popular among people for the ease of navigability. A streamlined approach in this context offers a great deal of help to the general taxpayers as it does away with the unnecessary clunk that can potentially weigh down the system.
  • Ensuring equality in matters of tax payment by coming up with an efficiently structured surveillance system that makes tax evasion really difficult as it then makes such malpractices complicated and expensive.
  • Making the hallowed project of safeguarding the society a joint mission by working in collaboration with other organizations that bring to the table the same level of commitment and professional suave.

Taxes and Payment

• Income and Social Taxes

Natural persons incur Income tax as determined by their income from employment, transfer of property, business enterprise, and other sources. The ETCB taxes these with a 20% rate. Moreover, income that gets generated from employment and businesses is also subject to social taxes, and unemployment insurance premiums. In case a person is obligated, such income is also taxed with premiums of mandatory funded pensions.

Companies, non-profits, and foundations are defined as Legal persons by the law of the Republic of Estonia even when such entities do appear in public law and profit-making state agencies. These entities bear the liability of paying income tax at a rate of 20/80 on fringe benefits, gifts, donations, costs of entertaining guests, and unique to the income tax system of Estonia, on distributed profit (dividends) and payments from the equity capital. This is to ensure that dividends get reinvested in the company, rather than going into the private coffers of stakeholders. Although one must note that regularly paid dividends incur a reduced tax rate of 14/86.

Fringe benefits also attract social tax which is 33% or alternatively 13% in some cases.

• Value Added Tax

VAT is a state-imposed tax that is designed for persons who are registered as VAT liable. In Estonia that liability surfaces when one’s taxable supply exceeds £40,000 as calculated from the beginning of a year. An economic operator comes under the VAT with limited liability when his intra-Community acquisition of goods surpasses £10,000 as calculated from the beginning of a year. A parent undertaking with its subsidiaries also incurs VAT. One is also obligated to pay VAT if one accidentally adds VAT on issued invoices.

The related act in Estonia puts the rate at 20%, 9%, and 0% although the supply of goods and services that are of a social nature enjoys an exemption from VAT. The Estonian Value Added Tax system is not homogenous as it changes depending on whether the supplied goods are to be installed or assembled, whether the supplier is using new means of transport etc. Special VAT provisions are present with diplomats, foreign missions, international organizations, EU institutions, and armed forces of foreign states being the benefactors. The ETCB also has special schemes for the taxation of e-commerce and services.

Special arrangements are granted for immovable items, scrap metal, precious metal, and metal products, and second-hand goods are also granted under this system.

• Excise Duties

The Alcohol, Tobacco, Fuel, and Electricity Excise Duty Act make it possible to impose a duty on these items. Packages that are placed in the Estonian market or that are acquired in any other member state of the EU and are imported to Estonia also come into the orbit of this act. For taxation of packaging, The Packaging Excise Duty Act functions separately.

• Other Taxes and Claims

The tax system in the Republic of Estonia is bifurcated into state and local taxes. The former is taken care of by The Estonian Tax and Customs Board and the latter by local governments on the basis of administrative contracts which can then be collected by The Estonian Tax and Customs Board.

The said board also collects many other charges, tolls, and claims such as Land tax which is imposed by the Land Tax Act on all land in Estonia save lands that prohibit economic activities, and Road Toll which applies to all heavy goods vehicles weighing over 3.5 tonnes that make use of the public road network, Environmental Charges that are imposed on persons that have legally been allowed to dislocate natural resources from their natural state, to emit pollutants or to do away with waste. The charges also apply to entities that do all these things illegitimately.

Lastly, the ETCB collects gambling tax too which is designed for companies that are in possession of an activity license or operating permit to organize gambling.

Customs, Trade in Goods

• Customs Clearance

This section details the necessary information required for hassle-free customs clearance including information on authorities that are tasked with customs clearance at border crossing points, the technicalities involved in determining the customs status of goods, the procedures necessary for acquiring the unique EORI number, the Economic Operators and Registration Identification number which is mandatory for customs clearance, and on customs agencies acting as representatives of economic operators in matters involving customs clearance.

The section also gathers details on providers of surety and the specifics of providing security that is deemed acceptable by the Estonian Tax and Customs Board. Moreover, to help operators that are facing business downturns with the deferment of taxes, information is included on the exact warehouses which offer such help on the condition that goods are placed at those sites. Clients can use this segment to know more about the electronic border queue reservation system for motor vehicles at border crossing points just as they get their hands on customs declaration forms and relevant guidelines on how to fill them up.

Particularly noteworthy is the fact that it is obligatory for people to notify the customs department if they are carrying £10,000 while entering or leaving the EU. Particular attention must also be paid to two more developments, Brexit which made a trade in goods with the UK subject to customs formalities from 1st January 2021, and the COVID-19 pandemic which installed temporary changes in the operations and made special recommendations for consignees and consignors.

• Transport of Goods

The ETCB sticks to the general rules and procedures that are provisioned by the Union Customs Code and different other customs legislations while dealing with goods that are making inroads into the EU jurisdiction or are going out of it. In light of this, goods that are coming into the EU without paying any duties to the EU are subject to customs clearance. Such non-Union goods, no matter whether they are meant for the Union market or for personal consumption, must undergo customs clearance to enjoy free circulation. ETCB also has a progressive inward and outward processing mechanism with the former enabling the duty-free processing of non-Union goods and the latter offering partial or total relief from customs duties to goods that are re-imported.

e-MTA

The e-MTA is the e-service ecosystem of the ETCB that lets users access its e-services. The platform is used in accordance with regulation no. 15 of the Minister of Finance of 14 March 2019 and the procedures established by that.

• Introduction to e-MTA

The platform can be used both by private persons or legal persons and their legal representatives. The changes in the operation of the e-MTA that this status change entails can be accessed under Settings – Information about the use of the e-MTA portal. Upon signing in, users are presented with a dashboard containing an overview of their or represented persons’ tax and customs information and liabilities. Users also get the opportunity to design their own dashboards.

• Authentication Method

Signing in to the e-MTA requires any of these authentication methods: ID-card, Mobile-ID, Smart-ID, Bank link (Swedbank, SEB, LHV, Coop Pank, and Luminor), EU e-ID.

• User Account

Automatically created, the user account is based on the Estonian personal identification code that every person carries. For people who don’t possess that, the account can nonetheless be created first by running an authentication check in the e-MTA portal.

• Access Permission

Users must have access permits issued by the ETCB in order to use the e-services offered by this platform. In the case of legal representatives of legal persons, this is granted on the basis of data housed in the commercial register whereas other representatives undergo an authorization process to obtain the Access Permission.

• Security

The ETCB is stringent in ensuring that its e-services environment remains secure for the countless users entrusting it with their sensitive data. As part of this, ETCB secures the connection between the e-Tax Board or e-Customs and the user computer by the advanced SSL protocol and runs scheduled maintenance of the portal. However, the agency also lays down the fact that users must also maintain some standard procedures on their end to prevent data loss. Users, therefore, are advised not to log in to their e-MTA account from a public computer if not absolutely necessary, to check whether the web address starts with https:// and whether the connection established is safe, to Exit the portal before closing the browser window, to use the latest browser versions and to update their operating systems on a regular basis. They are further encouraged to make sure their personal security elements are safeguarded at all times.

Using firewalls, password protection, and denying browsers from saving encrypted pages or passwords are some more measures that users must always pay heed to. Using the Technical Support section, users may also find solutions to technical woes while using e-MTA.

• X-tee Services

Special thought has been given to legal persons that are availing of the e-MTA environment. The exchange of data in this case takes place via a machine-to-machine interface and uses a specially designed X-tee data exchange layer which users can opt for by registering through the X-tee Self-Service Portal. Following this, ETCB takes up the task of opening the X-tee service to the subsystem of the said organization.

Conclusion to the Estonian Casino License

In addition to the services mentioned above, ETCB has some more things up its sleeves. For example, it has an efficient tax behavior rating mechanism in place which helps entrepreneurs with keeping their operations in order before it all goes haywire. Its Public and Private sector databases come in handy while checking on the background of entities before deciding on a prospective partnership with them. It also has certain mandates in place to see to it that labor taxes are paid in the correct manner. Its Employment Register meticulously collects information on employment on the basis of which social guarantees are determined. For the benefit of the Estonian society, it has a functioning fraud hotline using which anybody can report irregularities of the sorts which fall into the ambit of ETCB.

Estonian Casino License FAQ

The ETCB is the Estonian Tax and Customs Board. Among other things, the regulate online gambling in Estonia.

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