Estonian electronic tax filing system (E-Tax)
E-Tax is a system, that allows users to do their tax return in less than 5 minutes. Using a secure ID, a taxpayer logs onto the system, reviews their data in pre-filled forms, makes any necessary changes, and approves the document with a digital signature.
@Photo from Pixabay.
Summary
Using a secure ID, a taxpayer logs onto the system, reviews their data in pre-filled forms, makes any necessary changes, and approves the document with a digital signature. The process typically takes three to five minutes. One-click tax returns are also available, all known data is displayed to the citizen together with the calculated result, then all they have to do is click on the confirmation button; all this takes less than a minute.
| URL | Tax and Customs Board |
|---|---|
| Focus | Citizens Business |
| Start date | 1 Jan 2002 |
| Domain | Taxation |
| Scope | National/Federal |
| Country | Estonia |
| Nature and status of project | Rolled Out |
| Is the OOP case/enabler mandatory? | Opt-in |
Enabling assets or components
Relevant Enablers
Estonian data exchange layer for information systems (X-Road)
Estonian Public Key Infrastructure
Estonian Catalogue of Public Sector Information (RIHA)
Estonian three-level IT baseline security system ISKE
Political commitment
Interoperability of the State Information System. Endorsed with the Directive of the Minister of Economic Affairs and Communications 11-0377, 22.12.2011, https://www.mkm.ee/sites/default/files/interoperability-framework_2011.doc
Legal interoperability
Taxation Act. Riigikogu, RT I 2002, 26, 50, https://www.riigiteataja.ee/en/eli/502012017008/consolide
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"Tax registry" Establishment and Maintenance of the Register. Riigikogu, RT I,
26.05.2005, 11, https://www.riigiteataja.ee/akt/186654?leiaKehtiv
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Personal Data Protection Act. Riigikogu, RT I 2007, 24, 127, https://www.riigiteataja.ee/en/eli/507032016001/consolide
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Public Information Act. Riigikogu, RT I 2000, 92, 597, https://www.riigiteataja.ee/en/eli/518012016001/consolide
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The classification system. Vabariigi Valitsus, RT I 2008, 4, 27, https://www.riigiteataja.ee/akt/12910889
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The system of address details. Vabariigi Valitsus, RT I 13.10.2015, 2, https://www.riigiteataja.ee/akt/113102015002
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The data exchange layer of information system. Vabariigi Valitsus, RT I 27.09.2016,
4, https://www.riigiteataja.ee/akt/127092016004
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The administration system of state information system. Vabariigi Valitsus, RT I
29.03.2016, 6, https://www.riigiteataja.ee/akt/129032016006
Socio-cultural influence factors
All registers must linked by use commonly accepted keys:
• personal code for citizens,
• code of institution,
• standardised address presentation.
Secure data exchange layer X-Road (https://www.ria.ee/en/x-road.html) used for gathering data from different registers. X-Road is a technological and organizational environment enabling a secure Internet-based data exchange between information systems. All registers and Statistics Estonia must be a member of X-Road
Information regarding the X-Road members and the services they provide is available via the Administration System for the State Information System (RIHA). RIHA (https://www.ria.ee/en/administration-system-of-the-state-information-system.html ) serves as a catalogue for the state’s information system. At the same time RIHA is a procedural and administrative environment via which the comprehensive and balanced development of the state’s information system has ensured. RIHA guarantees the transparency of the administration of the state’s information system and helps to plan the state’s information management.
PKI or the public key infrastructure (https://www.ria.ee/en/public-key-infrastructure.html ) enables secure digital authentication and signing. The infrastructure also allows forwarding data by using an encrypting key pair: a public encryption key and a private decryption key. In Estonia, this technology is used in relation with electronic identity (ID card, mobile ID, digital ID). All members of X-Road are using Digital seal certificates for signing messages. Citizens and officials are using electronic identity tokens.
All participants must be implemented three-level IT baseline security system ISKE (https://www.ria.ee/en/iske-en.html). The goal of implementing ISKE is to ensure a security level sufficient for the data processed in IT systems. The necessary security level achieved by implementing the standard organisational, infrastructural/physical and technical security measures.
Data guidelines of Estonian Data Protection Inspectorate (http://www.aki.ee/et/juhised) must followed.
Benefits
Transparent and efficient tax collection.
Citizens save time: no need to go the tax office; no need to submit documents; 95 declaration are submitted online; citizens spend an average 7 minutes for submitting online declaration; one-click declaration available from 2015; no need for traditional post services.
Taxpayers receive refunds in five days
Lover administrative cost for tax board: the number of employees decrees 36,7% (2003-2012); lower expenditure for offices; decrease in the number of tax office visitors.
Higher quality of declarations; reduction of errors
Satisfaction of end users
X-Road services (56) are open for public sector institutions (including local government), for citizens, for business, for self-employed
Data handling / data exchange
Type of data sharing
Actual data
Data handler
| Stakeholder name | Stakeholder type |
|---|---|
The Estonian Tax and Customs Board | Government |
| Citizens | Citizen |
| Business | Business |
| Self-employed | Business |
| Internal users of Tax and Custom Board | Government |
| External users over X-Road | |
| Population register (RR) (Ministry of the Interior) | Government |
| Commercial register (ARIREG) (Ministry of Finance) | Government |
| Excise goods Customs Surveillance Information System (JVIS) | Government |
| System of detention orders transmission (e-arest) | Government |
| The system of electronic standard forms (AITA) | Government |
| The reporting system of electronic gaming (EHMA), electronic gaming reporting (EHMA | Government |
| Information system (MOSS) | Government |
| Foreign Account tax Compliance Act application (FATCA) | Government |
| The list of persons of gaming restrictions (HAMPI) | Government |
| The register of declarations of interests (HDR) | Government |
| The Control system of import(ICS) | Government |
| Register of Employment (TÖR) (Ministry of Finance) | Government |
| The VAT return (KMD) subsystem | Government |
| The system of permits (LUBA) | Government |
| Land Tax Information system (MAKIS) | Government |
| Information system of fiscal stamps (MAIS) | Government |
| Non-residents register (MRR) | Government |
Architecture
Register consists 36 subsystems, 45 services
Lessons learned
Enablers
Enabler 1. Legal and organizational interoperability: legislation approved by stakeholders; government solutions pass interoperability assessment process.
Enabler 2. Secure data exchange layer for confidential and legally binding data needed. In case of Estonia the X-Road is used
Enabler 3. The unique personal identification code provide opportunity to merge personal data from different registers.
Enabler 4. The unique company commercial registry code provide opportunity to merge business data from different registers.
Enabler 5. Master data in registers must described in catalogue RIHA properly.
Enabler 6. Agreements about semantic interoperability needed: 14 standardised code lists
Barriers
Barrier 1. Legal interoperability: some paper based requirements
Barrier 2. High development costs
Barrier 3. Organisational interoperability. High number of connected systems requires interoperability agreements between stakeholders.
Source: https://scoop4c.eu/cases/estonian-electronic-tax-filing-system-e-tax
Disclaimer: Please note that this article is a result of the SCOOP4C Pilot Project, not an application of a CEF Building Block.