Transfer pricing in Estonia at a glance
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline upon request||No shorter than 60 days|
|Annual update required||No|
|Official language requirements||Estonian (English generally accepted)|
|Potential impact of penalties||N/A|
Estonian tax law
Rules for transfer pricing in Estonia are based upon:
- Estonian Income Tax Act articles 8, 14, 50, 53
- Transfer pricing regulation of 10 November 2006 (no. 53)
Rules for transfer pricing in Estonia are based on the OECD Transfer Pricing Guidelines. However, national legislation prevails over the OECD Transfer Pricing Guidelines.
Accepted methods are:
- the comparable uncontrolled price method;
- the resale price method;
- the cost plus method;
- the profit split method;
- the transactional net margin method, and
- other methods that provide an arm’s length result.
Priority of methods
Rules for transfer pricing in Estonia do not provide for any specific transfer pricing method.
Information that should be included in the documentation:
- Company analysis;
- Industry analysis;
- Functional analysis, and
- Economic analysis.
Rules for transfer pricing in Estonia prescribe that documentations should be submitted in Estonian. However, generally documentation in English is also accepted.
Requirements to prepare documentation annually
Rules for transfer pricing in Estonia require that detailed transfer pricing documentation should be provided for every financial year.
Submission deadline upon request by tax authorities
Upon request, a taxpayer is given a period of time to submit the documentation. This period may not be shorter than sixty days.
Advanced Pricing Agreements
Rules for transfer pricing in Estonia do not provide for Advanced Pricing Agreement regulations.
Rules for transfer pricing in Estonia do not provide specific transfer pricing penalties.