Effective 1 October 2026, the Tax and Customs Board (MTA) implemented a technical upgrade allowing employers and payroll providers to submit TSD (Taxation of Fringe Benefits) Appendices 1 and 2 directly from certified accounting software via the e-MTA API, eliminating manual data entry in the e-MTA portal. The change, announced under MTA Directive 1-4/2026, applies to monthly declarations of taxable benefits (company cars, housing, loans, etc.) and reduces average processing time per employee from 12 to 3 minutes. Over 85% of payroll software vendors (including Merit Palk, Directo, and 1C:ERP) have completed integration testing. The MTA estimates annual compliance cost savings of €4.2 million for Estonian businesses.
Key Takeaways
- API-First Filing: TSD appendices now flow automatically from payroll systems to MTA, reducing errors and manual labor.
- Mandatory Software Certification: Only MTA-approved software (list updated quarterly) can use the direct channel; non-certified tools still require portal entry.
- Phased Rollout: Voluntary adoption until 31 December 2026; mandatory for all employers with >50 employees from 1 January 2027.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement