{"id":34932,"date":"2022-12-06T14:32:46","date_gmt":"2022-12-06T11:32:46","guid":{"rendered":"https:\/\/astrobaltics.eu\/?p=34932"},"modified":"2024-10-25T11:18:39","modified_gmt":"2024-10-25T08:18:39","slug":"change-in-basic-exemption-at-retirement-age","status":"publish","type":"post","link":"https:\/\/astrobaltics.eu\/en\/change-in-basic-exemption-at-retirement-age\/","title":{"rendered":"Change in basic exemption at retirement age"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#eeeeee\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1098\" height=\"600\" src=\"https:\/\/astrobaltics.eu\/wp-content\/uploads\/2022\/12\/Cloudicsi-mobiilse-makselahenduse-kasulikkus-ettevottele.png\" alt=\"Muudatus: maksuvaba tulu vanaduspensionieas\" class=\"wp-image-34917\"\/><\/figure>\n<\/div><\/div>\n\n\n\n<h2 class=\"has-text-align-left druk wp-block-heading\">Change in basic exemption at retirement age<\/h2>\n\n\n<div class=\"post_date\">Postitatud: 2022-12-06 14:32:46<\/div>\n\n\n\n<p>From 1 January 2023, a separate basic exemption will apply to people who have reached retirement age, meaning that the average pension is exempt from income tax.<\/p>\n\n\n\n<!--more Loe rohkem-->\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The purpose of the deduction of the general basic exemption is to ensure minimum means of subsistence<br>exempt from income tax to people<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>From 1 January 2023, the general basic exemption rate is 7,848 euros per year, i.e. 654 euros per month, but if the person\u2019s gross income exceeds 14,400 euros per year (1,200 euros per month), the basic exemption rate starts to decrease and reaches zero at the annual income of 25,200 euros (2,100 euros per month).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>From 1 January 2023, the amount of basic exemption for people of retirement age shall be<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>&#8211; equal to the amount of the average old-age pension per month, and<\/li><li>&#8211; equal to the amount of 12 times the amount of the average old-age pension per year.<\/li><\/ul>\n\n\n\n<p>The amount of the average old-age pension is established by the State Budget Act of the financial year.<\/p>\n\n\n\n<p>It is expected to be 704 euros per month and 8,448 euros per year in 2023.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Retirement age depends on the person\u2019s year of birth<\/h2>\n\n\n\n<p>If the person was born in:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>&#8211; 1958, their retirement age is 64 years and 3 months;<\/li><li>&#8211; 1959, it is 64 years and 6 months;<\/li><li>&#8211; 1960, it is 64 years and 9 months;<\/li><li>&#8211; 1961, it is 65 years.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Basic exemption for the whole year also applies if the person reaches retirement age during the year.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>The person was born in<\/strong><\/td><td><strong>The person reaches retirement age in<\/strong><\/td><td><strong>The person\u2019s basic exemption is to the extent of the average old-age pension from 1 January (704 euros)<\/strong><\/td><\/tr><tr><td>January to September 1958<\/td><td>Already at retirement age in 2023<\/td><td>In 2023<\/td><\/tr><tr><td>October, November, and December 1958 <br>January to June 1959<\/td><td>January, February, and March 2023<br>July to December 2023<\/td><td><br>In 2023<\/td><\/tr><tr><td>July to December 1959<br>January, February, March 1960<\/td><td>January to June 2024<br>October, November, December 2024<\/td><td><br>In 2024<\/td><\/tr><tr><td>April to December 1960<\/td><td>January to September 2025<\/td><td>In 2025<\/td><\/tr><tr><td>January to December 1961<\/td><td>January to December 2026<\/td><td>In 2026<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If you reach retirement age in 2023, your basic exemption is calculated to the extent of the average old-age pension from 1 January, and you will no longer be subject to the general basic exemption.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Basic exemption different from general basic exemption is tied only to you reaching retirement age and is not dependent on whether you are retired or working or&nbsp;<a href=\"https:\/\/sotsiaalkindlustusamet.ee\/en\/pension-benefits\/pension-types-pensions-and-benefits\" target=\"_blank\" rel=\"noreferrer noopener\">what type of pension<\/a>&nbsp;you receive.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>If you have a long enough pension qualifying period, you can use flexible old-age pension five years before reaching retirement age. In this case, you will be subject to a general basic exemption until the year you reach retirement age.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>You can also postpone receiving the pension. In this case, you can use the minimum amount exempt from income tax of 704 euros as you wish alongside other income, such as wages.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>If you receive an old-age pension under favourable conditions, you will be subject to a general basic exemption until the year you reach retirement age.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who is entitled to basic exemption at retirement age?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>&#8211; Estonian residents<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>&#8211; Residents of the European Economic Area (Member States of the European Union, Norway, Iceland, Liechtenstein) who receive income from Estonia<br><br>A resident of the European Economic Area must submit their certificate of residence for tax purposes to the Tax and Customs Board. A person is entitled to basic exemption only if they have a certificate. A non-resident pension recipient shall submit the certificate of residence for tax purposes to the Social Insurance Board.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Residents of third countries are not entitled to general basic exemption or basic exemption at retirement age.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Kolmandate riikide residentidel ei ole \u00f5igust \u00fcldisele maksuvabale tulule ja maksuvabale tulule vanaduspensionieas.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Frequently asked questions about the application of basic exemption at retirement age<\/strong> <strong>can be found on <a href=\"https:\/\/sotsiaalkindlustusamet.ee\/en\/basic-exemption-retirement-age\" target=\"_blank\" rel=\"noreferrer noopener\">Social Insurance Board homepage.<\/a><\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>If you have any further questions, don\u2019t hesitate to contact our customer support Mon-Fri 09.00-17.00.<\/p>\n\n\n\n<p><strong>Phone:<\/strong>&nbsp;+372 628 0000<br><strong>E-mail:<\/strong>&nbsp;info@astrobaltics.eu<\/p>\n\n\n\n<p><a href=\"https:\/\/astrobaltics.eu\/\">Astro B<\/a><a href=\"https:\/\/astrobaltics.eu\/\" target=\"_blank\" rel=\"noreferrer noopener\">altics<\/a><br>Guide to the future!<br><a href=\"http:\/\/www.astrobaltics.eu\/\" target=\"_blank\" rel=\"noreferrer noopener\">www.astrobaltics.eu<\/a><\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>From 1 January 2023, a separate basic exemption will apply to people who have reached retirement age, meaning that the average pension is exempt from income tax.<\/p>\n","protected":false},"author":8,"featured_media":34919,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[145,146,147],"class_list":["post-34932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-astro-baltics-en","tag-majandustarkvara-en","tag-noom-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Change in basic exemption at retirement age | Astro Baltics<\/title>\n<meta name=\"description\" content=\"From 1 January 2023, a separate basic exemption will apply to people who have reached retirement age, meaning that the average pension is exempt from income tax.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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