Interest payable by taxable person

(1) If a taxable person fails to pay tax by the due date prescribed by law, the taxable person is required to calculate and pay interest on the amount of tax outstanding by the due date. Interest shall be calculated as of the day following the day on which payment of the tax was due pursuant to law until the date of payment or set-off, inclusive of the latter.

(1¹) Upon provision of international professional assistance interest on the amount payable in a foreign state shall be calculated from the day following the day when the tax authority received from a competent authority of a foreign state a request for recovery until the day of payment of the tax, the latter included.

[RT I, 13.12.2011, 1 - entry into force 01.01.2012]

(2) If, on the request of a taxable person, an amount of tax is refunded to the taxable person or is transferred to cover other tax liabilities of the taxable person and if such amount of tax is greater than that due to be refunded or transferred pursuant to an Act concerning a tax, the taxable person is required to calculate and pay interest on the amount refunded to the taxable person or transferred to cover other liabilities without basis. Interest shall be calculated as of the day on which the amount was refunded to the taxable person or transferred to cover other tax liabilities until the date of payment or set-off of the amount, inclusive of the latter.

(3) If a taxable person fails to pay interest pursuant to the provisions of subsections (1) and (2) of this section, the tax authority shall issue a claim for interest stating the number of days delayed, the interest rate, the amount of interest payable and the term for payment. The term shall not be shorter than ten days. The provisions concerning notices of assessment (§ 95) apply to claims for interest.

[RT I 2008, 60, 331 - entry into force 01.01.2009]

(4) A claim for interest may be issued in a notice of assessment, a liability decision, a decision concerning fulfilment of a claim for refund or a warning simultaneously with the assessment or collection of an amount of tax. If tax arrears are collected by way of compulsory execution, interest shall be calculated by the tax authority or bailiff conducting the enforcement proceedings. If interest is paid by way of set-off of a claim for refund or in the course of enforcement proceedings, the term for payment of a claim for interest provided in subsection (3) of this section and the minimum rate specified in subsection 119 (3) of this Act shall not apply thereto and payment shall take place on a continuous basis.

[RT I, 10.12.2010, 4 - entry into force 01.01.2011]

(5) The provisions of subsection (1) of this section also apply if the taxable person fails to make advance payments by the due date prescribed by law.

(6) Interest is received by the state.

[RT I 2008, 58, 323- entry into force 01.01.2009]