Interest payable to taxable person

(1) If on the basis of the administrative act issued by the tax authority an amount of tax has been collected from a taxable person or an amount of tax has been set off against a claim for refund submitted by a taxable person and the amount of tax exceeds the amount of tax due according to an Act concerning a tax, the tax authority is required to calculate interest on the overpaid amount for the benefit of the taxable person. Interest shall be calculated as of the date of set-off or payment until the amendment or repeal of the administrative act which was the basis for the payment. Interest shall not be calculated if the tax authority has issued the administrative act on the basis of the information declared by the taxable person.

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

(2) If a tax authority fails to fulfil a claim for refund (§ 33) within the term prescribed by law, the tax authority is required to calculate interest on the amount outstanding by the due date. Interest shall be calculated as of the day on which the overpaid amount was to be refunded until the date of payment or set-off of the amount, inclusive of the latter.

(3) If a tax authority has, pursuant to the provisions of subsection 107 (3) of this Act, set a term for a taxable person to submit additional documents, interest shall not be calculated for the benefit of the taxable person as of the date of delivery of a corresponding decision until the date of submission of the additional documents.

(4) A taxable person may apply for the payment of interest specified in subsections (1) and (2) of this section within two years as of:

1) the date of entry into force of a decision to amend or repeal a notice of assessment or a decision to refuse to fulfil a claim for refund;

2) the entry into force of a judgment of acquittal regarding a misdemeanour which caused a claim for refund to be suspended or a judgment of acquittal in a criminal matter regarding such a claim, or as of the date on which a ruling on terminating criminal proceedings regarding such a claim is made, or as of the date on which a judgment terminating misdemeanour proceedings regarding such a claim is made.

[RT I 2003, 71, 472 - entry into force 01.01.2004]

(5) A tax authority is required to pay interest within fifteen days as of the date of receipt of an application specified in subsection (4) of this section. A reasoned written decision shall be made upon refusal to pay interest.

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

(6) If a taxable person has not applied for the refund of the amount paid to the tax authority without basis and the interest calculated on such amount to his or her bank account before the amendment or repeal of the administrative act which was the basis for the payment, the overpaid amount shall be deemed to be payment within the meaning of subsection 105 (2).

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