• Investment account and income tax

Investment Account and income tax

In Estonia it is possible to open an Investment Account for private individuals for income tax benefits. A private individual who acquires the securities that are listed on Nasdaq main list or Nasdaq First North Baltic via his Investment Account shall not have to pay income tax on bond interest payments. For receiving the income tax benefit the investor must notify the issuer that the issuers bonds have been bought with an Investment Account. The investor becomes a subject to income tax once the cash outflows from the Investment Account exceed the cash inflows. Acquisition of securities or payments from issuers do not affect the accounted cash outflows/inflows of the Investment Account. The investor will be subject to income tax from the amount the cash payouts from the Investment Account exceed cash payments to the Investment Account.

More information about the Investment Account can be found here

The notification to the issuer about the investors Investment Account shall include a confirmation that the bonds were bought with cash on the Investment Account and an instruction to the issuer not to withhold income that from the interest payments to the investor. The notification must also include the Investors (or the receiver of the interest payment) full name, personal identification code, the investor’s securities account number and the Investment Account number.

Notification must be forwarded to the following address: info@unitedpartners.ee