Estonia - Immovables Expropriation Act and Income Tax Act Amended
- Estonia
- 05/04/2009
- Raidla Lejins & Norcous
On 26 February 2009, the Riigikogu adopted the Act Amending the Income Tax Act and the Immovables Expropriation Act. The amendments elaborate provisions concerning expropriation in order to motivate the owners of immovables to enter into agreements with the state or local government for transferring immovables by the release of the owners from the obligation to pay income tax. As a result, there should to be fewer cases of expropriation proceedings due to the fact that the owner refuses to give his or her consent to the transfer. Other amendments in the Income Tax Act set out in greater detail provisions concerning exempt compensation for official travel expenses and expenses related to the use of a personal automobile paid to a public servant, an employee or a member of the management or controlling body of a legal person. The relevant exempt limit rates are now transferred from secondary legislation established by the Government regulation to law. The amendments shall enter into force on 1 July 2009.
