LHV Pank lets you automatically submit investment tax information also when using regular account


From March, LHV clients who use their regular account for investing, i.e., who earn income from securities outside the investment account system, will be able to submit the information required for declaring investments to the Estonian Tax and Customs Board automatically.

According to Annika Goroško, Head of Retail Banking at LHV, the new solution will allow investors to submit data on securities and crypto assets sold in 2023, as well as dividends and interest received, to e-MTA with a single click.

To declare the investment income of a regular account, you must use the LHV Tax Report under the menu item ASSETS AND LIABILITIES in the LHV Internet Bank.

To enter the data sent from the Internet Bank to the tax return, you only need to click ‘ETCB data’ → ‘Replace data’ → ‘Confirm’ under every table of the return you are filling in. Data from the Tax Report are transferred to the following tables of the income tax return:

  • Interest earned on deposits and bonds is entered into table ‘5.1 Salary and other remuneration’.
  • Sales of securities issued by Estonian enterprises are entered into table ‘6.1 Transfer of securities’.
  • Profitable sales of crypto assets are entered into table ‘6.3 Transfer of other property’.
  • Interest received from abroad and gross foreign dividends received are entered into table ‘8.1 Salary and other remuneration’.
  • Sales of foreign securities are entered into table ‘8.2 Transfer of securities’.
  • Dividends received from foreign shares on which income tax was withheld at the time of payment are entered into table ‘8.8 Income received in a foreign country and exempt from tax in Estonia’.

‘The Tax Report automation was completed as a result of cooperation between LHV and the Estonian Tax and Customs Board. LHV is the first bank in Estonia to offer this service. We hope that the solution simplifying the filing of a tax return will make it even easier for Estonian residents to start investing,’ said Annika Goroško, Head of Retail Banking at LHV.

The Tax Report solution is topical for those who invest in non-financial assets – non-marketable securities and crypto assets – and those who have acquired financial assets, such as shares, outside the investment account system. In this case, the income must be declared on a cash basis, i.e., in the year the investments are sold and the income is generated.

Users of the investment account system will also benefit from the automation of the Tax Report: from now on, LHV will automatically accompany each investment account report sent to the e-MTA with data on dividends and interest received from abroad into the investment account and taxed with income tax (tables 8.1 and 8.8), which previously had to be entered manually into the return.

If you are engaged in investing, there are two options: to use the standard system, under which all securities transactions have to be declared, or use the investment account system that is more useful to the investor, under which only monetary contributions and disbursements from the account have to be declared. Income earned on the investment account is income tax-free until the moment of withdrawal. This means that an investor can defer paying income tax on current profits, reinvest this money, and pay the income tax only when they withdraw money from the account.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,080 people. As at the end of January, LHV’s banking services are being used by 421,000 clients, the pension funds managed by LHV have 121,000 active clients, and LHV Kindlustus protects a total of 163,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

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