New TSD from October 2026: what has changed for employers

Since 1 October 2026, employers in Estonia have been able to send salary data for the income and social tax declaration (TSD) directly from their accounting software to the Estonian Tax and Customs Board (EMTA). The new TSD system simplifies reporting, but requires compatible accounting software.

A technical error affecting second-pillar pension contributions was discovered in the system’s first days of operation. We explain what has changed, who may have been affected and what to check before the filing deadline on 10 November.

What has changed in the new TSD, and what remains the same

Previously, accountants completed Annexes 1 and 2 of the TSD in e-MTA or uploaded a prepared file. Compatible accounting software can now transmit the information to EMTA directly. As EMTA explains, the tax authority processes the data and sends the software feedback on errors and calculated taxes. The accountant reviews the result, corrects the information if necessary and confirms the declaration.

Another change is that data can be sent after each payment, without waiting for the end of the month. This helps identify discrepancies earlier.

Other changes:

• Annexes 1 and 2. In the new system, payment data are brought together in a single section.
• File format. Files are uploaded in the new XBRL GL format. The previous XML format is no longer accepted, while EMTA will continue to accept CSV files until the end of 2027.

What remains the same:

• Manual entry. The declaration can still be completed in e-MTA.
• Annexes 3–8. These remain unchanged for now. Their update is planned for 2028.
• Filing deadline. The declaration is due by the 10th day of the month following the month of payment. If that date falls on a weekend or public holiday, the deadline moves to the next working day. Payments made in October can already be declared using the new system. The deadline is 10 November 2026.

The deadline is based on the month of payment, not the month for which the salary was accrued. For example, a September salary paid in October is included in the declaration for October payments, due on 10 November.

The new TSD primarily changes how data are transmitted and processed. The employer remains responsible for calculating taxes correctly and submitting the declaration on time.

An error in the new TSD: what happened to second-pillar pension contributions

According to Raamatupidaja.ee’s report of 27 October 2026, the error may have affected payment data submitted on 5–7 October. A technical fault caused the system to incorrectly assign a second-pillar pension contribution obligation to some people.

EMTA reported that it had fixed the technical fault. However, fixing the system does not mean that all previously submitted data were correct.

Calculation example. An employee earns €2,000 before tax and does not participate in the second pension pillar. If the system incorrectly applies a 2% contribution, that amounts to €40. Income tax then decreases by €8.80, while the net amount shown in the tax data is €31.20 lower than the actual amount. In this example, the employee has submitted an application to the employer for a tax-free allowance of €700 per month.

This is a calculation example, not the data of a particular company.

An error in tax data is not necessarily an error in the salary paid. Incorrect information in the declaration does not automatically mean that the employee received the wrong amount in their bank account.

What employers should do before 10 November

1. Check second-pillar contributions

If your company submitted data to the new system on 5–7 October, compare the pension contributions with employee records and the payroll calculation.

If you find a discrepancy, ask EMTA or your accountant how to correct it. Do not resubmit all the information without checking it first: identify exactly which data are affected.

2. Check whether your software supports the new TSD

Find out whether your software has been updated and can transmit data directly to EMTA. The tax authority publishes a list of compatible software, or you can ask your software developer.

3. Check the file format

If you upload data in a file, make sure it is not in the previous XML format, which is no longer accepted. The new format is XBRL GL. CSV files can be uploaded until the end of 2027.

4. Review the tax authority’s responses

Sending data from the software does not remove the need to review the declaration. After submission, check error messages, calculated tax amounts and the declaration’s status.

5. Submit data immediately after payment

The new system accepts data after each payment. Submitting early leaves more time to correct discrepancies.

The new TSD and the accountant’s role

Direct transmission from accounting software reduces manual work, but does not replace accounting checks. The software sends the information and receives EMTA’s response. A specialist is still responsible for the accuracy of the initial calculations, checking discrepancies and meeting deadlines.

We have been providing accounting services for companies in Estonia since 1998. At Finance PRO, accountants prepare payroll and tax reports, and a second specialist checks their work. A coordinator monitors declaration deadlines.

If you have questions about the new TSD or would like to check data already submitted, contact Finance PRO. We will help you understand the situation and prepare reporting by the required deadline. The initial consultation is free.

Telephone: +372 5366 6674

Email: info@fpro.ee

Find out more about our services on the Finance PRO accounting services page.

Read also

• Income tax and tax reporting in Estonia
• What documents does an accountant need in Estonia?
• How to check an accountant in Estonia in 10 minutes

Information current as of 29 October 2026. This article is for information only and does not replace individual tax advice.