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Locations and opening hours of LHV ATMs can be found on our website and in our mobile app.

All ATMs listed on LHV's website are marked with a corresponding note.

Cash withdrawals

It is possible to withdraw up to 1000 € at a time.

The withdrawal sum also depends on the cash withdrawal limit set for the card. When the limit and balance are sufficient, and it is still not possible to withdraw the sum requested, the reason might be that there are not enough notes in the machine to withdraw the requested amount.

The limitations are imposed by the account owner and/or the user of the card (e.g. account balance or card withdrawal limit). In the case of large amounts there is also a service fee, which can be found in the applicable price list.

This can be a problem when the account owner and/or the user of the card has placed the respective restriction upon the card. To change the restriction, log in to the internet bank and choose “Everyday banking” ➞ “Bank cards”.

Cash deposits

It is possible to deposit up to 200 notes, and there is no limitation on the sum.

All euro notes can be deposited, i.e. 5, 10, 20, 50, 100, 200 and 500 euro notes.

No, it is only possible to deposit money into a bank account. Then, if you wish, you can transfer it from your bank account to your credit account.

Other atm operations

LHV’s ATMs can be used to change the PIN code for any LHV Pank bank card.

You can use the Car Loan for purchasing or repairing different vehicles. This includes passenger cars, motorbikes, ATV-s as well as watercraft.

The vehicle can be registered in your name right from the start.

A Car Loan is an unsecured small loan with more favourable conditions due to its intended use. If you have applied for a Car Loan, you will sign a small loan contract, which has already been prepared by using the Car Loan conditions.

As a private person, you can apply for a Car Loan if

  • your monthly income is at least 250 €
  • you are aged 18 to 75
  • you are a citizen of the Republic of Estonia, a citizen of the Russian Federation or holder of a grey passport, who holds a residence permit and resides in Estonia.

You do not have to have a bank account at LHV to be able to apply for a Car Loan.

You only need to submit your account statement if this is requested by LHV Finance customer support. When you submit a six month account statement, you yourself choose the appropriate format:

  • statement digitally certified by the bank (so-called digidoc format)
  • hard copy printout certified by the bank
  • statement printed out at an LHV Bank office

If your bank does not provide printouts in any other form, a PDF file will do as well.

E-mail the statement to finance@lhv.ee or drop it off at an LHV Bank office.

Once you have submitted the application, we will assign you a limit valid for 90 days. We shall send you an e-mail with the limit decision. Up to this limit, you can conclude one or several small loan contracts. You can conclude a contract conveniently without leaving home, through our self-service](/en/car-loan/application). If you are unable to sign a contract digitally, you can also conclude a contract at any Euronics shop.

We will forward the information about the amount of the first instalment and its due date to you by e-mail once a contract has been concluded. The amount of the instalment and the payment due date are also recorded on the payment schedule attached to your contract. Should you be unable to find the information you need, please call our customer support at 699 9119 or send an e-mail to finance@lhv.ee.

We will send you the invoice by e-mail or post every month, five days before the payment due date. If you have also requested an e-invoice, we will send it to the Internet bank of your choice.

Pay your instalments into the AS LHV Finance account EE707700771001062897. Indicate the number of your Car Loan contract as the reference number.

The most convenient way to make your monthly payments is to use the automatic e-invoice standing order service. You can conclude a standing order agreement via the Internet bank of the same bank where you would like to make your monthly payments.

You do not have to wait for an invoice to arrive to pay an instalment. If you have not received an invoice, look up the exact amount on the payment schedule of your contract. Transfer this amount into the AS LHV Finance account EE707700771001062897.

At the latest, the instalment must be received in the AS LHV Finance account on the payment due date set out in your contract. We therefore advise you to transfer payment before 16.00 on the business day preceding the payment due date, at the latest. This way, you can make sure that the payment will be received by us on time.

For your invoice to be paid automatically, conclude an e-invoice standing order agreement via the Internet bank of the bank where you would like to make your monthly payments. Going forward, you will no longer need to worry whether your invoice has been paid on time. It is important to just make sure that on the payment due date there are sufficient funds available in your bank account for paying the instalment.

Information that may be needed for requesting an e-invoice and concluding a standing order agreement:

  • Invoice issued by: AS LHV Finance
  • Account number: account from which you wish to make payments
  • Customer ID: agreement number
  • Expiry of order: leave this field blank
  • Invoice payment: select automatic payments
  • Standing order date: date of receipt of invoice
  • Limit: leave this field blank

Your Car Loan contract is easy to amend. All you have to do is e-mail your request to us at finance@lhv.ee. If needed, you can apply for a grace period or change the payment due date or the amount of the monthly instalment. It costs 25 € to amend your contract. This amount will be added to your next invoice. If you repay the entire car loan amount early, there will be no service charge.

There is no charge for repaying the entire Car Loan amount early. E-mail your request to us at finance@lhv.ee.

Information is available from our customer support by calling 699 9119 or e-mailing finance@lhv.ee. Customer support operates Mon–Fri 9–17.

General information

Since 2011, two parallel systems have existed in Estonia for the taxation of personal investment income:

  • the so-called ordinary system, according to which all transactions involving the sale of securities must be declared, and
  • the investment account system, according to which only the contributions to and disbursements from the account must be declared.

Securities income may also be declared according to both systems.

The ordinary system provides for the declaring of all securities transactions performed in the previous year. The income tax obligation arises once you have earned a profit as the end result of all sales transactions. However, if you have incurred a loss during the year, you can carry that forward to the following year. Service fees may be deducted from realised revenue under the ordinary system, but management fees may not be deducted.

Transactions must be entered in the income tax return by hand (see How is income declared in the ordinary system?). Optionally, the ‘Tax report’ statement available in LHV internet bank may be used for reference. It is there that we have consolidated all of the information known to LHV Pank regarding the gain or loss on the transfer of your Estonian and foreign securities, interest income from securities and foreign-sourced dividends. Declare these to the Tax and Customs Board using tables 5.1, 6.1, 7.1, 8.1, 8.2 and 8.8 of the income tax return.

When using the investment account system it is not the securities transactions that must be declared; instead, the contributions to and disbursements from the bank account marked as the investment account must be declared. An individual may have multiple investment accounts at several different banks simultaneously. A tax liability only arises if the amount by which the disbursements made from all of the investment accounts exceeds the balance of the contributions made to all of the investment accounts.

The tax report showing every contribution to and disbursement from your bank account can be forwarded automatically to the income tax return in the LHV internet bank, from the ‘Investment Account Report’ section.

The main differences between the ordinary system and the investment account system are presented in the following table.


Ordinary systemInvestment account system
Selection of assets to be declaredBroader selectionOnly financial assets
The following must be declaredsales transactions involving securities performed using overall income, as well as dividend and interest income. If, on the contrary, the consolidated result of the sale of securities over the course of the year is a loss, it is also prudent to include those sales transactions in your income tax return, as in that case you can carry forward the loss amount to subsequent yearscontributions to the investment account and disbursements from the investment account
A tax liability arises, ifoverall income, which exceeds the loss carried forward from previous years, has been obtained from transactionsthe sum of the disbursements exceeds the balance of the contributions made
Deduction of transaction feesPermittedPermitted if the fee has not been paid at the expense of the contribution (see Under what circumstances can I declare transaction fees as a contribution to the investment account)
Deduction of management feesNot permittedNot permitted

In addition to investing as an individual it is also possible to do so as an enterprise, in which case the taxation of the company’s income resembles the investment account system. However, there are also differences between investing via a private individual’s investment account and investing as an enterprise, the most important of which are related to data disclosure and the deduction of management fees. Read more about investing as an enterprise.

If there were no dividend payments or sales transactions in your Growth Account during the year,

  • you, as the user of an ordinary system, do not have to report any Growth Account investments at all;
  • when using the investment account system, you still have the obligation to report the contributions to and disbursements from the Growth Account, which you can automatically send to the Tax Board from LHV’s internet bank.

Sales transactions and dividends under the ordinary system
If you have received dividends in your Growth Account during the year, you will have to report these in Table 8.1 or Table 8.8 of your income tax return.
If you have also made some sales transactions in your Growth Account during the year, any disposal of fund units must be entered in Table 8.2 of the income tax return.
All necessary data for filling in the tax return can be found in internet bank under “Assets and Liabilities” → “Tax Report”.

Declaration of dividends in the investment account system
The first step is to inform the Tax Board that you are using your Growth Account in the investment account system. To do so, information regarding the bank account being used as the Growth Account must be entered in part I of Table 6.5 of your income tax return.
Only cash contributions and disbursements will be subject to reporting. Information on cash transfers can be found under the internet bank section “Assets and Liabilities” → “Investment Account Report”, which you can send automatically to the Tax Board by pressing the button at the bottom of the page. The forwarded information should be visible in part II of Table 6.5 in the income tax return.
If, during the year, you have received dividends in your Growth Account that are subject to taxation (an overview can be found in the internet bank under “Assets and Liabilities” → “Tax Report”, Table 8.8), you must report these receipts separately in Table 8.8 of the income tax return.

Income tax shall only be paid on deposit interest by those private individuals who are Estonian tax residents and who have not informed LHV Pank that their account, in which the interest is received, is an investment account.

You can inform LHV Pank about the investment account in the internet bank section “Information and Settings” → “Accounts and Limits” → “Accounts”. Select the account and save the selection. Later, you should also declare this account on your Tax and Customs Board income tax return as an investment account.

An Estonian tax resident is a person whose permanent residence is in Estonia or who has stayed in Estonia for at least 183 days in a year. You can check your tax residency in LHV internet bank (“Information and Settings” → “Data”).

You do not have to declare or pay the interest yourself. The bank shall withhold income tax and declare and pay it on your behalf. The data of the interest earned on bank deposits will be automatically shown on your pre-populated income tax return starting from 2019.

A client, whose deposit interest is subject to income tax, will from now on see two entries in their account statement: interest and income tax payment. Calculation of income tax follows the traditional rounding-off rules.

Example

If you conclude a 12-month (365-day) deposit contract in the amount of 500 € with an interest rate of 0.30%, then at the end of the deposit period the bank will transfer the interest to your account in the amount of 1.52 € and withhold 30 cents as income tax.

As crypto assets are not considered as securities, they are taxed under similar rules as other assets (e.g., real estate, physical gold). This means, among other things, that the investment account system may not be used to trade crypto assets. Read more about the taxation of private crypto assets.

Standard system
The only allowed form of declaration for crypto assets. Every profitable sales transaction is taxable, but loss-making transactions cannot be deducted from profitable transactions. For example: if you have sold Bitcoin twice during the year, and you made a profit of EUR 100 on one of the sales and made a loss of EUR 80 on the other, you will have to pay income tax on the entire EUR 100 gain.

You can find information for the declaration of crypto income in Table 6.3 of the LHV tax report. There we will show you all profitable crypto transactions made during the reporting period, grouped by instrument. It is up to you to review the entries and, if everything is correct, copy them manually into Table 6.3 (‘Transfer of other property’) of your income tax return.

Generally, it is sufficient to declare crypto gains on an instrument-by-instrument basis. For data verification purposes, the Estonian Tax and Customs Board may require you to provide a statement of all your crypto transactions. An overview of all transactions, including loss-making ones, can be found in the ‘Assets and liabilities’ → ‘Trade report’ section of the LHV Internet Bank.

Investment account system
As crypto assets do not fall under the definition of financial assets, they are not eligible for the investment account tax benefit. For this reason, it is a good idea to make transactions with crypto assets in another account that you do not use as an investment account.

However, if you have bought and sold crypto assets in your investment account, please do the following:

  • In Part II of Table 6.5 of your income tax return, declare purchases of crypto assets as a cash withdrawal from an investment account. If, after the purchase transaction, the total amount withdrawn exceeds the balance of the contributions to the investment account, you will have to pay income tax on the difference. If you sell crypto assets from your investment account, declare the proceeds from the sale as a cash contribution to your investment account. You can automatically transfer the required data on investment account contributions and withdrawals to the Estonian Tax and Customs Board from the ‘Assets and liabilities’ → ‘Investment account report’ section of the LHV Internet Bank.
  • If you made at least one profitable sales transaction of crypto assets during the year, then in addition to Table 6.5, you have to manually complete Table 6.3 (‘Transfer of other property’) and pay income tax on the gain. Please keep in mind, however, that unprofitable crypto transactions cannot be deducted from the profits, i.e. income tax has to be paid on each profitable transaction. You can find the necessary data for Table 6.3 in the ‘Assets and liabilities’ menu ‘Tax report’ in the LHV Internet Bank.

You do not have to declare to the Estonian Tax and Customs Board the existence of a PIA or securities transactions carried out through a PIA. In this sense, a PIA is similar to a pension fund – contributions are exempt from tax and withdrawals are taxed on the full amount withdrawn. However, you will still have to declare and, if applicable, pay income tax each year on the financial income (dividends and interest) received by the PIA.

Dividends
Under the current law, income tax liability cannot be deferred on dividends received by the PIA. Therefore, you will have to declare the dividends received to the PIA in your income tax return and, if applicable, pay income tax on them.

Dividends received from an Estonian company to your PIA must be included in Table 7.1 or 5.1 of your income tax return. If the dividend was taxed at the corporate level at a rate of 20/80, it was received by the PIA in net amount, i.e., without withholding income tax. These dividends are only taken into account in the calculation of tax-free income and must be included in Table 7.1 of the income tax return. If the company has paid dividends at the 14/86 rate and withheld 7% on the amount of the dividend, these dividends will be pre-filled in Table 5.1 of your income tax return.

Dividends from foreign shares have to be declared in Table 8.1 or 8.8 of the income tax return. If income tax was not withheld on the dividend, it has to be entered in Table 8.1 of the income tax return and income tax must be paid on it. If the income tax was withheld in a foreign country, it is no longer taxed in Estonia, but it must still be entered in Table 8.8 of the income tax return for the purposes of calculating annual income.

Interest
An amendment to the law entered into force on 1 January 2022, according to which no income tax will be withheld on the Estonian interest received by the PIA. If you have still received Estonian interest on your PIA during 2021, you will still have to report it in your income tax return and pay income tax, if applicable. There are no special rules for interest earned abroad – you have to continue to declare and pay income tax on interest earned in a foreign country.

Interest received on Estonian bonds, investment funds, and deposits must be declared in Part I or Part II of Table 5.1 of the income tax return, depending on whether or not income tax was withheld on the interest. Interest received from abroad must be reported in Table 8.1 of the income tax return. If income tax has been withheld abroad, the amount of income tax must be entered in Column 8 of Table 8.1.

All foreign dividends and interest that you have received in a bank account opened with LHV, including PIA, are shown in Tables 8.1 and 8.8 of your LHV tax report. However, Estonian dividends and interest are not reflected in the LHV tax report – you can find information on dividends received and withheld income tax in your PIA account statement. It is up to you to review the information and copy it into the appropriate tables on your income tax return. In doing so, please note that dividends and interest received from an Estonian issuer are usually automatically included in your pre-filled income tax return, so please make sure that you do not enter the same payment twice in your income tax return.

If, during the year, you have received payments on the shares of your Estonian companies, made at the expense of the reduction of share capital, this data will appear automatically as pre-filled in Table 7.1 and/or column 4 of Table 6.4 of the Estonian Tax and Customs Board's (ETCB) income tax return.

Ordinary system
Taxable income is the difference between the payments declared in column 4 of Table 6.4 and the acquisition cost of shares.

The amount of capital share reduction taxable at the personal level will automatically appear in column 4 of Table 6.4 of the income tax return. In column 3 of the same Table, you must manually enter the acquisition cost (you can find it in LHV's summary statement or, if you have already sold the shares, in LHV’s tax report).

At the same time, it should be borne in mind that the acquisition cost, which has already been deducted on one occasion, cannot be taken into account for the second time. It means that after the share capital has been paid out, the acquisition cost of your shares will be reduced by the amount indicated in column 3 of Table 6.4. When you start selling your shares, you have to take it into account and correct the acquisition cost shown in LHV's tax report before submitting your income tax return, as changes in the acquisition cost due to the reduction of share capital are not reflected in LHV's system automatically.

Investment account system
Since share capital returns credited into an investment account usually constitute tax neutral transactions within the investment account system, make sure that the share capital payment entry in LHV’s investment account report has not been ticked, before submitting the data to the ETCB. In addition, make sure to delete the pre-filled data from Table 6.4 in order to defer the income tax liability arising from the distribution of share capital.

If part of the payment has been taxed at the corporate level, you can declare this portion of the share capital distribution as an investment account contribution in Part II of Table 6.5 of the income tax return. The amount of share capital distribution on which income tax has been withheld at the corporate level is automatically pre-filled in Table 7.1 of the income tax return.

Declaration via the ordinary system

In the LHV internet bank you will find your tax report, which consolidates all of the information in your LHV bank accounts regarding gains or losses from the transfer of Estonian and foreign securities, interest income from securities and dividends from abroad.

Transactions performed with the trading platform LHV Broker are not reflected in the tax report.

Information from the tax report can be used to complete your income tax return.

If you are declaring securities income in both the ordinary system as well as the investment account system, remove the investment account entries from the LHV tax report.

If you have received securities related income from somewhere other than LHV investment services (for example, crowdfunding platforms), then this data must be added to your income tax return by hand.

LHV’s tax report include tables 6.1 and 8.2 for declaring gains or losses from the transfer of securities, the format of which is the same as the corresponding tables in the income tax return. It is the task of the declarant to, if necessary, check the transactions and sums and thereafter copy the data into the tables in the income tax return.

In the LHV internet bank select “Tax Report” from the “Assets and Liabilities” section.

  • Check the correctness of the data in the tax report.
  • Copy the data from the tax report to tables 6.1 and 8.2 of the income tax return.
  • Submit the income tax return.
  • Be prepared to submit additional evidence at the request of the Tax and Customs Board.

In addition to the tax report, LHV’s clients are also able to receive a realized profit/loss report from the LHV internet bank for the same period of time. It contains more detailed information about the transactions made (currency, service fee paid upon purchase, and exchange rates).

If you click on the securities symbol in the realised income/expense report or in the tax report in the LHV internet bank, you will receive a detailed breakdown of the transactions that have been made to acquire this securities position – this is the securities transactions report.

This report is useful

  • in calculating or controlling the acquisition cost, especially if, following the acquisition, a spilt or other corporate activity (merger, division, etc.) has taken place;
  • in the case of a purchase or sales transaction for securities that is the result of the exercising of options. The costs associated with acquiring an option shall be included among the costs of the securities (call option) or the disposal costs (put option).

Any gain or loss that you have received from the sale of shares, investment fund (including money market funds) shares, bonds or debt obligations, options, derivative instruments or other unnamed securities (meaning the sale or in the course of an exchange for the asset) must be shown in the income tax return.

  • When selling – the difference between the acquisition cost and the sales price of the security.
  • When exchanging – the difference in market price between the acquisition cost of the security that was exchanged and the market price of the security that was received in exchange.

In the case of the merger, division or transformation of companies and non-profit organisations, new holdings received by way of exchange of shares shall be taxed when they are transferred. The difference in the acquisition cost of the exchanged share and the sales price of the share received shall be taxed.

Under similar conditions, the gains received from the transferring of shares acquired through the switching of the investment fund units of European Union Member States are also taxed.

No, you can’t do that, since the acquisition cost of the share is taken into consideration during the taxable period when the share was transferred.

No, you do not. A relevant entry does appear automatically on the tax return; however, since a transfer of securities from one of your accounts to another does not constitute a transfer of securities, you may delete this row from the declaration.

The acquisition cost of a security is comprised of all of the expenses incurred and documentarily certified in the acquisition of that security.

As the costs directly attributable to the disposal of the asset are an indefinite legal concept, they must be viewed separately in the case of each specific transaction. Directly related costs can be costs that are necessary for the transaction, without which the transaction would not be possible to complete.

Account management fees for the securities account or any other overhead costs that have been incurred by the taxpayer are not taken into account as expenses. These costs are to be borne by the individual irrespective of the transfer of the securities and cannot be deducted from the gains or added to the losses.

In this case, the tax liability arises from the transfer of shares. Their acquisition cost is zero.

No, the switching of such units is not subject to income tax. Transactions involving the switching of these units do not have to be declared.

When calculating the gain obtained from the sale of units acquired during a tax exempt swap, the acquisition cost of the units transferred during the course of the switch can be taken into consideration.

In the case of the transfer of units acquired in a tax-free exchange, the time of acquisition of the units shall be deemed to be the time of acquisition of the units transferred during the switch.

  • FIFO method – the transfer takes place in the order of purchase, or
  • weighted average method – the acquisition cost for one transferred security is calculated by dividing the sum of the acquisition cost of the same class of securities existing at the time of transfer by their number.

Calculation of the acquisition cost may be complicated by corporate actions (split, merger, division, fund issue, spin-off, etc.), exercise, the transfer of securities from one account to another, etc.

After calculating the acquisition cost using the FIFO method, LHV’s base system for tax reports is also able to transfer the acquisition cost for one transaction over to another. This opportunity is applied, for example, when reflecting a split: a negative entry is made in the client’s account to write-off the securities, while a positive entry is made to apply the new securities position. These entries are linked together to pass on the acquisition cost of the negative entry to the positive entry.

At the same time, more complicated transactions (but also, for example, transferring securities from one account to another) may be reflected as so-called free entries, in which case LHV must manually combine those entries with the necessary coefficients. Failure to do so will result in the acquisition cost transfer not being made and incorrect data may appear in the tax report.

Therefore, in the case of free entries and other potentially unsafe transactions, the corresponding lines in the tax report are marked with red and it is recommended that the customer double-checks them. If necessary, contact LHV in order to combine entries or make other corrections.

The transfer of securities shall take into account not only the benefits derived from the transaction but also the transactions carried out at a loss. As such, it is immaterial whether the loss from the transfer of securities was incurred during that taxable period or earlier.

If the loss from the transfer of securities was incurred in previous taxable periods, the loss must already have been declared and it is then carried forward from previous taxable periods.

If the loss from the transfer of securities is greater than the gain received from the transfer of securities during the same period, the amount of loss exceeding the gain may be deducted from the gain received from the transfer of securities during the following taxable periods.

Shares are not transferred or declared invalid during the bankruptcy process, and a loss cannot be declared. In the case of the liquidation of a company or the receipt of liquidation proceeds income tax is charged on the amount in which the liquidation proceeds exceed the acquisition cost of the holding (except the part of the liquidation proceeds which are taxed at the level of the company). The loss incurred may also be declared upon the liquidation of the company.

A loss, which has arisen from the transfer of securities, may not be taken into consideration in the case of a reduction in the gains from the transfer of securities in the event that the loss was

  • suffered due to the transfer of the securities at a price which is lower than the market price to a person associated with the taxpayer or
  • upon the transfer of securities acquired from a person associated with the taxpayer at a price which is higher than the market price.

Regarding transactions concluded at a loss with associated persons, place an “X” in column 8 of table 6.1 in your income tax return in the event that you acquired a security granting the right to receive a dividend 30 days before the date on which the persons with the right to receive dividends are specified and you transferred

  • on the date on which the persons with the right to receive dividends are specified or
  • for a period of 30 days after that date.

In the case of the last two transactions concluded at a loss, write an “X” in column 9 of table 6.1 of your income tax return.

In LHV’s tax report these transactions are marked with three stars (***).

Since the loss from the transfer of shares cannot be taken into consideration in the situation described, the option premium, which would increase the loss, also cannot be taken into consideration.

The sale or exchange of a security in the course of a market transaction before the maturity date of the bond is declared as a security transfer. The yield on an existing bond is taxed as interest, even if the interest is the difference between the issue price and the repurchase price (zero-coupon bond) of the bond.

If the employee has received securities from his or her employer, either free of charge or at a preferential price, on which the employer has paid the fringe benefit, income and social tax, or a physical person has received a security as a gift from a legal person for which the legal person has already been charged income tax, then upon the transfer thereof the sum of those securities will be added to their acquisition cost, for which the employer or the legal person has already been charged income tax.

Ask the employer or legal person that granted the security for a free-form certificate, which includes the name and registry code of the legal person that issued the security, the type, amount and cost of the security and the amount of income tax that the legal person has already been charged. As this amount can only be taken into consideration in the event that the legal person has already been charged income tax on the market price of the free of charge or preferentially priced securities, the certificate must show when and in which amount the income and social tax, mandatory funded pension payment and unemployment insurance premium declaration referred to in Annex 4 or 5 is reflected.

The taxpayer is able to take their own cost incurred in acquiring the option’s underlying assets as the acquisition cost and the value of the option taxed as a fringe benefit by the employer, which is listed on the certificate issued by the employer.

If the underlyings to which the option refers are the holding in the employer or a company that belongs to the same group as the employer, the acquisition of the holding that constitutes the underlying assets of the share option is not classified as fringe benefits, if the holding is acquired no earlier than three years as of the granting of the share option. An employee is required to notify the employer of the transfer of the share option. In the case that the underlyings to which the option refers are changed, the specified term shall be calculated as of the granting of the initial option. If the entire holding in the employer or a company that belongs to the same group as the employer is transferred during the term of at least a three-year option contract, and also in the case that an employee is established to have no work ability or in the event of the death of an employee, fringe benefits do not include the acquisition of the holding constituting the underlyings to which the option refers, to the extent that corresponds to the proportion of the time of keeping the option prior to the specified event.

The exemption from income tax does not extend to the income received from the transfer of the option.

Securities which are acquired through succession or as a gift are reflected in LHV’s tax report at an acquisition cost of zero, i.e. as securities that were received for free. Upon transfer, income tax shall be paid on the sales amount.

Securities transferred via a financial intermediary in a foreign country shall be subject to the same rules as securities acquired in Estonia. Expenditures incurred in a foreign currency, the sale and market price of securities, as well as paid taxes and withheld income tax are to be calculated in euros (if the transaction currency is other than the euro) based on the ECB’s euro foreign exchange reference rates, which was valid on the day the expenditure was incurred, revenue was received, or income tax was paid or withheld.

Securities transferred in a foreign state must be indicated in table 8.2 of the income tax return of a natural person, which is completed in the same way as table 6.1.

A transaction for a transfer executed with shares of this type is shown as securities income obtained in a foreign country.

Based on the information received regarding the securities transactions performed through the NASDAQ CSD (formerly the Estonian Central Register of Securities (ECSD)), the tax authority pre-completes table 6.1 in the tax return of a natural person.

As the NASDAQ CSD does not have comprehensive data on all transactions, it is up to the taxpayer to include data that is missing from the table for transactions that have not been performed via the NASDAQ CSD, or which they have performed with a nominee account and not their own personal account.

At the same time, the taxpayer must also update the transaction information submitted by NASDAQ CSD. For example, NASDAQ CSD is unable to provide the tax authority with information on th