--- title: Tax exemption for advanced training from 01.01.2012 date: 2012-01-04T18:39:30Z modified: 2012-01-04T18:39:30Z permalink: "https://grow.ee/tasemekoolituse-maksuvabastus/" type: post status: publish excerpt: "" wpid: 1059 timestamp: 2012-01-04T18:39:30Z tags: - Accounting --- **As of 01.01.2012, advanced training is no longer considered a special benefit**. Advanced training is training that allows you to acquire basic education and general secondary education in the evening or distance learning form or as an external student, complete vocational training or vocational secondary education part-time, and acquire higher education part-time or as an external student. Completion of advanced training is evidenced by a certificate or diploma. **Tax exemption applies to compensation for advanced training for an employee, civil servant, member of the management board of a legal entity or the CEO of another permanent establishment of a non-resident working under an employment contract.** Tax exemption does not extend to members of the supervisory body, natural persons working under an employment, agency or other contract under the law of obligations or providing services. The condition for tax exemption for advanced training is a direct need for advanced training (investment in the employee) and a valid employment relationship. The cost of covering advanced training is justified if the employer needs a specialist with such qualifications to fulfill its goals. Covering the costs of advanced training by the employer should be viewed as a normal investment, the purpose of which is to create the prerequisites for the successful operation of the employer in the future. When making such an expense, it is justified to assume that the employee will make a later contribution (for example, 3 years) to earn back the investment in him. A valid contract must be concluded with the employee and the employee must have started work, i.e. the tax benefit does not extend to the costs of advanced training if the contract has been concluded and the employee only starts work after, for example, three months. The tax authority recommends concluding an agreement on training costs with the employees (Section 34 of the Employment Contracts Act), which indicates the content and costs of the advanced training, the direct need for the costs and the reason for making the costs. The tax authority points out that the tax exemption does not distinguish between the employee's studies part-time, as an external student, in evening classes or in distance learning. Individual subjects completed within the framework of advanced training are still not considered as a fringe benefit if they are directly related to business and necessary for the employee's work. Compensation for costs for additional individual subjects taken that are not part of the curriculum and/or are not necessary for completing the advanced training (including those not directly related to business or necessary for the employee's work) is considered a fringe benefit. No tax exemption is provided for the reimbursement of travel and accommodation costs associated with advanced training. _Source: [http://www.emta.ee/index.php?id=31630](http://www.emta.ee/index.php?id=31630)_