Comprehensive roadmap completed for the modernisation of one of Estonia's key tax systems

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“The ambitious roadmap for transitioning to the component architecture demands significant investment but promises to deliver more efficient and flexible system management and development in the long run.”

Siim Aben

Partner, Ernst & Young Baltic's Consulting Department

A detailed roadmap for the modernisation of the register of taxable persons (MKR), one of Estonia’s most vital tax systems, has been developed through the collaboration of the Estonian Tax and Customs Board (ETCB), the Information Technology Centre of the Ministry of Finance (RmIT), Ernst & Young Baltic (EY), and Cybernetica. The primary aim of this project was to assess the current state of the system and establish clear guidelines for ensuring simpler, more user-friendly, and future-proof services for taxpayers. Many key services related to the state's tax system, as well as other governmental institutions, rely on the registry.

The need for system modernisation arised from the complexity and technical rigidity of the current system, which makes ongoing maintenance and updates challenging. The newly completed roadmap provides a foundation for future developments, including various reports such as diagnostics and architectural analyses, transition strategies from the old register to the new system, as well as a comprehensive business and implementation plan. Once implemented, the roadmap will enhance the ETCB’s capacity to manage and update the register while reducing the maintenance burden on RmIT, which is currently strained by the complexities of the existing system.

"Developing large information systems in a modular format is crucial for the Tax and Customs Board, as it accelerates development, minimises system interdependencies, and reduces administrative burdens," said Alvar Pihlapuu, Head of the MTA’s Development Department. "Our plan is to commence the implementation of the roadmap immediately. This is also a key step in transitioning MTA’s information systems to a cloud-based environment, which will enable greater flexibility, scalability, and location-independent operation."

Head of Cybernetica’s Tax and Customs Systems, Anu Pedosk, remarked: "With our extensive experience in developing information systems with complex security requirements, we were able to propose a realistic strategy for transitioning from a monolithic structure to a new, more flexible architecture. Our longstanding cooperation with the Estonian Tax and Customs Board provided us with in-depth knowledge of the systems in use, which was instrumental in creating the roadmap at every stage."

Siim Aben, Partner at Ernst & Young Baltic's Consulting Department, stated: "Over nearly two years, the project offered a comprehensive insight into one of the most critical information systems supporting the Estonian state – from business, technological, and financial perspectives. The ambitious roadmap for transitioning to the component architecture demands significant investment but promises to deliver more efficient and flexible system management and development in the long run. Additionally, the multi-year analysis and development programme presents an excellent opportunity to transition from project-based financing to a permanent funding model for the registry ecosystem."

Marko Mäe, Head of RmIT’s Tax and Customs Services Department, added: "The roadmap serves as a solid foundation for planning and developing service improvements and supports the gradual introduction of advanced technological solutions."

The project is financed via the Technical Support Instrument (TSI) and is made possible by the European Commission’s Directorate-General for Structural Reform Support (DG REFORM).