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Post by clandestino52 on Jun 21, 2017 8:05:06 GMT
I received this mail from finbee. I suppose It will apply also for others platforms:
We have recently received an interpretation from Tax agency of Lithuania declaring that income tax on interest income earned in Lithuanian P2P lending platforms must be paid to the Republic of Lithuania. Starting from 1st of July 2017 we, FinBee, will start withholding income tax of 15% from interest paid to investors who are non-residents of Lithuania. All withheld income tax will be transferred to State Tax Inspectorate on monthly basis.
According to EU law interest income must be taxed at source. In Lithuania income tax rate is 15%. P2P lending platform operators are obliged to withhold income tax from all types of interest paid to investors (interest, accrued interest, overdue interest). We will automatically withhold income tax on transaction level based on residence country setting in your FinBee account.
Editor at globalp2plending.com
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kulerucket
Member of DD Central
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Post by kulerucket on Jun 21, 2017 8:08:59 GMT
You just beat me to it! I was just preparing a message. I don't understand why they cannot accept a Tax Certificate from another EU member state like Viventor and ViaInvest do. If it's an EU law they are referencing then it should be no different from Latvia. According to this page there is a double tax treaty between Lithuania and lots of countries so a certificate of tax residence should be enough to avoid taxes being withheld. |
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 21, 2017 8:12:33 GMT
Also, you should adjust the title to make it clear that you are talking about Finbee.
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Post by wiseclerk on Jun 21, 2017 8:35:28 GMT
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Post by petebutt43 on Jun 21, 2017 9:59:41 GMT
This amounts to a change in contract. all loan contracts should be re-authorised, surely.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 21, 2017 10:03:10 GMT
However, since I've submitted a certificate of tax residence (Antrag auf Erteilung einer Ansässigkeitsbescheinigung). I get no tax withheld from ViaInvest or Viventor as I said above so why can't Finbee accpt the same thing?
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Post by wiseclerk on Jun 21, 2017 10:05:13 GMT
Different country, different regulation
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 21, 2017 10:11:17 GMT
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Post by clandestino52 on Jun 21, 2017 10:37:01 GMT
Also, you should adjust the title to make it clear that you are talking about Finbee. I don't put finbee in the subject because I want to discuss with you the impact also if in future was the case of other platforms from estonia or latvia. I don't have investment in finbee but I have in omaraha from estonia and latvian platforms. If it was the case In the future. Should we pay tax in both countries ?
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Post by wiseclerk on Jun 21, 2017 11:57:58 GMT
Depends on the rules of your country of residence and double taxation agreements. For German tax residents I interpret it www.p2p-kredite.com/diskussion/ab-1-juli-haelt-finbee-steuern-zurueck-t5000.htmllike this. 10% of the 15% the investor pays Finbee can be deducted against the 25% German tax. So effectively an investor pays 15% German tax and 15% witholding tax, that is 30% total. Which is 5% more than the usual 25% German tax. But do ask a tax advisor, as I am not qualified. |
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Post by clandestino52 on Jun 22, 2017 8:46:50 GMT
Same for Savy
During last two months SAVY finally agreed with the State Tax Inspectorate (STI) on the taxation of the income of investors who are non-residents of Lithuania. The State Tax Inspectorate points out that interest earned from investments in peer to peer platforms is classified as A class income, therefore they must be taxed in Lithuania, and tax collection must be done on monthly basis by the platform operator - in our case - SAVY.
I hope it will not impact Latva.
Editor at globalp2plending.com
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 26, 2017 10:08:12 GMT
New update from Finbee just received. In short I can reduce my withheld tax from 15% to 10% is I go through a load of paperwork and send original documents via post to Finbee.
I'm out (very slowly).
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