Important information for Lithuanian residents
If you invest as an Individual, the interest earned is included in Class B income, which you must declare and pay 15% PIT (personal income tax) on that income. This tax must be paid by Lithuanian residents themselves on the total amount of interest received during the tax period, which exceeds € 500, i.e. when the total amount of interest received during the tax period exceeds EUR 500, the amount exceeding EUR 500 is taxed at the rate of 15%.
When paying penalties interest, referral bonuses, cash back and other gifts to Lithuanian residents, HeavyFinance will deduct and pay 15% PIT to the State Tax Inspectorate (STI).
Important information for foreign residents
Interest on Lithuanian loans paid to foreign resident individuals is classified as Class A income and will be subject to personal income tax (PIT) deducted and paid by HeavyFinance. For this reason, foreign residents will automatically be charged 15% personal income tax before paying interest, which will be transferred to the State Tax Inspectorate (STI).
In order to reduce the taxes, foreign investors whose country of residence has a double taxation avoidance agreement with Lithuania should fill in section I through IV of a DAS-1 form and provide a proof of tax residency document in your country then send it to us at email@example.com with email title: “Income Tax”
The withholding tax will be reduced to those people who are residents of the countries that Lithuania has a double tax treaty exemption agreement with.
When paying penalties interest, referral bonuses, cash back, and other gifts and bonuses to foreign residents, HeavyFinance will make no deductions and is the responsibility of each individual to declare it to their competent tax authority.