Important information on income declaration

We would like to kindly remind you that until 2nd of May, 2019, the process of Personal income declaration for the year 2018 is happening in Lithuania.

Here, we provide you the very important information on declaring the income from investments in the P2P platform.

NEO Finance has provided the State Tax Inspectorate (STI) of Lithuania with information on the interest paid to investors, as well as the profit gotten from the investment transfer deals throughout the year 2018.

Interest paid to the foreign country residents are classified as the A-class income and the resident income tax (hereinafter – RIT) for them must be deducted and paid by the subject paying out the interest. In this case, it is NEO Finance.

Profit of the foreign country residents received from the trade of investments in the secondary market or from selling investments to NEO Finance, is not considered as an object of the income tax in Lithuania. Therefore, foreign country residents do not have to pay taxes in Lithuania for this income.

Non-taxable income includes interest from consumer credit provided through P2P platforms not exceeding EUR 500 per tax period. Foreign country residents can only benefit from this tax relief after the tax period has ended. This means that from the interest paid to non-residents, “NEO Finance” automatically deducts income tax, but the person will have the right to apply to the State Tax Inspectorate for a refund of the deducted tax.

You can find the full description on personal income declaration here: https://www.paskoluklubas.lt/en/page/13/non-residents-of-lithuania

Should you have any questions, do not hesitate to contact us.