We thank you for choosing Crowdpear for your investments, and we will do our best, so you have the best experience by using our services.
We remind you that Crowdpear is a regulated crowdfunding platform to which certain regulatory requirements are applied, including a withholding tax (WHT) of up to 15% on the earned interest. Please note that you can easily reduce the WHT applied on our platform by providing us with a filled DAS-1 form (an example of how to fill the DAS-1 form), and we are here to assist you.
If you are a tax resident (a private individual) of a country that has a double tax treaty exemption agreement with Lithuania, you can reduce the WHT to 10% or even 0% (depending on the country). A list of countries where Lithuania has a double tax treaty exemption agreement and applicable tax rates can be found here.
There is no WHT for clients – companies registered in EEA and in countries that have a double tax treaty exemption agreement with Lithuania. If you invest on Crowdpear as a company, a 0% tax is applied to your account, and you don’t need to provide us with the DAS-1 form.
If you are a private individual, follow these steps to reduce WHT:
• Download, fill in, and sign parts I, III, and IV of the DAS-1 form.
• Your local tax authority must sign part V (or provide you with an equivalent certificate of tax residency).
• Submit the documents in your Crowdpear account and wait for them to be reviewed.
• Reduced tax rate will be applied accordingly and valid until the end of the current calendar year.
Please note that you need to provide us with the DAS-1 before the first interest is paid to you because the tax is deducted during the payment of interest. For those, who invested in real estate projects in January this year, the first interest will be paid in May. A standard 15% tax rate on the interest earned is applied if the documents are not submitted to the platform. So please do not delay the provision of DAS-1 forms.
We thank you if you have already provided us with the filled DAS-1 form. In such a case, this email is just for your information.
The withholding tax does not mean more taxes for you
Please note that in most cases (depending on the country), the overall tax on interest after the tax deduction on the Crowdpear platform for you should remain the same as you pay in your country. For example, your country’s tax on interest earned is 15%. Crowdpear deducts 10% from your interest. It means that when declaring the earned interest in your country, you have to pay the difference of only 5% (as 10% was paid in Lithuania).
What to do if you do not provide us with the DAS-1 form
If you did not provide us with the DAS-1 form, and a 15% tax is deducted from your interest, you can fill in the DAS-2 form and contact the State Tax Inspectorate of Lithuania for a tax refund for a previous taxable year.
If you have questions or need our help, please get in touch with our Client Support team or find information in the Help section.