Frequently asked questions

Yes, the income earned on the Crowdpear platform is taxed based on the legislation of the country of the tax residence. Crowdpear is registered in Lithuania, therefore The State Tax Inspectorate of Lithuania (lit. VMI – Valstybinė mokesčių inspekcija) will be informed about the income investors have earned during the previous taxable (calendar) year.

Important to know for Lithuanian tax residents:

The State Tax Inspectorate of Lithuania (lit. VMI – Valstybinė mokesčių inspekcija) will be informed about the interest earned on the Crowdpear platform during the previous taxable (calendar) year, but it is full investor’s responsibility to declare and pay the 15% income tax from the profit earned, when income from the interest earned exceeds 500 Eur per taxable (calendar) year (interest earned up to 500 Eur is not taxed).

15% income tax for Lithuanian tax residents is also applied for the bonuses received (i.e., for the bonuses received when participating in the ‘Invite a friend’ program), but taxes, in this case, are declared and paid by Crowdpear. At the moment of the bonus payment, the investor (Lithuanian tax resident) receives the bonus amount, where a 15% tax rate was already deducted.

Important to know for non-Lithuanian tax residents:

A 15% income tax on the interest earned will be applied to all non-Lithuanian tax residents. Taxes will be deducted at the moment of interest payment and paid to the State Tax Inspectorate of Lithuania (lit. VMI) by Crowdpear.

If you are a tax resident of a country where Lithuania has a double tax treaty exemption agreement, you can reduce the withholding tax.

It is important to note that taxes on bonuses received (i.e., when participating in the ‘Invite a friend’ program) shall be paid by investors (non-Lithuanian residents) under the legislation of the country of the tax residence.

Important to know for Lithuanian legal entities:

Crowdpear does not deduct taxes from the income earned, and bonuses received. Declaring and paying taxes to the State Tax Inspectorate of Lithuania (lit. VMI – Valstybinė mokesčių inspekcija) is the legal entity’s obligation.

Important to know for non-Lithuanian legal entities:

Crowdpear does not deduct taxes from the income earned and bonuses received from legal entities registered in countries in EEA (European Economic Area) and countries where Lithuania has a double tax treaty exemption agreement. The company is responsible for declaring and paying taxes under the country’s legislation where the company is registered as a taxpayer.

A 10% tax from the income earned is deducted from legal entities registered in countries outside of the EEA (European Economic Area) or not included in the list of countries where Lithuania has a double tax treaty exemption agreement. Taxes are deducted and paid to the State Tax Inspectorate of Lithuania (lit. VMI – Valstybinė mokesčių inspekcija) by Crowdpear. It is important to note that taxes on bonuses received (i.e., when participating in the ‘Invite a friend program) shall be paid by the legal entities under the legislation of the country where the company is registered as a taxpayer.

List of countries where Lithuania has a double tax treaty exemption agreement

European Economic Area (EEA)

If you are a tax resident of a country where Lithuania has a double tax treaty exemption agreement, you can reduce the withholding tax. You shall download and sign the DAS-1 form and upload it when registering or after the registration in your settings.

Important to know:

• The DAS-1 form must be signed with a real signature, as e-signatures are not accepted.
• Instead of signing Part V in the DAS-1 form (‘Certificate of the Tax Authority of foreign country’), a certificate of tax residency issued and signed by the local authority may be provided with the signed DAS-1 form.
• In part III ‘Income’ -> ‘Type of income’, ‘Interest income/Income’ must be written by the investor. The date and the number of contract can be found in the user agreement (go to your account’s settings to find the user agreement).
• We recommend submitting the documents before your first investment or first repayment. In case the documents are not submitted, a standard 15% tax rate on the interest earned is applied.
• Please note that it may take 2-3 working days for the documents to be reviewed and accepted.
• DAS-1 form or DAS-1 form and a tax residency certificate shall be provided for every calendar year.
• Suppose the DAS-1 form has not been submitted for the previous calendar year, an investor may fill in the DAS-2 form and contact the State Tax Inspectorate of Lithuania (lit. Valstybinė mokesčių inspekcija – VMI) directly for a tax refund for a previous taxable year.

DAS-1

DAS-2

List of countries where Lithuania has a double tax treaty exemption agreement

For more information, visit the State Tax Inspectorate’s of Lithuania (lit. Valstybinė mokesčių inspekcija – VMI) website

The investor is responsible for declaring and paying taxes in the country where the investor is registered as a tax resident.

At the moment, unfortunately, no. A secondary market will be introduced on the platform soon.

If the required loan amount is not reached, the collection of investments for the project is canceled. Full principal amount + interest earned from the start of the investment until the cancelation of the project date is returned to investors.

Yes, a loan can be fully or partially repaid by the borrower earlier. If a loan would be fully repaid earlier, the full investment amount + interest earned until the closing date is paid to investors. In case a loan is partially repaid, the received repayment amount from the borrower would be divided proportionally among investors, proportionally covering the investment amounts depending on the size of the investment. The same interest rate would continue to be applied to the remaining investment amount.