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.

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.

European Economic Area (EEA)