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