On Jun. 25, LTH MoF informed of new investment account tax model.
LTH MoF informed that LTH PRL approved the amendments to the Personal Income Tax Law, which introduced the tax model of Investment Account to facilitate investments.
Main Points
Anyone wanting to use an investment account should notify LTH Tax that an account of his/more, in any financial institution, not only in LTH, is to be an investment account.
The investment account will provide opportunities for permanent residents of Lithuania to invest in securities distributed in stock exchanges/other investment instruments.
And there is only the final result of the investment, i.e. the earned profit will be taxed.
Profits and losses from different investment transactions will be aggregated, with the possibility of their transfer; any resulting profit will be taxed at the time of withdrawal.
There will be no fees when withdrawing contributions from the Investment Account.
The amount of funds invested through the Investment Account will not be limited.
Financial instruments to invest via the Investment Account include transferable securities distributed at trading venues e.g. publicly distributed shares, and bonds.
Money market instruments e.g. treasury bills; securities of collective investment entities; some derivative financial instruments; instruments in crowdfunding platforms.
Instruments distributed via peer-to-peer lending platforms and State savings bonds.
Effectiveness
The investment account will be effective from the beginning of 2025.
Jul. 10, 2024 New Tax Regime Reminder
On Jul. 10, 2024, LTH Tax issued information notice regarding publication of Law XIV-2803 of Jun. 25, 2024 that amended Law IX-1007 of 2002 on personal income tax.
Changes include legalization of the taxation regime re Investment Account's income.
And the determination of the deadline by which residents will be able to reduce their taxable income by paid life insurance premiums and contributions to pension funds.
Changes come into force on Jan. 1, 2025 for calculation and declaration from 2025.
Jul. 19, 2024 Editorial Update
On Jul. 19, 2024, Reg-Track made update to include LTH PRL, LTH MoF as regulators.
Oct. 2024, Advantages' Reminder
On Oct. 8, 2024, LTH MoF presented the changes to the investment account and other tools, e.g. savings and defense bonds, that will incite the public to make investments.
