General Frequently Asked Questions

For example: The interest rate indicated next to each CrowdingLab crowdfunding project is an annual rate. Thus, if during a period of 12 months the estimated rate of return on the loan is 12 percent, this means that the monthly interest rate is 1 percent (12 / 12 = 1). For example, if you invest EUR 1,000 in a project with a 12 percent annual rate of return, then each month’s interest will comprise EUR 10 (EUR 1000 x (12/12/100) = 10).
When the borrower makes a payment, the funds will be distributed among all investors in proportion to the amount invested. If the amount received is insufficient to cover the full payment, the share of investments and interest will be allocated to the investors proportionally to the amount of investment. For example, if your investment comprises 3 percent of the total project amount, you will receive 3 percent of the interest amount transferred by the borrower. In this case, upon receipt of funds from the borrower who delayed payments, first, the default charges due to the investors will be deducted, then the interest.
The principal amount invested will be repaid at the end of the project, unless indicated otherwise.
Unless otherwise indicated in the loan repayment schedule provided next to the project, your interest will be paid monthly.
Residents of Lithuania - According to the legal requirements, CrowdingLab submits information about your earned interest to State Tax Inspection of the Republic of Lithuania (Lith. Valstybinė mokesčių inspeckija). You will find submitted information on your yearly income declaration and will have to pay an income tax of 15 percent.

You must declare the income received and pay due taxes before 1 May of the following year.
Please note that from January 1st 2018, income tax is deducted only from earned interest that exceeds 500 euros per year. 

Non-residents of Lithuania - According to Income Tax Law of the Republic of Lithuania, CrowdingLab is responsible for the collection and payment of income tax for non-residents. The income tax rate is 15 percent and it is deducted from earned interest. The platform automatically deducts it every time when loan installment is received.

If you are non-resident of Lithuania and you are living in a country which has valid Double Taxation Avoidance Treaty with Lithuania, you can apply for the reduced personal income tax rate.

CrowdingLab does not provide tax-related advice and would recommend turning to a local tax advisor for additional information.
Log in to your CrowdingLab account to see the amount available on your Paysera account. This is a settlement account and operates according to the same principles as the accounts in other banks: it can be used to make transfers, payments with the available Paysera Visa card or you can cash out the money available.

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