33 Shares 6645 Views 1 Comments

Ministry of Finance Lithuania Released ICO guidelines: “Crypto Economy is Here to Stay”

Justin
June 12, 2018
33 Shares 6,645 Views 1

Yesterday, June 11th, Ministry of Finance Lithuania released it’s first ICO guidelines. Document was initiated by Lithuania Minister of Finance
Vilius Šapoka and covers various topics such as Initial coin offering (ICO), laws
applicable, asset class, corporate income tax, personal income tax and more.

Lithuania Minister of Finance VIlius Šapoka: “We acknowledge that the brave new crypto economy world is here to stay, this is why we encourage and invite its participants to innovate and create in Lithuania.”

“Lithuania has found itself in the middle of explosion of ICOs and blockchain based projects and in line with other countries – financial incumbents, when total values of all ICOs are being measured. This has happened due to our leadership in FinTech, advanced IT sector and infrastructure,open-minded public authorities, their encouraging signals and persistence in providing alternative access to finance to SMEs and startups.”

Despite the fact due to novelty of this sector the relevant legal regulation can change following the supranational (EU) and (or) national legislative initiatives these Guidelines are another step towards more certainty and transparency in the regulatory, taxation, accounting and other requirements as well as better cooperation between different
stakeholders.



Main topics:

Regulatory, Taxation, Accounting and AML / CFT

Some interesting facts from Document:

  • For the purposes of VAT, the virtual currency is considered as the same currency as euros, dollars etc.
  • Income received from individual purchases and sales of virtual currencies
    will be taxed standard 15% fixed income tax rate.
  • Not activated / locked tokens received by founders without payment
    will not be considered as subject to the income tax and will not be
    charged by the personal income tax until sale of these tokens
  • When virtual currency is mined, no goods/services are usually supplied for
    consideration, therefore, the mining of virtual currency is not subject to VAT.
  • If a person receives a reward (no matter in what form) for supplied mining
    services to other person and these services for VAT purposes are considered
    as supplied in Lithuania, such services are subject to VAT.
  • Sale of mined virtual currency (exchange to traditional or other type virtual
    currencies) is considered as supply of services for a reward for VAT purposes.
    However the sale of such currency in Lithuania is VAT exempt.
  • Ministry of Finance of the Republic of Lithuania with Bank of Lithuania
    and Financial Crime Investigation Service are preparing amendments
    of Anti-Money Laundering and Counter Terrorist Financing Law of
    Lithuania.
We invite you to to get familiar with Lithuania’s first ICO guidelines HERE.

Enjoyed the content? Subscribe for more



You may be interested

Power Ledger (POWR) Wins World’s Largest Startup Competition
Crypto news
8 shares779 views
Crypto news
8 shares779 views

Power Ledger (POWR) Wins World’s Largest Startup Competition

Justin - October 20, 2018

The Extreme Tech Challenge, the world’s largest startup competition which was held on Necker Island (British Virgin Islands) with an all-star judging panel spearheaded by Sir Richard Branson as anchor…

Nascar Driver Gil Linster Will Be Representing Verge (XVG ) at the final Whelen Euro Series Event
Entertainment
9 shares3,878 views
Entertainment
9 shares3,878 views

Nascar Driver Gil Linster Will Be Representing Verge (XVG ) at the final Whelen Euro Series Event

Justin - October 19, 2018

The NASCAR Whelen Euro Series (formerly known as Euro-Racecar NASCAR Touring Series) is an official NASCAR stock-car racing series based in Europe. Before it was sanctioned by…

Tech Revolution: Seoul Has Lined Up 14 Blockchain Projects till 2022
Crypto news
11 shares3,515 views
Crypto news
11 shares3,515 views

Tech Revolution: Seoul Has Lined Up 14 Blockchain Projects till 2022

Rokas - October 19, 2018

There are 14 projects that are in the planning stage to use blockchain until the year 2022 in Seoul of South Korea. This is part of the…

Most from this category