33 Shares 6376 Views 1 Comments

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

June 12, 2018
33 Shares 6,376 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



Facebook Comments

You may be interested

Hacker Charged 750 000$ in Cryptocurrency for Bail After Illegaly Accessed EA Accounts
Crypto news
18 shares8,019 views2
Crypto news
18 shares8,019 views2

Hacker Charged 750 000$ in Cryptocurrency for Bail After Illegaly Accessed EA Accounts

Justin - August 18, 2018

US Government released document explaining recent accident when hacker Martin Marsich illegaly accessed video game company's Electronic Arts accounts. He gained access to 25,000 accounts that allow…

Nvidia Forecast Slowed Down Wall Street as Demand for Crypto Evaporates
Crypto news
14 shares3,897 views
Crypto news
14 shares3,897 views

Nvidia Forecast Slowed Down Wall Street as Demand for Crypto Evaporates

Justin - August 18, 2018

According to Reuter Nvidia Corp (NVDA.O) shares fell 5 percents during hours of trading of Thursday session after the chip maker said "cryptocurrency-fueled demand had dried up and…

Bikini Crypto: Bitcoin Investing Explained by Richard Heart and His Friend Julia
Entertainment
14 shares2,443 views2
Entertainment
14 shares2,443 views2

Bikini Crypto: Bitcoin Investing Explained by Richard Heart and His Friend Julia

Justin - August 17, 2018

Cryptocurrency investor Richard Heart is a Billionaire, blockchain thought leader, cryptocurrency investor, author and serial entrepreneur. Today he published way different and extraordinary Q&A session with his…

One Comment

  1. Pingback: Ministry of Finance Lithuania Released ICO guidelines: "Crypto Economy is Here to Stay" | | IotaHosting.Org

Most from this category