Taxes
In accordance to the law "On Personal Income Tax", starting from 1 January 2010 income of the individual from transactions with investment fund units is imposed with personal income tax. Tax rate on income from the growth of capital is 15%. Investor - private person is responsible for tax calculation and payment to the national budget.
The income from investment funds is a difference between the value of purchase and sales price of the funds, that is divided by the number of months of the entire investment fund’s holding time and multiplied with the number of month from 1 January 2010 till the month of sale, including (according to the law "On Personal Income Tax", clause 50).
In the value of purchase also expenses for the purchase of investment funds can be included. If a result of the transaction is loss, then there is no need to pay the tax on the growth of capital. If one capital asset has suffered a loss, it can be covered by the profit gained from another capital asset within one taxation year.
The procedure of declaration and payment of the tax on income from the growth of capital:
- if monthly income from the growth of capital is till 100 LVL, the declaration must be handed in to the State Revenue Service Office once a year (no later than January 15th of the following year);
- if monthly income from the growth of capital is from 100,01 LVL till 500 LVL, the declaration must be handed in to the State Revenue Service Office once in a quarter (no later than 15th date of the month following the end of quarter);
- if monthly income from the growth of capital is above 500 LVL, the declaration must be handed in to the State Revenue Service Office till 15th date of the following month.
The calculated tax must be paid to the state budget within 15 days from the day of submission of the declaration to the State Revenue Service.
According to amendments of the law "On Personal Income Tax" in the period from 1 January 2010 till 31 December 2013 you can receive refund of the personal income tax, if:
- investment funds have been purchased by 31 December 2009;
- investment funds have been owned for at least 60 months (have not been sold or changed);
- tax allowances can be obtained from payments which do not exceed 20% from annual gross income.
More information about personal income tax calculation and the procedure how to complete a declaration you can receive in the State Revenue Service offices.
Detailed information about Danske Invest: www.danskeinvest.lu
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