Lithuanian Ministry of Finance published a set of guidelines for cryptocurrency and Initial Coin Offerings (ICO). The document entitled “ICO guidelines” is actually focused more on cryptocurrency, as three out of four sections of the document, are about them.
“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.” – said Vilius Šapoka, Lithianian Minister of Finance.
He also clarified that the published guidelines “describe only part of the aspects examined by relevant institutions, in case of discrepancy between guidelines and positions of institutions, the latter shall prevail,”
One of the first in Europe
Šapoka expressed that Lithuania is one of the first countries in Europe to prepare such guidelines.
“We are one of the first ones in Europe who prepared comprehensive guidelines on the legal framework for ICO projects covering regulatory as well as taxation and accounting.”
Apart from ICO regulations, the document also outlines the cryptocurrency related taxes as well as exemptions and deductions and cryptocurrency accounting.
The income from purchase and sales of cryptocurrency by individuals will be taxed a flat rate of 15% income tax.
For VAT it will be considered as other currencies, like euros or dollars. Cryptocurrency mining will not be subject to VAT.
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