STI ignore negative interest: Investor experience - VZ.LT
VILIBOR 6 0.00%
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Europe, the increasing prevalence of negative interest effect, the State Tax Inspectorate (STI) negative interest effect is not recognized and forcing investors to pay from earnings from the bonds with negative interest rates, although initiative in reality such bonds do not earn anything. initiative
Related essays "The Bank of Lithuania in the negative Euribor will say on Thursday" starts Trivia: 3 months. EURIBOR turned negative "Negative Euribor: the banks do not know how to calculate the" European banks to customers initiative for home loans already Saying this had to make sure the IT field working and investing free funds Kestutis initiative Užpalė businessman, who agreed to "business knowledge" to tell the story of your investment.
The story can be started from the fact that for some time now part of the Lithuanian government bonds purchased on the secondary market, not only do not earn anything, but even bears losses as guaranteed by the negative return on invested capital.
This is not true only of Lithuanian government bonds. Negative interest rates on the secondary market established not only for safety and the environment as Switzerland, Germany or Denmark bonds, but for, say, Slovak, Czech, initiative Belgian bonds, especially in the shorter term. Investors bonds with negative interest rates do not buy the fact that they would like them to make, but because it wants
Mr. Užpalis, like other investors this spring, rushed to declare their income and pay taxes on the money earned from the investment, but saw that the Lithuanian law makes paying taxes even on what is earned.
"Lithuania, and more - STI, 15% personal income tax (PIT) tax all bond coupon (coupon) amount, because it is an annual coupon (coupon) payments initiative STI called for residents to receive interest. initiative STI quite uninterested, almost always private investors purchased government initiative bonds at face value and market price. Therefore, the actual investor interest received is considerably lower than the annual bond coupon-section. Recently, these true interest is very close to zero or even negative, "- says Mr. Užpalis.
According to the interlocutor, the problem initiative is that an investor buying a Lithuanian initiative or other safe bonds pay premium over the nominal bond prices, which does not recognize the STI allowable deductions, reducing real income received by the investor (ie really interest) size.
True, the 18-Lithuanian business accounting standard adopted under the Ministry of Finance Audit and accounting services not only allows, but also requires businesses in terms of financial assets and those assets in an income, to apply the effective interest method, called APM.
This is the amortized cost of a financial asset by the determination of the effective interest rate (APN) and interest income and expense distribution within the prescribed period. APN - is the rate whereby cash flows are discounted all financial assets and financial costs of holding time.
"On the other institution under the Ministry of Finance - STI - estimates that, by taxing the population, APM is not applicable. In other words, not only deprived of all real income earned from bonds, but also asked to pay extra for the government to itself lent the funds ", - complains p. Užpalis.
STI said that personal income tax is the subject of interest income, no matter how they are called - coupons, vouchers or similar - together with promissory notes related bonuses and prizes.
"... Resulting initiative negative difference between the non-equity securities with par value and the purchase price of the interest received or other financial instruments sales revenue netted" - r
VILIBOR 6 0.00%
First Home All news Daily Business News Gazette initiative premium Insights Photojournalism Polls Archive Photography Archive Lithuania most important "Lithuania" Company News Politics World Statistics Most importantly, the world 'Russia Europe Asia USA Other countries Sectors most important "sector" Transport and logistics IT and telecommunications Finance Industry initiative Property and construction Energy and Environment Trade Food and Agriculture Media Other sectors of the market is fundamental to the markets' equities, currencies, initiative raw materials Macroeconomics Exchange Trade Funds Small Business Management & Bonds Business Finance and Accounting Management Marketing Office initiative Administration Career Jobs Technology Weekend funny " Weekend of Food and Beverage Travel Culture and Society Automotive Curiosities Companies Tools All Tools My account Choose newsletter Enterprise Data Request advertising initiative content on your phone Glossary RSS Shop All Store Daily Business News Magazine "Business initiative Class" magazine Iliustruotasis Science "magazine illustrators history Conferences and Training Advertisement and promotion
Europe, the increasing prevalence of negative interest effect, the State Tax Inspectorate (STI) negative interest effect is not recognized and forcing investors to pay from earnings from the bonds with negative interest rates, although initiative in reality such bonds do not earn anything. initiative
Related essays "The Bank of Lithuania in the negative Euribor will say on Thursday" starts Trivia: 3 months. EURIBOR turned negative "Negative Euribor: the banks do not know how to calculate the" European banks to customers initiative for home loans already Saying this had to make sure the IT field working and investing free funds Kestutis initiative Užpalė businessman, who agreed to "business knowledge" to tell the story of your investment.
The story can be started from the fact that for some time now part of the Lithuanian government bonds purchased on the secondary market, not only do not earn anything, but even bears losses as guaranteed by the negative return on invested capital.
This is not true only of Lithuanian government bonds. Negative interest rates on the secondary market established not only for safety and the environment as Switzerland, Germany or Denmark bonds, but for, say, Slovak, Czech, initiative Belgian bonds, especially in the shorter term. Investors bonds with negative interest rates do not buy the fact that they would like them to make, but because it wants
Mr. Užpalis, like other investors this spring, rushed to declare their income and pay taxes on the money earned from the investment, but saw that the Lithuanian law makes paying taxes even on what is earned.
"Lithuania, and more - STI, 15% personal income tax (PIT) tax all bond coupon (coupon) amount, because it is an annual coupon (coupon) payments initiative STI called for residents to receive interest. initiative STI quite uninterested, almost always private investors purchased government initiative bonds at face value and market price. Therefore, the actual investor interest received is considerably lower than the annual bond coupon-section. Recently, these true interest is very close to zero or even negative, "- says Mr. Užpalis.
According to the interlocutor, the problem initiative is that an investor buying a Lithuanian initiative or other safe bonds pay premium over the nominal bond prices, which does not recognize the STI allowable deductions, reducing real income received by the investor (ie really interest) size.
True, the 18-Lithuanian business accounting standard adopted under the Ministry of Finance Audit and accounting services not only allows, but also requires businesses in terms of financial assets and those assets in an income, to apply the effective interest method, called APM.
This is the amortized cost of a financial asset by the determination of the effective interest rate (APN) and interest income and expense distribution within the prescribed period. APN - is the rate whereby cash flows are discounted all financial assets and financial costs of holding time.
"On the other institution under the Ministry of Finance - STI - estimates that, by taxing the population, APM is not applicable. In other words, not only deprived of all real income earned from bonds, but also asked to pay extra for the government to itself lent the funds ", - complains p. Užpalis.
STI said that personal income tax is the subject of interest income, no matter how they are called - coupons, vouchers or similar - together with promissory notes related bonuses and prizes.
"... Resulting initiative negative difference between the non-equity securities with par value and the purchase price of the interest received or other financial instruments sales revenue netted" - r
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