Croatian P2P lender Robo.cash recently commented on whether peer-to-peer investors are equal when it comes to “taxing their income.” To address the question, Robo.cash has assessed the European legislative framework.
Robocash writes in a blog post that the national legislations of European countries “generally have a unified approach to the taxation on returns from the P2P lending.” The firm also mentioned that most citizens “need to declare their income from P2P investments, even if it is reinvested and not withdrawn.”
P2P platforms, in turn, usually offer investors with “the ability to generate tax reports and send information to the tax authorities of their countries of residence.”
At the same time, however, the income of P2P investors in European countries “is taxed differently,” the team at Robo.cash explained.
They added:
“One of the highest taxes on capital income is set in Finland – 34% on capital over 30 thousand euros. A 30% rate applies in Belgium, Sweden and Cyprus. In the latter case, P2P investments are considered passive income and are subject to a one-time special defense contribution.”
They also mentioned:
“In some countries, the tax depends on the amount of the investor’s income. Thus, in Latvia it varies from 20 to 31%, in Spain from 19 to 23%. In the UK, when calculating the rate, the category of the taxpayer is also important. However, a key national feature is the IFISA system, which allows P2P investors to lend up to £20,000 tax-free in a tax year, regardless of the level of profits made. The amount can be applied exclusively to P2P investments, or divided between all assets.”
As noted in the update, the standard rate of 15% “is taxed on income from P2P investments in the Czech Republic and Lithuania.” In Bulgaria, the base tax rate “looks the most attractive for P2P investors.”
All profits received (interest, secondary market transactions, bonuses) are “subject to 10% income tax,” the update noted while adding that at the same time, when declaring in electronic form, “the full payment of all tax and the absence of old obligations, a 5% discount is applied.”
According to Robo.cash:
“Perhaps this is one of the reasons for the high activity of Bulgarian investors in the European arena, which has been repeatedly stated by Robo.cash analysts.”
The firm added:
“While some platforms automatically collect tax on transactions, Robo.cash does not withhold any taxes from the investor. Subsequently, the investor’s income is subject to taxation in accordance with the laws of his country. However, the platform provides investors with account statements that can be made on the site in standard or extended form for selected periods.”
In another update, Robo.cash revealed that one in seven P2P investors now “use their smartphones primarily as financial instruments.” At the same time, computers are “preferable for investors when working with P2P sites.” These are the results of the latest survey conducted by the investment platform Robocash. (Note: for more details on this update, check here.)
In a separate announcement, Robocash pointed out that they are following the conflict in Ukraine and understand that they “cannot stay indifferent.”
The Robocash team is “sincerely grieved about the situation in Ukraine and everyone it has been affecting.”
The firm added:
“In the current times, anger and hatred are causing additional pain. Today, we call for tolerance and respect for all people, regardless of their nationality. Robocash is proud to have people from different countries working together as a close team. Some of our employees come from Ukraine, and many have relatives and friends there. We remain hopeful that any conflict can be resolved with fair diplomatic measures.”
As a company, they “provide maximum support to [their] employees and their families, who are affected.”
They have reportedly “arranged donations to the SOS Children’s village fund in support of children affected by current events, as well as those who find themselves in difficult life situations.”
In addition to that, they encouraged their employees “to make personal donations, which Robocash is going to match 100%.”
The firm also shared:
“We make sure your money is safe and we will maintain the expected quality standard inherent to investing with Robocash. The conflict in Ukraine will not affect the operation of the platform and the holding as a whole. We assure you that the money invested on the Robocash platform is directed to the holding development in Asia and is in no way transferred to or from Russia. Under all circumstances, we continue to provide support to our investors, and will keep you informed of any future decisions.”