Lithuania’s Debitum, a Borderless Financing Platform, Shares Update Regarding Chain Finance

Another loan that was issued by Chain Finance has now “been recovered,” according to an update from Debitum.

The loan was issued to a Lithuanian licensed financial institution and now “100% of principal amount, interest, and penalty amount for being late have been credited to Debitum Investors.”

Here are the details:

  • Interest rate: 9%
  • Penalty rate: 15% (27 days)
  • Grace period: 15 days (9% of interest)

In another update, Debitum explains how to allow their platform “to not withhold TAX.”

Debitum noted that they are announcing the solution to upload the Tax Residence certificate and the Resident’s Certificate-Application for Tax Relieves.

As mentioned in a blog post, if no information about the tax appears at the moment on your Debitum profile, it “means you are not a resident of the country which can allow Debitum not to withhold the tax.”

At the end of February, Debitum was “the first platform that launched financial instruments – asset-backed securities (ABS).”

This was done “under the license issued by the Financial and Capital Market Commission of Latvia.”

Debitum is now “a regulated platform and [they] are required to comply with governing regulations and withhold taxes of 20% on interest income earned by a private individual.”

So far, it was the investor’s responsibility “to report and pay taxes in their country from income on claim rights purchased on the platform.”

Most countries have “concluded tax conventions that allow Debitum not to withhold personal income tax in Latvia at the moment of income payment.”

To apply for the option not to withhold personal income tax from interest payments for 5 years, you will need “to complete the Tax verification step in your profile.”

For more details on these updates, check here.

Lithuania’s borderless financing platform Debitum recently shared its annual financial report.

The team at Debitum noted that they are happy that the number of registrations “reached 8360 at the end of 2021.”

This means “an increase of 41%,” the company revealed while adding that it is also important to note that in 2021 investors “deposited 5,994 million to the Debitum platform, which was 45% more than in 2020.”

In 2021, the total amount of investments “made was EUR 27,345 million, which was 73% more than in 2020 (EUR 15,776 million).” This means that their investors “like the assets that are offered on the platform,” the Debitum team claims.

Last year, the platform’s investors earned 550,000 Euros from investments.

Knowing all these facts, the company now believes that despite the Covid-19 pandemic, 2021 “was a good year for Debitum.”

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