Twino has become the latest European peer-to-peer lending platform to pass on the withholding tax rate reduction on to its investors.
This follows the news that the Latvian parliament has passed a law reducing the withholding tax rate for private individuals who are tax residents of another member state of the European Union (EU), Iceland, Liechtenstein, and Norway, from 20 per cent to five per cent.
Twino said that it implemented the rate reduction on 14 November for all qualifying investors.
“This is truly great news for our investors, and we are delighted that our efforts have resulted in law change making the regulatory and tax environment more attractive and welcoming towards investors,” said a Twino spokesperson.
“We have been working together with other industry stakeholders for two years to achieve this – it is a big win for everyone.”
The tax change was announced by the Latvia government earlier this month. Soon after, Mintos announced that it would be passing the reduction on to its users immediately, hailing the news as “a big win for investors.”
According to EU law, all retail investors must pay a withholding tax on the interest earned from their investments.
Several European P2P platforms had been campaigning to have this tax rate reduced in order to encourage investors to further diversify their portfolios.