According to the Lithuanian legislation* on prevention of money laundering and tax administration, we must collect information about our clients, with whom we begin or continue cooperation. When filling a legal person form, you will be asked to provide additional information:
- Residence address(es) for tax purposes
- Tax payer’s number(s)
- Beneficiaries, share of benefits and related private personal information
- GIIN code – for legal persons providing financial services
Explanations
- Residence address for tax purposes is usually the same as the country of incorporation (registration), except for where the legal person makes his business in another country, without establishing a branch or a representative of office there. In such cases, for profit tax purposes it is assumed that the legal person operates through the “permanent headquarters”
- Taxpayer’s ID number in the country of residence – TIN (Tax Identification Number). In Lithuania, the TIN is the same as the “company code” assigned by the Register of Legal Entities. The Stage Tax Inspectorate assigns a different taxpayer's registry number for permanent establishments
- GIIN code (Global Intermediary Identification Number) is the code given by the US Internal Revenue Service to financial service firms
- Beneficiary is a natural person or a group of persons controlling the legal person directly or through third parties, and affecting the distribution of profits.
Lithuania has double taxation agreements signed with some foreign countries. If a legal person wants to take advantage of the agreements on exemption from double taxation at the tax rates specified in their agreements, or exemption from interest by resident country (i.e. benefiting from the reduced tax rate/exemption), it must also submit the document confirming the residence for tax purposes (certificate issued by the national tax authorities). The document is only valid for the calendar year as stated in the certificate of the foreign tax authority.
* Common Reporting Standard (CRS) agreement achieved within the framework of the US bilateral Inter-Governmental Agreements (IGA) for FATC (Foreign Accounts Tax Compliance Act), OECD (Economic Cooperation and Development Organisation).
