Lithuania has emerged as a significant fintech and crypto hub in the EU, with the Bank of Lithuania adopting a progressive approach to digital asset regulation. DAC8 transposition adds tax transparency obligations to this dynamic market.
Regulatory Context
The Bank of Lithuania (Lietuvos bankas) has been one of the most active regulators in the EU regarding crypto and fintech licensing. Lithuania attracted a large number of e-money and payment institution licenses, many from international fintech companies seeking EU market access.
The Financial Crime Investigation Service (Finansinių nusikaltimų tyrimo tarnyba — FNTT) handles AML supervision for CASPs. Lithuania's regulatory framework has become increasingly sophisticated as the country's fintech sector has grown.
Tax Treatment
Lithuania taxes crypto-asset gains at rates of 15% for annual gains up to €120,000 and 20% for gains exceeding this threshold. The State Tax Inspectorate (Valstybinė mokesčių inspekcija — VMI) has published guidance on crypto taxation and has been developing its capacity to monitor crypto-related tax compliance.
Transposition and TIN System
The Ministry of Finance (Finansų ministerija) leads transposition. VMI will serve as the competent authority. Lithuania uses the asmens kodas (personal code) as the individual TIN — an 11-digit number. Entities use the juridinio asmens kodas (legal entity code).
Penalties and Impact
Lithuania's penalty framework includes fines under the Law on Tax Administration for reporting violations. Given Lithuania's position as a fintech hub, CASPs operating from Lithuania serve clients across the EU, making their DAC8 compliance particularly important for the cross-border exchange of information.
Conclusion
Lithuania's fintech-friendly environment and growing regulatory sophistication make it a jurisdiction where DAC8 compliance is both expected and supported. CASPs should leverage the Bank of Lithuania's guidance to build efficient compliance programs.
Preparing for DAC8?
Our team helps CASPs with gap analysis, transposition tracking, TIN validation, and XML report generation.