Will pay for the first time
Calculating that due to the variable interest portfolio in force in Lithuania and the high liquidity of the banks, their profits could increase considerably and reach one billion euros this year, it was decided to introduce the solidarity contribution.
Such a change passed into law then met with considerable opposition. The Lithuanian Banks Association (LBA) also appealed to the president, asking him to veto this initiative. As indicated in the report, the LBA hoped that the Head of State would thus prevent the emergence of a legal act contrary to the Constitution and its negative consequences.
After Gitan Nausėda signed the draft law on the temporary solidarity contribution, it remained in force and the payment deadline for banks for the second quarter of this year is approaching soon.
Rasa Virvilienė, director of the legal department of the State Tax Inspectorate, said that it is stipulated that all banks established and operating in Lithuania, branches of banks authorized by the EU and foreign banks and financial groups of credit unions will have to pay the contribution.
“It will be calculated from the net interest income of the contributor for the quarter of the current payment period, and is paid by quarter of the payment period.
The contribution base is the net interest income, calculated according to the principles established by the solidarity contribution,” she explained.
Speaking of deadlines, the representative said that it is expected that by 2023 August 31 is the first deadline to declare and pay the advance contribution for the period from 2023. May 16 (when the law was passed, editor’s note) until 2023. June 30.
Advance payment for sh. Mr. The third quarter must be paid by 2023. on November 30, and for m. In the fourth quarter – until 2024. February 28
Total annual contribution to the State account for 2023. must be paid by 2024. June 15 It is specified that on this deadline, all advance contributions from previous periods are reviewed, and if necessary, the final amounts of payable/refundable dues are adjusted, fixed as an annual fee.
“It is important to mention that contributors must submit to VMI the information on the solidarity contribution to be paid before August 31, so currently the VMI does not have such data on the preliminary amounts,” said R. Virvilienė.
Millions will flow
Indrė Baltrušaitienė, communication manager of Luminor Bank in Lithuania, calculated that by the end of August, Luminor will pay almost 7 million to the state budget. EUR.
“This is the first installment of the temporary solidarity tax calculated from the amount of net interest income received in the second quarter,” she said.
As he stated, during the second quarter, Luminor earned 53.2 million. euros, net profit increased by 81 percent compared to the same period in 2022.
“In the first 6 months of this year, Luminor’s net profit in the Baltics reached 113.4 million euros, which is 2.6 times more than last year over the same period.
Its growth is explained by a strong increase in net interest income, the rise of which is directly correlated to the ECB’s monetary policy and the rise in key interest rates. This effect was greatly enhanced by the fact that base interest rates were kept very low for many years,” said I. Baltrušaitienė.
The representative of Swedbank, Gytis Vercinskas, assured that the exact amount of the solidarity contribution had not yet been calculated.
A representative of Banque SEB expressed the same opinion. It was explained that the bank will pay the solidarity tax on August 31, therefore the bank does not provide the data at this time.
Darius Burdaitis, director of the Lithuanian branch of “Citadelė”, assured that the fees must be paid by the end of August, so they do not have the exact amount to pay yet.
Monika Rožytė, director of the communication group of Šiaulių banka, assured that her bank had paid such fees for the second quarter. I will not pay
“The Solidarity Tax Law applies to us, but according to the current data for 2023 Šiaulių bankas cannot pay Solidarity Tax.
The Šiauliai bankas group earned 43.3 million in the first half. euros of unaudited net profit”, she declared and explained that the tax will not be paid taking into account certain points provided for by law.
Representatives of the Bank of Lithuania claimed that they did not yet have the exact amounts from the banks.
Taxes for banks – not only in Lithuania
In order to cushion the impact of high inflation and rising interest rates on citizens, the Italian government introduced a 40% interest rate. a tax on banks aimed at reducing excess profits.
According to ELTA, Rome hopes to raise “several billion” euros to ease the burden on society, said Italian Deputy Prime Minister and League leader Matteo Salvini.
It was decided that such a tax for banks would be temporary and only valid this year.
Italian banks are currently making huge profits thanks to high interest rates on loans. Salvini said the new measure aims to help families and businesses struggling to survive.
It was also announced that the Central Bank of Latvia supports the intentions of the country’s Ministry of Finance to impose a mandatory advance profit tax on banks, which would amount to 20%. the profit of the previous year.
“Banks and the entire financial sector are subject to a withholding tax of 20 percent of the total profit, allows Latvia to legally collect profits from this year’s activities,” the minister said.
For commercial banks, it is the growing monthly payments of borrowers that generate high income, not the growing number of borrowers.
The Central Bank of Latvia hopes that commercial banks will start taking better care of their customers and participating more actively in the economy. Accordingly, the bank supports the proposal of the Ministry of Finance, writes ELTA.
There is also a bank tax in Spain. It brought in 4.8 percent for two years. tax on bank interest and commission income.
Lithuania will spend funds on defense
In Lithuania, the temporary solidarity contribution will be applied to all credit institutions, excluding 400 million. euros, i.e. 1 percent of the deposit limit of all residents, but a coefficient reflecting the share of activity of each credit institution in Lithuania is applied to the basis.
The bill proposed that the funds collected from the banks be used to finance projects for the adaptation and/or development of military mobility and dual-use (civil-military) transport infrastructure, as well as the necessary military infrastructure. to provide host nation support.
It was previously estimated that after the adoption of the law in 2023, around 130 million euros could be collected in the state budget. EUR, in 2024 – about 230 million. euros, and in 2025 – about 50 million. euros.
Source: The Delfi