Annual withholding tax | Luminor

Pursuant to the US regulations, every foreign financial intermediary is required to submit the information to the US tax institution Internal Revenue Service (IRS) on its customers that earn income in the USA. In case of Luminor Trade the reports should be submitted concerning Lithuanian residents, both private individuals and corporate entities. The income is treated as the distribution of US companies’ profit: dividends and similar payments. A US company is understood as the company registered in the USA, or a foreign company with the major proportion of its income earned in the USA. Financial instruments are corporate shares (stocks) and/ or exchange traded funds (ETF).

Luminor Bank fulfils its duties and every year completes and submits the required forms to IRS. Because of such reporting Luminor Bank incurs certain costs, therefore the annual reporting fee shall be applied to the customers that have received the above income during the fiscal year.

Withholding tax size
Withholding tax is fixed at 90 USD per year

The reporting fee shall be applied starting with 1 January 2014 for the submission of 2013 annual reports. It shall be paid once a year on 2nd quearter (valid from 2017 04 14, before that it was 4th quarter) 4th quarter. For example, the fee for the year 2013 shall be applied in the year 2014, for 2014 – in 2015, etc. Luminor Bank shall charge this fee from the customer’s trading account.

You will find more information on IRS home page:


US legislative requirements referred to above may be incomplete and may be amended. The specific information submission regulations are set by IRS and (or) other US institutions, without any coordination with Luminor Bank. Luminor Bank does not assume any responsibility for the regulations of USIRS and (or) other US institutions and their publicising. Please, bear in mind that the annual reporting fee may not be treated as Luminor Bank obligation to provide tax advice with relation to Luminor Bank services or take any actions that might help the customer to optimise taxes, avoid double taxation and the like. The customer’s duty is to explore and pay the taxes applicable to its jurisdiction and legal form. If you need additional explanations, we urge you to contact tax advisors.