Debitum must withhold tax on interest unless a reduced rate under a Double Taxation Treaty (DTT) applies and proper documents are submitted.
1. Who can benefit?
EU / EEA tax residents Generally subject to a reduced withholding rate (currently 5%). You do not need to provide any documents, as this tax rate is applied automatically. 0% is possible only for Lithuanian tax residents after providing documents. Non-EU tax residents The default rate is 25.5%, but it can be reduced if a DTT between Latvia and your country provides for a lower rate. Double Taxation Treaties (DTTs) are agreements between countries to prevent double taxation on the same income. They allow for reduced withholding tax rates if proper documentation is provided.
A reduced rate is applied only after document approval.
2. What documents are required?
You must upload:
A Tax Residency Certificate issued by your country’s tax authority (confirming tax residence for DTT purposes with Latvia). It should state the year that is now.
A signed Residence Tax Relief Application (available on the Debitum platform Tax section).
Both documents must be valid for the same tax year. Documents are considered valid if they are issued by the appropriate tax authority, explicitly confirm tax residency for treaty purposes, and pertain to the current tax year.
3. How to upload documents?
Log in → Go to Verification → Tax section → Upload:
Tax Residency Certificate
Signed Tax Relief Application
Submit for review.
The reduced rate is applied after approval and is not retroactive. Each year, you need to submit a new document. This annual submission ensures compliance with tax regulations and maintains your eligibility for reduced withholding tax rates.