When private individuals invest in Notes or Fractional Bonds, Mintos is legally required to deduct withholding tax from the interest income, based on the investor’s country of tax residence. The withholding tax is automatically applied as soon as the interest is credited to your Mintos account.
You may be eligible for a reduced tax rate by confirming your tax details or submitting a tax residence certificate. Generally, when declaring taxes in your country of residence, the amount withheld can be used to reduce your total tax liability, ensuring that your effective tax rate remains the same as it would be for investments in claims. This helps prevent the possibility of double taxation.
Please note that no withholding tax is deducted for investments made by legal entities. Learn more about tax withholding.