On 7 November 2020, the Lithuanian government ordered a “lockdown” in response to the “second wave” of coronavirus (COVID-19) cases. There are also tax relief measures in response to the coronavirus (COVID-19) pandemic in terms of tax payments and installment payment arrangements.
Taxpayers listed in the “List of Taxpayers” directly affected by COVID-19-related measures will incur no late-payment interest for tax liabilities incurred for the period from 16 March 2020 through 31 December 2020. In order to take advantage of this interest relief, taxes must be paid or tax instalment (loan) agreements must be concluded by 28 February 2021. Taxpayers other than included in the list, although affected by the COVID-19 pandemic, may apply to the tax authorities to become eligible for the relief by 31 December 2020. Taxpayers who are directly affected by COVID-19 can conclude an interest-free contract for a period of two years until 31 December 2022. Tax installment (loan) agreements can be concluded for a longer period of five years. However, if the loan period goes beyond 31 December 2022, the general rules will apply and interest will be assessed.
