Lithuania’s Ministry of Finance has announced a draft law on the Elimination of Double Taxation and the Prevention of Tax Evasion and Avoidance, which proposes to include in the Lithuanian legal system the solutions for the avoidance of double taxation with respect to income related to the territory subject to Taiwanese tax laws.
“The draft Law aims to include into the Lithuanian tax system the provisions establishing a clear procedure for allocation of income taxation rights, as well as embodying the principles of administrative cooperation. The adopted Law would ensure a smooth application of the provisions and, in parallel, would create a more favourable climate for mutual investments, as well as more opportunities for Lithuanian business,” says Vice-Minister of Finance R. Bilkštytė.
The provisions for the avoidance of double taxation with respect to income related to the territory subject to Taiwanese tax laws would only apply on the basis of reciprocity.
Currently, the draft Law is submitted for consultation with the public. Proposals and opinions on the foreseen amendments are expected by 23 October 2024 this year.
Moreover, 58 conventions for the elimination of double taxation are in force today in Lithuania. In parallel, a draft denunciation of the Convention between the Governments of Lithuania and Russia for the Elimination of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital was prepared and adopted by the Seimas on 1 October 2024.
