Lithuania's Seimas ratifies income tax treaty with Pakistan to prevent double taxation and curb tax evasion.
The Lithuanian Parliament (Seimas) approved the draft law ratifying the income tax treaty with Pakistan on 16 April 2026.
Signed on 23 September 2025, this tax treaty aims to prevent double taxation and strengthen measures against tax evasion and profit shifting, in line with OECD and G20 standards.
The agreement covers profit and income taxes in Lithuania and income tax and super tax in Pakistan. For dual-resident companies, residence will be determined by mutual agreement between the tax authorities, based on factors such as incorporation and effective management.
It will take effect upon the exchange of the instruments of ratification and will apply in Lithuania from 1 January of the year following its entry into force and in Pakistan from 1 July immediately following its entry into force.
Earlier, Lithuania’s government approved the ratification of the income tax treaty with Pakistan on 21 January 2026.
