Lithuania has published Law No. XV-818 in the Official Gazette, approving ratification of its income tax treaty with Pakistan, which is designed to prevent double taxation and strengthen anti–tax evasion measures.
Lithuania published Law No. XV-818 of 16 April 2026 in the Official Gazette on 29 April 2026, approving the ratification of the income tax treaty with Pakistan. The law represents the formal legislative step required to bring the agreement into force under domestic law.
The treaty, signed on 23 September 2025, is designed to prevent double taxation and strengthen measures against tax evasion and profit shifting, in line with OECD and G20 standards. Signed by President Gitanas Nausėda, the act confirms Lithuania’s ratification of the agreement concluded between the Lithuanian government and the Islamic Republic of Pakistan.
The treaty covers profit and income taxes in Lithuania and income tax and super tax in Pakistan. For dual-resident companies, tax residence will be determined by mutual agreement between the competent authorities, taking into account factors such as incorporation and place of effective management. With this legislation, the Lithuanian Seimas has formally incorporated the treaty into the national legal framework, enabling structured tax cooperation between the two countries.
The treaty will take effect after the exchange of instruments of ratification. It will apply in Lithuania from 1 January of the year following its entry into force, and in Pakistan from 1 July of the year following its entry into force.
Earlier, the Lithuanian Parliament (Seimas) approved the draft law ratifying the income tax treaty with Pakistan on 16 April 2026.
