Lithuania’s parliament approved Law No. XIV-2680, on 6 June 2024, which partially implements the Pillar Two global minimum tax under Council Directive (EU) 2022/2523 of December 14, 2022.
This legislation includes postponing main provisions, such as the income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR). The Directive contains an option to defer the regulations, stating that Member States with no more than 12 ultimate parent entities within its scope can choose to delay the application of the IIR and UTPR for six consecutive fiscal years.
The law partially implements the provisions mandated by the Directive when the deferral option is chosen. It includes the primary definitions, reporting requirements, transitional rules related to deferral, rules for determining group member locations, and other relevant measures.
The State Tax Inspectorate (STI) of Lithuania has also published a draft legislation outlining procedures for submitting required information notifications, which are needed for electronic submissions through the STI portal.
The law will take effect on 1 July 2024, and the key requirements will apply to fiscal years starting on or after 31 December, 2023.
