Lithuania has launched a consultation on draft tax amendments that would extend the tonnage tax scheme for shipping companies to 31 December 2036 and ease bareboat charter-out restrictions for intra-group transactions.
Lithuania has opened a consultation on draft amendments to the Law on Corporate Income Tax that would extend the tonnage tax scheme for shipping companies until 31 December 2036 and ease bareboat charter-out rules for transactions between entities within the same group.
The draft amendments, prepared by the Ministry of Transport and Communications, were registered under No. 25-15623(2) on 13 August 2026. The proposed changes would enter into force on 1 January 2027 and apply when calculating taxable profits for 2027 and subsequent tax periods.
Tonnage tax scheme
The draft would extend the fixed corporate income tax regime for eligible shipping entities by 10 years. The scheme is currently due to expire on 31 December 2026.
Shipping entities choosing the regime would generally be required to notify the local tax administrator by the last day of the first quarter of the tax period in which they first acquire the right to apply the scheme and choose to pay the fixed tax.
A transitional rule would apply for 2027, giving entities opting into the scheme until the last day of the second quarter of 2027 to submit the notification.
Bareboat charter-out
The proposal would also add Paragraph 4-1 to Article 38-1 of the Law on Corporate Income Tax.
Under the amendment, existing restrictions on leasing a vessel without crew, known as bareboat charter out, would not apply to transactions between entities belonging to the same group of companies.
The change would apply to intra-group transactions and would amend the current rules set out under Article 2, Paragraph 34, Point 8 of the Corporate Income Tax Law.
2027 tax treatment
The draft provides that where a shipping entity opts into the tonnage tax scheme for 2027, advance corporate income tax already paid for that period would be refunded or offset in accordance with the Law on Tax Administration.
The proposed rules would apply to taxable profits for 2027 and subsequent tax periods once the amendments enter into force.
Consultation
The draft is currently under coordination and consultation with the Ministry of Finance, State Tax Inspectorate (VMI), Competition Council and Lithuanian Shipowners’ Association.
The consultation on the draft amendments is open until 27 August 2026, after which the proposal can proceed through the next stages of the legislative process.
