On 23 December 2022, Lithuania published Law XIV-1680 in the Official Gazette for implementing a windfall tax and solidarity contribution in accordance with EU Regulation 2022/1854. The law includes following measures:
- applying a 90% windfall tax on surplus revenue from electricity production;
- implementing a temporary 33% solidarity contribution on surplus profits for the crude oil, natural gas, coal, and oil refining industries in the tax year starting from 2023 to the extent exceeding 120% of the average taxable profits in the preceding four years (2018 to 2021).
- The solidarity contribution applies to companies that generate at least 75% of their revenue during a taxation period in the fields of extraction, mining, petroleum refining, or production of coke oven products.
The law entered into force on 1 January 2023.
