Seimas, the Lithuanian parliament is reviewing a draft law to fully implement the Pillar Two global minimum tax, in line with Council Directive (EU) 2022/2523 of 14 December 2022. According to the draft, the law for full implementation is set to come into effect on 1 January 2025.
Lithuania will move to implement income inclusion rule (IIR), undertaxed payment/profit rule (UTPR) and domestic top-up tax.
Previously, Lithuania’s parliament approved Law No. XIV-2680, on 6 June 2024, which partially implemented the Pillar Two global minimum tax under Council Directive (EU) 2022/2523 of 14 December 2022. However, it postponed main provisions such as IIR and UTPR.