In October 2019, the Lithuanian parliament adopted two draft bills that would increase the threshold for cash accounting and increase the corporate tax rate. The bill no. XIIIP-4115 which contains amendments to increase threshold for using cash accounting and the bill no.XIIIP-4115 which includes the increase the tax rate from 15% to 20%.
Under the bill no. XIIIP-4115, the income threshold for using cash accounting principle has been increased from EUR 30,000 in each period in the last three period to EUR 2 million in each period in the last three periods.
Subject to approval, the changes will take effect on 1 January 2020.
