Lithuania’s parliament members proposed amendments that would allow qualifying entities to deduct up to an additional 30% of investment project expenses from taxable profit. The proposed measure would apply from the 2027 tax period if adopted.
Lithuania has proposed amendments to Article 46¹ of the Law on Corporate Income Tax of the Republic of Lithuania (No. IX-675) on 14 September 2026, which would increase the maximum tax deduction available for qualifying investment projects from 100% to 130% of actually incurred expenses.
Under the proposal, entities would be able to reduce their taxable profit by an additional amount of up to 30% of actually incurred expenses for an investment project, provided that the project results in an additional improvement in the entity’s economic performance.
The additional 30% deduction would not apply automatically and would be available only if the required improvement in economic performance was achieved. The combined total amount reducing taxable profit under Article 46¹ could not exceed 130% of the actually incurred expenses.
If adopted, the law would enter into force on 1 January 2027 and apply to the calculation and declaration of corporate income tax from the 2027 tax period and all subsequent tax periods.
