Lithuania’s government has proposed several tax reforms to curb tax evasion and improve compliance as per international standards. These include DAC8 and amending the Code of Administrative Offences, among others.

On 9 October 2024, the Lithuanian Ministry of Finance released draft legislation to implement the Directive (EU) 2023/2226 or DAC8 regarding the reporting requirements of cryptoasset service providers. The legislation also proposes changes to advance pricing agreements (APAs), permitting retroactive tax law application for bilateral APAs, aligning with BEPS Action 14.

The Ministry of Finance also plans to amend the Code of Administrative Offences, introducing fines from EUR 200 to EUR 6,000 for not providing necessary information to the tax authority, with stricter penalties for repeated offenses. The changes take effect on 1 January 2025.

Earlier, the Ministry of Finance proposed a draft law to eliminate double taxation and prevent tax evasion aimed at incorporating solutions for avoiding double taxation on income related to Taiwanese tax laws into Lithuania’s legal system.