On 27 June 2023, the Lithuanian parliament (Seimas) gave its preliminary confirmation, to a tax reform package proposed by the finance minister. The reform measures include:
Proposed changes to the tax framework encompass various aspects of fiscal policy. In terms of individual taxation, there are plans to augment taxes on personal business endeavors and enhance rates on dividends and familial gifts. Additionally, the introduction of an investment account is on the horizon, coupled with an elevation of the tax-exempt income threshold to EUR 751.
The corporate tax landscape is also set to undergo alterations, including an extension of tax relief for small enterprises, facilitating accelerated depreciation of fixed assets, and revising corporate income tax advance thresholds. Modifications to regulations governing tax losses and goodwill are also in the pipeline.
Real estate taxation is poised for adjustments as well, with an expanded scope to include individuals as taxable entities.
Furthermore, in the domain of Value Added Tax (VAT), there are plans to elevate the VAT registration threshold to EUR 55,000, aiming to impact businesses falling within this revenue bracket.
