Lithuania’s State Tax Inspectorate has announced changes to tax rates that will take effect on 1 January 2025. The corporate income tax rate will increase to 16%. Small companies, defined as those with fewer than 10 employees and annual income not exceeding EUR 300,000, will have a new tax rate of 6%.
The tax on profit distributions, including dividends, will also rise to 16%. Non-residents will be taxed at the same rate on certain income, such as the sale or transfer of property ownership, when not derived through a permanent establishment.
These changes will apply to the 2025 tax period, even if a company’s fiscal year does not align with the calendar year. The State Tax Inspectorate has provided detailed guidance with examples to explain the changes.
