Lithuania’s VMI is set to update procedures for forms used to claim treaty-based tax relief, request withholding tax refunds and certify income and taxes paid by foreign residents.
Lithuania’s State Tax Inspectorate (VMI) is preparing changes to the rules for completing forms DAS-1, DAS-2 and DAS-3, which are used by foreign residents and Lithuanian payers to apply for treaty-based tax relief, claim refunds of withheld tax and obtain confirmation of income and taxes paid in Lithuania.
The draft order, issued by the Head of VMI on 1 September 2026, sets out revised procedures for applying reduced withholding tax rates or exemptions under bilateral double taxation avoidance treaties. The changes are scheduled to take effect in 2026.
Under the proposed rules, DAS-1 will be used when treaty-based tax relief is applied at the time income is paid. The Lithuanian payer must have the completed form when making the payment. The foreign recipient must confirm their tax residency, beneficial ownership of the income and that the income is not attributable to a permanent establishment or permanent base in Lithuania.
A separate tax residency certificate issued by the foreign tax authority may be attached to DAS-1. If no separate certificate is provided, the foreign tax authority must complete and certify the relevant section of the form.
DAS-2 will be used to request a refund where treaty-based tax relief was not applied when the payment was made, including where the required residency certificate was unavailable. The form may be submitted by the foreign resident, an authorised representative or the Lithuanian payer.
The application must be submitted in two copies and include details of the income, tax actually withheld and the amount that should have been withheld under the applicable treaty. VMI must make a decision and process the refund within 30 calendar days of registering the request. This period is suspended if VMI requests additional documents and resumes on the day after those documents are received.
DAS-3 will be used to obtain VMI certification of income received and corporate or personal income tax paid or withheld in Lithuania. Applicants must submit the form together with a free-form written request.
VMI must certify and return DAS-3 within 10 working days from the day after the request is registered, provided the information is complete and can be verified. The form can cover up to 10 previous tax periods before the tax period in which the request is made.
The draft order also sets out procedures for submitting the forms by post or in person and for applications made through representatives. Personal data submitted through DAS-2 and DAS-3 will be processed for tax control purposes in accordance with the EU General Data Protection Regulation (GDPR).
The proposed changes therefore establish updated procedures for foreign residents and Lithuanian payers to obtain treaty-based withholding tax relief, recover excess tax withheld and secure official confirmation of income and taxes paid in Lithuania.
