Lithuania proposes CIT hike, additional tax measures from 2026
The Lithuanian Ministry of Finance has announced tax measures, on 16 April 2025, which propose raising the standard corporate income tax rate (CIT)Â from 16% to 17% and the reduced rate from 6% to 7%. The changes are expected to generate EUR 111.5
See More
Albania: Council of Ministers approves draft tax treaty with Lithuania
Albania's Council of Ministers approved the signing of a draft income tax treaty with Lithuania on 9 April 2025. This announcement was made by The Albanian Telegraphic Agency (ATA) on the same day. The deal aims to prevent tax evasion through
See More
Lithuania to tax sugary beverages
The Lithuanian government has put forward a draft law to introduce a new tax on sugary drinks. This would apply to liquid food products intended for consumption that contain at least 5 grams of sugar, sweeteners, or a combination of both per 100
See More
Lithuania considers increasing preferential VAT rate to 12%
Lithuanian Prime Minister Gintautas Paluckas has confirmed that the Government is considering increasing the preferential rate of value-added tax (VAT) from 9% to 12%. The 21% standard VAT rate and the 5% super-reduced rate will remain
See More
Lithuania plans further CIT rate hike
Lithuania is planning to further increase the corporate income tax rate (CIT), which could rise to 17%–18% from 16%. "The corporate tax could certainly be increased by one or even two percentage points. This would not reduce our business
See More
Lithuania: Parliament proposes phased increase in VAT registration threshold
Lithuania’s parliament (Seimas) has recently proposed an alternative draft bill for the phased increase in the value-added tax (VAT) registration threshold, which would take effect on 23 February 2025. The current threshold of EUR 45,000 would
See More
Lithuania expands deductible corporate gift expenses
Lithuania's tax authority expanded the range of corporate gifts eligible for tax deductions as representational expenses, effective 17 February 2025. The updated regulations now include items such as sweets, edible gift sets, and alcoholic
See More
Lithuania: Government approves VAT Law amendments to align with EU Directive
The Lithuanian government approved amendments to the VAT Law to incorporate provisions of EU Directive 2022/542. Lithuanian Prime Minister Gintautas Paluckas made this announcement on 12 February 2025. Earlier, the Ministry of Finance has made
See More
Lithuania: Government approves draft law to implement EU VAT scheme for small businesses
The Government of Lithuania approved the draft Law prepared by the Ministry of Finance on 5 February 2025, which proposes to transpose the new provisions of the European Union (EU) legislation adopted in the field of value added tax (VAT) that are
See More
Lithuania: Parliament to discuss reduced VAT rate for food and catering in spring session
Prime Minister Gintautas Paluckas announced that the Lithuanian Parliament will consider introducing a reduced VAT rate for food products and public catering establishments in the spring session. Though he has not pledged his support, he recognized
See More
Lithuania updates corporate and dividend tax rates for 2025
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
See More
Lithuania considers raising VAT registration threshold to new level
Lithuania's parliament is considering a proposal to raise the VAT registration threshold from EUR 45,000 to EUR 60,000. Under the new rule, businesses in Lithuania would only need to register for VAT if their annual turnover surpasses EUR 60,000.
See More
Lithuania: VMI clarifies EU VAT scheme for small businesses
The Lithuanian State Tax Inspectorate (VMI) announced the publication of guidelines on how to become users of small business schemes for VAT exemptions in other EU member states on 21 January 2025. The rules are accessible through the VMI
See More
Lithuania moves to terminate 1995 tax treaty with Belarus
Lithuania issued Law No. XV-103 in the Official Gazette on 22 January 2025. Earlier, the Lithuanian government approved a draft law to terminate the 1995 tax treaty with Belarus on 13 November 2024. This decision comes after Belarus suspended
See More
Lithuania raises dividend tax rate from January 2025
Lithuania’s State Tax Inspectorate (STI) has introduced new guidelines on the increase of the dividend tax rate from 15% to 16%, effective from 1 January 2025. A dividend tax is levied by a jurisdiction on dividends paid by a corporation to its
See More
Lithuania introduces new VAT registration rules
The State Tax Inspectorate of Lithuania has issued a new order (VA-5) outlining updated procedures for registering and deregistering VAT identification numbers for taxable persons. The order was published on 17 January 2025 and is effective from
See More
Lithuania, Belarus tax treaty ends in January 2026Â
Lithuania's State Tax Inspectorate (STI) announced on 29 January 2025 that the 1995 treaty with Belarus was formally terminated. Lithuania announced the termination of the treaty by publishing Law No. XV-103 in the Official Gazette on 22 January
See More
Lithuania proposes further VAT rule amendments for small businesses
The Ministry of Finance has made further amendments to the Law on Value Added Tax (VAT), refining previous proposals and enhancing alignment with EU Directive 2022/542 on 27 January 2025. The amendments include key updates such as the expansion
See More