Lithuania proposes tax reforms on DAC8, reporting tax information
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
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Lithuania approves draft law to terminate tax treaty with Belarus
The Lithuanian government has approved a draft law to terminate the 1995 tax treaty with Belarus on 13 November 2024. This decision comes after Belarus suspended several articles of the treaty, including those on dividends, interest, and capital
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Lithuanian parliament approves tax treaty ratification with Andorra
Lithuania's parliament (Seimas) approved the ratification of the tax treaty on income and capital with Andorra on 12 November 2024. Earlier, the Lithuanian government approved the income and capital tax treaty with Andorra on 11 September
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Lithuania: Parliament reviews draft law to adjust social insurance contribution rates for 2025
The Lithuanian parliament is currently reviewing a draft law concerning the State Social Insurance Fund Budget for 2025, which outlines changes to social insurance contribution rates. Under the proposed framework, employee contributions will
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Lithuania proposes higher tax-exempt income for PIT in 2025 budget
Lithuania’s Ministry of Finance submitted the draft Budget for 2025 to the parliament on 16 October 2024 which includes proposed amendments to the Law on Personal Income Tax, among other tax provisions. The proposal outlines an increase in the
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Lithuania terminates tax treaty with Russia
Lithuania has terminated its tax treaty with Russia on 11 October 2024, published Law No. XIV-2991 in the Official Gazette. Lithuania's Ministry of Foreign Affairs stated that the treaty will expire on 1 January 2026. Earlier, Lithuania’s
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Lithuania proposes draft law to eliminate double taxation on Taiwan related income
Lithuania's Ministry of Finance has announced a draft law on the Elimination of Double Taxation and the Prevention of Tax Evasion and Avoidance, which proposes to include in the Lithuanian legal system the solutions for the avoidance of double
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Lithuania proposes stricter penalties for failing to submit tax information
The Lithuanian Ministry of Finance has published a draft law on 9 October 2024, amendments to the Code of Administrative Offences, aimed at imposing administrative penalties for failure to submit required information. These changes are designed to
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Lithuania approves income, capital tax treaty with Andorra
The Lithuanian government has approved the income and capital tax treaty with Andorra on 11 September 2024.This agreement aims to eliminate double taxation on income and capital, fostering closer cooperation between the tax administrations of both
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Lithuania moves towards full implementation of Pillar Two global minimum tax
Seimas, the Lithuanian parliament is reviewing a draft law to fully implement the Pillar Two global minimum tax, in line with Council Directive (EU) 2022/2523 of 14 December 2022. According to the draft, the law for full implementation is set to
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Lithuania: Social Democratic Party proposes higher corporate income tax, luxury asset tax
Lithuania’s Social Democratic Party Vilija Blinkevičiūtė, announced her party's tax reform plans in anticipation of the upcoming election on 24 September 2024. She stated that if her party comes to power after the forthcoming parliamentary
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Lithuania: President approves law to end tax treaty with Russia
Lithuania’s President, Gitanas Nausėda, approved a draft law for terminating the 1999 tax treaty with Russia, which was submitted to the parliament for consideration on Monday, 16 September 2024. According to the treaty's stipulations, a
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OECD: Report on Simplified Peer Review of Lithuania under BEPS Action 14
On 16 September 2024 the simplified peer review report on Lithuania was issued under Action 14 of the project on base erosion and profit shifting (BEPS). Members of the OECD Inclusive Framework have committed to implementing the minimum standard
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Lithuania, Taiwan sign income tax treaty
On 3 September 2024, Lithuania's Ministry of Economy and Innovation announced the signing of an income tax treaty with Taiwan, which occurred in August. This treaty marks the first formal agreement of its kind between Lithuania and Taiwan, aimed at
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Lithuania considers VAT rule amendment for small businesses
Lithuania’s parliament (Seimas) has introduced a draft law amending the VAT Law to alleviate the VAT compliance burden on many small businesses and provide a tax break for B2C services, allowing them to exclude VAT from their pricing. The
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Lithuania publishes VAT exemption guidelines for educational services
The Lithuanian tax authorities published a guidance on VAT exemptions applicable for educational and training services. This comprehensive document specifies the VAT exemption criteria for services provided by educational institutions, including
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Andorra ratifies income, capital tax treaty with Lithuania
Andorra has announced that it has ratified its income and capital tax treaty with Lithuania in its Official Gazette on 6 August, 2024. The treaty is set to take effect once the necessary ratification instruments are exchanged, with its provisions
See MoreIMF Issues Report on the Economic Situation of Lithuania
On 24 July 2024 the IMF issued a report following discussions with Lithuania under Article IV of the IMF’s articles of agreement. The Lithuanian economy has begun a recovery with lower inflation reflecting lower commodity prices, tighter
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