Lithuania: VMI clarifies withholding tax on income from foreign entities
Lithuania's State Tax Inspectorate (VMI) has issued guidance on 20 October 2026, clarifying how income received by foreign entities from Lithuanian sources is taxed. Income earned through a permanent establishment is taxed at the standard
See More
Lithuania introduces additional reporting obligations under investment account tax regime
Lithuania’s State Tax Inspectorate (VMI) under the Ministry of Finance has introduced additional reporting obligations for permanent residents using the investment account tax regime through Order No. VA-69, issued on 16 October 2026. The order
See More
Lithuania: 2027 Budget prioritises national defence, social protection with no changes to tax rates
Lithuania’s government submitted the draft 2027 state budget to the Seimas on 16 October 2026, prioritising national defence, income growth and social protection while aiming to maintain sustainable public finances. The draft budget, designated
See MoreLithuania: STI issues guidance on 2027 excise duty rates
Lithuania’s tax authority, the State Tax Inspectorate (STI), which operates under the Ministry of Finance, has issued guidance on the excise duty rates that apply from 1 January 2027. The guidance was published on 16 October 2026 and signed by
See More
Lithuania: STI updates personal income tax rules for individual activities
Lithuania’s tax authority (STI) has updated its commentary on Article 18² of the Law on Personal Income Tax on 15 October 2026. The update reflects three laws passed in 2025: Laws No. XV-343, XV-680 and XV-681. From the 2026 tax year, the
See MoreLithuania: STI clarifies domestic VAT obligations for cross-border businesses
Lithuania’s State Tax Inspectorate (STI) has clarified that businesses required to register for VAT because of cross-border transactions with other EU Member States do not automatically have to charge and pay VAT on domestic sales, provided their
See More
Lithuania: VMI proposes wider participation exemption for foreign corporate interests
Lithuania's State Tax Inspectorate (VMI) has published a comparative draft document on its draft commentary page. It sets out amendments to Articles 12 and 30 of the Law on Corporate Income Tax (Pelno mokesčio įstatymas – PMĮ) and the official
See MoreLithuania: STI consults on extending participation exemption to foreign company interests
Lithuania's State Tax Inspectorate has initiated a consultation on 2 October 2026 by publishing the draft, which covers Articles 12 and 30 of the law. Under the draft, the term "share" would also include an interest in a foreign limited liability
See MoreLithuania consults draft commentary on 2026 personal income tax rules
Lithuania's State Tax Inspectorate published draft commentary on 28 September 2026 explaining the personal income tax rules that apply from 2026. Dated 28 September 2026, it is available on the State Tax Inspectorate website: document one and
See More
Lithuania: MoF proposes simplified investment account rules
Lithuania’s Ministry of Finance (MoF) had prepared draft amendments on 29 September 2026 to Article 12¹ of the Republic of Lithuania Law on Personal Income Tax (GPMĮ No. IX-1007) that would broaden and simplify the Investment Account
See More
Lithuania updates crypto-asset reporting rules under DAC8
Lithuania’s State Tax Inspectorate (VMI) had issued Order No. VA-63 on 24 September 2026, amending the framework established by Order No. VA-119 of 10 December 2025 for crypto-asset service providers reporting user data under the EU DAC8 directive
See More
Lithuania proposes additional 30% investment tax deduction
Lithuania has proposed amendments to Article 46¹ of the Law on Corporate Income Tax of the Republic of Lithuania (No. IX-675) on 14 September 2026, which would increase the maximum tax deduction available for qualifying investment projects from
See MoreLithuania proposes lottery tax rate cut
Lithuania’s government has published draft amendments to the Republic of Lithuania Law on Lottery and Gaming Tax No. IX-326 that would lower the tax rate applied to the lottery tax base from 18% to 10%. The draft amendments, dated 11 September
See More
Albania: Council of Ministers approves tax treaty with Lithuania
The Albanian Council of Ministers approved an income and capital tax treaty with Lithuania on 2 September 2026. Signed on 25 May 2026, the agreement seeks to prevent double taxation and fiscal evasion between the two nations. The treaty will
See MoreLithuania: MoF unveils VAT gap measures
Lithuania’s Ministry of Finance has outlined measures to reduce the country’s VAT gap and shadow economy, with a target of bringing the VAT gap down to no more than 10% in 2026–2027 and 9% in 2028. Minister of Finance Taurimas Valys
See MoreLithuania: VMI updates treaty tax relief forms
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
See MoreLithuania proposes framework for assessing R&D activities under corporate tax incentives
Lithuania has proposed amendments to the Law on Corporate Income Tax that would establish a legal framework for assessing whether activities qualify as research and experimental development works (R&D) for the purposes of applying corporate
See More
Lithuania proposes 200% corporate tax deductions for investments in select advanced technologies
Lithuania is proposing a 200% tax deduction for companies investing in certain advanced technologies under draft amendments to the Law on Corporate Profit Tax published on 25 August 2026. The proposal would allow entities implementing investment
See More