IMF Report Considers Fiscal Policy in Lithuania

June 07, 2022

On 7 June 2022 the IMF published a report following discussions with Lithuania under Article IV of the IMF’s articles of agreement. Before the Ukraine war began, Lithuania’s economy was recovering strongly. A recession was avoided in 2020 by

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Lithuania publishes form for reportable cross-border arrangements

February 10, 2022

On 17 January 2022, the State Tax Inspectorate issued Order No. VA-7 of 14 January 2022, amending the rules for annual reporting on the use of reportable cross-border arrangements for DAC6. The order introduces the PRC914 notification form and

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Lithuania adopts important tax law changes

January 18, 2022

On 7 December 2021, the Lithuanian Parliament adopted several important amendments to the Law (No.IX-675) on the Corporate Income Tax of the Republic of Lithuania. The law proposed the following measures:  Effective from 1 July 2022, the

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OECD: Stage Two Peer Review Report on Lithuania’s compliance with BEPS action 14

July 30, 2021

On 26 July 2021 the OECD issued a stage two peer review report on Lithuania in relation to action 14 of the action plan on base erosion and profit shifting (BEPS). Action 14 of BEPS is concerned with making dispute resolution mechanisms more

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Lithuania: Government approves the revised budget support measures for COVID-19

June 08, 2021

On 26 May 2021, the Lithuanian government has approved the revised draft State budget for 2021 including certain support tax measures due to COVID-19 pandemic. Business that incurred losses in the period 2020 can utilize losses to offset taxable

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Lithuania announces tax relief measures concerning second wave (COVID-19)

November 16, 2020

On 7 November 2020, the Lithuanian government ordered a “lockdown” in response to the “second wave” of coronavirus (COVID-19) cases. There are also tax relief measures in response to the coronavirus (COVID-19) pandemic in terms of tax

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Lithuania publishes new transfer pricing requirements

November 04, 2020

On 19 October 2020, the Ministry of Finance in Lithuania published new transfer pricing documentation requirements. The new requirements for transfer pricing documentation correspond to the recommendations of OECD base erosion and profit shifting

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Lithuania: Parliament adopts new incentive for large scale FDI projects

October 30, 2020

The Parliament of Lithuania has approved a new incentive for large investment projects in any area of Lithuania.The new package of laws offers tax incentives and cuts the red-tape. Large-scale investment project that meets the

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Lithuania defers MDR reporting deadlines for six months

August 13, 2020

On 30 July 2020, the Lithuanian State Tax Inspectorate released amendments to the Mandatory Disclosure Regime (MDR) rules to introduce a six-month postponement of the European Union (EU) Directive on Mandatory Disclosure and Exchange of

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DAC6 Updates: Optional deferral of DAC6 reporting deadlines

July 30, 2020

On 24 June 2020, the European Council reached agreement on an optional 6-month postponement to the reporting deadlines for relevant taxpayers under EU Directive 2018/822 (DAC6), and a delay to the exchange of information under

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COVID-19: Lithuania extends tax-related compliance until 30 March 2020

March 21, 2020

The Lithuanian government and tax authorities announced certain tax-related relief measures in response to the coronavirus (COVID-19) pandemic. Regarding corporate income tax, the deadline for filing advance corporate income tax returns and

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Lithuania: Parliament approves higher corporate income tax for banks

December 25, 2019

On 18 December 2019, Lithuanian lawmakers passed higher corporate tax for banks from January 2020. Higher corporate tax rate of 20% will apply to bank profit exceeding 2 million euros. Banks, like other legal entities in Lithuania, are now taxed at

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Lithuania: Parliament adopts draft bill to increase tax rate and threshold for corporate

December 10, 2019

In October 2019, the Lithuanian parliament adopted two draft bills that would increase the threshold for cash accounting and increase the corporate tax rate. The bill no. XIIIP-4115 which contains amendments to increase threshold for using cash

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Lithuania proposes amendments to the CITL

December 02, 2019

On 31 October 2019, the parliament proposed a Bill (No. XIIIP-4116) to amend the Corporate Income Tax Law (CITL). The proposal includes the following measures:   The taxable profit of a Lithuanian entities and a Lithuanian permanent

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Lithuania further changes TP documentation rules

August 21, 2019

On 12 August 2019, the tax authorities released the new transfer pricing (TP) rules, which will apply from 2019, in addition to the previously announced new TP rules. The tax authorities also include the following TP measures: Abolishing the

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Lithuania implements EU Directive on mandatory disclosure rules

August 14, 2019

On 30 July 2019, the President signed the primary legislation implementing the European Union (EU) Directive on the mandatory disclosure and exchange of reportable cross-border tax arrangements (referred to as DAC6 or the Directive) into

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Lithuania implements EU Directive on Dispute Resolution

August 03, 2019

On 11 July 2019, Lithuania has published Law No. XIII-2310  in the Official Gazette, which includes measures for the implementation Council Directive (EU) 2017/1852 of 10 October 2017. This includes rules to ensure effective resolution of

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Lithuania announces tax amnesty deadline

January 15, 2019

On 10 January 2019, the State Tax Inspectorate of Lithuania announced the deadline for individuals and entities to report undeclared income and pay taxes for 2014-18 tax years without penalties or interest. For declared income, the tax should be

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