Lithuania: Parliamentarians propose corporate tax amendments to boost green investments
Lithuania’s members of the parliament submitted draft amendments to the Corporate Income Tax Law (Project No. XVP-260) on 11 November 2025, aiming to expand investment incentives and extend relief periods until 2030. The draft includes a
See MoreLithuania: Two-thirds of cash registers reports to VMI
Lithuania’s State Tax Inspectorate (VMI) stated on 10 November 2025 that around 75% of cash registers are now transmitting revenue data to i.EKA. Out of 19,000 small business operators, about 15,000 are submitting data, while 13,000 have yet to
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Lithuania to introduce luxury car tax from 2026
Lithuania published a draft law proposing a luxury tax on high-powered cars on 29 October 2025. The tax will apply to M1-class vehicles with engines exceeding 150 kW, calculated as a percentage of the vehicle’s value: 1% for engines between 151
See MoreLithuania: VMI updates guidance on dividend tax implementation
Lithuania’s tax authority, the State Tax Inspectorate (VMI), has published an updated commentary on the Corporate Income Tax Law on 29 October 2025, explaining how the new 17% dividend tax rate will take effect from 1 January 2026. The revised
See MoreLithuania: MoF presents draft budget, expands list of corporate tax exempt entities
Lithuania’s 2026 draft Budget proposes halting the planned increase in CO2 excise duty on diesel and introducing a corporate tax exemption for the National Development Bank. Lithuania’s Ministry of Finance has presented the 2026 draft Budget
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Lithuania extends tonnage tax regime for shipping companies
The amendment specifically revises Article 381, paragraph 5, which governs the eligibility and application of this alternative corporate tax method. The Ministry of Transport and Communications of Lithuania published an amendment to its Corporate
See MoreLithuania: VMI launches automated excise tax declaration wizard
From 1 September, the system transferred data automatically, simplifying declarations and reducing manual input. Lithuania’s State Tax Inspectorate (VMI) has introduced a new wizard system for submitting excise tax declarations. The tool
See MoreLithuania: VMI updates crypto reporting rules
Under Article 55 of the Law on Tax Administration (MAĮ) and the Law on the Bank of Lithuania, certain entities must notify the VMI of all opened and closed accounts within three business days, using an XML format. Lithuania’s State Tax
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Lithuania: State Tax Inspectorate clarifies DAC6 reporting rules
The State Tax Inspectorate of Lithuania published an updated commentary on 13 October 2025 regarding Article 61-2 of the Law on Tax Administration, which implements the EU Amending Directive 2018/822 (DAC6), requiring reporting of certain
See MoreLithuania: Government approves draft order for crypto-asset service providers, financial institutions under DAC8
Lithuania approved DAC8 rules imposing new reporting and due diligence obligations on crypto-asset providers and financial institutions from January 2026. The Lithuanian government has approved a draft order implementing Council Directive (EU)
See MoreLithuania imposes fines for crypto reporting, account disclosure breaches
Lithuania’s parliament is introducing strict administrative fines for crypto-asset service provider non-compliance, failures to provide accurate information to tax authorities, and breaches of accounting, reporting, and inspection procedures, with
See MoreLithuania adopts excise tax on sweetened drinks from 2026
Lithuanian Parliament approved an excise tax on sweetened drinks from 1 January 2026 to promote healthier consumption and fund the State Defence Fund. The Lithuanian Parliament (Seimas) has adopted amendments to the Law on Excise Duty,
See MoreLithuania tax authority revises guidance to clarify corporate tax rates
From 2026, Lithuania will set the corporate income tax rate at 17% for local entities and PEs, apply a 10% flat tax to certain income of foreign entities without a PE, and allow small businesses under EUR 300,000 annual revenue to pay 0% tax for the
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Pakistan, Lithuania sign income tax treaty
The agreement aims to prevent double taxation on income and capital between the two countries while addressing tax avoidance and evasion issues. Pakistan’s Foreign Ministry announced, on 24 September 2025, that Pakistan and Lithuania signed an
See MoreLithuania: Parliament reviews investment incentive for select municipalities
Lithuania plans to reduce taxable profit for companies investing in designated municipalities, allowing up to a 100% deduction on eligible fixed asset costs from 2026. The Lithuanian parliament (Seimas) is reviewing a draft bill proposing a
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Lithuania implements DAC8 and APA rollback in tax law amendments
Lithuania has amended its tax law to implement DAC8, APA rollback, and update reporting, VAT, GDPR, and penalty rules, which take effect on 1 January 2026. Lithuania adopted amendments to the Law on Tax Administration on 30 June 2025, which
See MoreLithuania extends corporate income tax exemption for large-scale investment projects
Under the amended Corporate Income Tax (CIT) Law, companies undertaking qualifying projects may receive tax relief for up to 20 tax years. Lithuania has extended its corporate income tax exemption for large-scale investment projects under a new
See MoreLithuania: Parliament approves loss carryforward clarification as part of tax reform package
Lithuania’s parliament has approved changes to loss carryforward rules, capping annual use at 70% of taxable income from 2026, with exceptions for certain low-rate taxpayers, as part of a broader tax reform to support the Defence Fund. The
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