Lithuania considers draft order for public CbC Reporting
The Lithuanian parliament (Seimas) is currently considering draft Order 23-4588, which aims to introduce public Country-by-Country (CbC) reporting obligations in line with Directive (EU) 2021/2101. The draft Order specifies the required content of
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OECD: Reform Options for Climate Neutrality in Lithuania
On 24 April 2023 the OECD published a report outlining the reform options for Lithuanian climate neutrality by 2050. The report sets out the policy options that could be followed by Lithuania to reach its target for climate neutrality, taking
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Lithuania proposes a temporary solidarity contribution on the banking sector
On 9 March 2023, the Finance Ministry of Lithonia declared a proposal for the introduction of a temporary solidarity contribution on the banking sector. According to the proposal the key features of the proposal include: The temporary
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Lithuania publishes draft law to transpose public CbC reporting
On 7 March 2023, the government of Lithuania issued a draft law to transpose the EU Public Country-by-Country (CbC) Reporting Directive into domestic law. According to the Directive, the upcoming legislation will mandate multinational corporations
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Lithuania introduces windfall tax on electricity companies
On 23 December 2022, Lithuania published Law XIV-1680 in the Official Gazette for implementing a windfall tax and solidarity contribution in accordance with EU Regulation 2022/1854. The law includes following measures: applying a 90% windfall
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Lithuania gazettes law for implementation of DAC7
Lithuania has published Law No. XIV-1658 in the Official Gazette to amend the Tax Administration Law related, this includes amendments for the implementation of new rules on the exchange of information on income from digital platforms (DAC7). This
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Lithuania: MoF announces reduced interest rate on deferred tax payment
On 27 September 2022, the Lithuanian Ministry of Finance (MoF) published the Order No.1K-325 providing a reduced interest rate on deferred payment (tax loan agreements) of taxes and fines for administrative offenses. Usually, it is equal to 0.01%
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Lithuania approves draft bill relating to the VAT registration threshold for related persons
On 12 August 2022, the Lithuanian Parliament accepted for consideration Bill (No. XIVP-1915), relating to the VAT Law on Calculating the VAT Registration Threshold for Related Persons. Accordingly, when related persons carry out economic
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Lithuania amends the APA rules
Recently, the State Tax Inspectorate of the Ministry of Finance of the Republic of Lithuania revised the Lithuanian Advance Pricing Agreements (APAs), which came into effect on 31 March 2022. Among other changes, the amendments also provide for
See MoreIMF Report Considers Fiscal Policy in Lithuania
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
See MoreLithuania publishes form for reportable cross-border arrangements
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
See MoreLithuania adopts important tax law changes
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
See MoreOECD: Stage Two Peer Review Report on Lithuania’s compliance with BEPS action 14
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
See MoreLithuania: Government approves the revised budget support measures for COVID-19
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
See MoreLithuania announces tax relief measures concerning second wave (COVID-19)
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
See MoreLithuania publishes new transfer pricing requirements
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
See MoreLithuania: Parliament adopts new incentive for large scale FDI projects
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
See MoreLithuania defers MDR reporting deadlines for six months
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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