Lithuania issues a proposal to amend the Law on Corporate Income Tax
The Ministry of Finance of Lithuania issued a proposal to amend the Law on Corporate Income Tax on 3 September 2015. If approved by parliament the amendments will enter into force on 31 December 2015. Under the proposed amendments, anti-abuse rules
See MoreLithuania: IMF comments on fiscal policy
The IMF has published a report of its preliminary findings following a visit to Lithuania for consultations on economic policy. The report finds that Lithuania’s economic growth in recent years has been among the strongest in Europe. Growth is
See MoreKuwait and Lithuania: Income Tax Treaty Approved
A pending income tax treaty with Lithuania was approved by Kuwait’s National Assembly on January 27, 2015. Both countries apply the credit method to eliminate double taxation. Under the treaty, dividends are taxable at a maximum rate of 5% if the
See MoreCyprus-Lithuania Double Tax Treaty Enters Into Force
The double tax treaty between Cyprus and Lithuania entered into force on 1 January 2015, which was signed on June 2013. Under the treaty the following withholding taxes will apply: Dividend: 0% if the recipient is the beneficial owner of at least
See MoreLithuania Accepts the Amendments to the Law on State Social Insurance
The Lithuanian parliament adopted the amendments to the Law on State Social Insurance on 11 December 2014. If the President approves the amendments, they will enter into force on 1 January 2015. According to the amendments, the taxable base for
See MoreIncome Tax Treaty between Kuwait and Lithuania
The Kuwait and Lithuania income tax treaty was signed on April 18, 2013.The treaty will enter into force after both countries exchange ratification instruments. The requirements of the treaty will apply from 1st January, 2015 after the agreement
See MoreLithuania signed FATCA agreement with United States
Lithuania and the United States signed a Foreign Account Tax Compliance Act (FATCA) Agreement, on August 26, 2014. Under the agreement, Foreign Financial Institutions (FFIs) in Lithuania will report the information required under FATCA about U.S.
See MoreLithuania: Simplified VAT registration from September 2014
Lithuania has plans to cut the amount of application forms to be filled out for VAT registrations. The new procedure has reduced the application process from three forms to a single application, an FR 0388. In addition, companies may apply for a VAT
See MoreLithuania: modified VAT registration rules
The Ministry of Finance amended the Rules on Registration to the VAT Register/Deregistration from the VAT Register by way of Order No. VA-47 on 30 June 2014, under the amendments, the VAT registration form was simplified. The new registration form
See MoreLithuania: Approved notification form for investment projects
The head of the State Tax Inspectorate under the Ministry of Finance approved the form PLN210 and its appendices by way of Order VA-34 on 5 June 2014. From 1 January 2015, companies that are preparation to take advantage of the investment project
See MoreUAE – Lithuania: DTA approved
The Cabinet of United Arab Emirates has approved the Double Taxation Agreement (DTA) with Lithuania on June 9,
See MoreLithuania-UAE: DTA approved by UAE
The United Arab Emirates' cabinet has allowed the Lithuania - United Arab Emirates Income Tax Treaty on June 9,
See MoreLithuania: IMF Looks At New Revenue Sources
Lithuania’s tax revenue as a percentage of GDP is currently one of the lowest in Europe. The IMF considers that Lithuania could increase government revenues by making improvements to tax on wealth and capital and by broadening the scope of value
See MoreLithuania – VAT and excise tax updates
Lithuania is supplying additional explanatory notes on the VAT law so as to given guidance to taxpayers involved in mixed activities and to give practical case details on derivatives. If taxpayers refer to notes provided by the tax authorities this
See MoreLithuania – Tax card for 2014
Lithuania has prepared a “tax card” that provides an easy-to-read overview of the tax system in Lithuania for 2014. This provides a convenient reference for businesses operating in
See MoreLithuania: Increase in excise duty on alcohol
Lithuania's Prime Minister has confirmed that the only tax change currently planned is a change to excise duty on alcohol, which will be phased in over three years. The proposal was recently supported by the ruling coalition's Political Council, to
See MoreLithuania : Loss carry forward limitations, extended incentives and reduced VAT rates
Losses carry forward limitations: Beginning in 2014, the ability of corporations in Lithuania to carry forward tax losses, for corporate income tax purposes, is limited. In calculating their corporate income tax for 2014 and subsequent tax periods,
See MoreLithuania – Regulation for VAT on credit, debit documents
An observation has been issued concerning provisions under Lithuania’s value added tax (VAT) law regarding credit notes and debit documents. The guidance describes as when: a condition to issue a credit VAT letter or a debit certificate
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