Lithuania, Taiwan sign income tax treaty
On 3 September 2024, Lithuania's Ministry of Economy and Innovation announced the signing of an income tax treaty with Taiwan, which occurred in August. This treaty marks the first formal agreement of its kind between Lithuania and Taiwan, aimed at
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Lithuania considers VAT rule amendment for small businesses
Lithuania’s parliament (Seimas) has introduced a draft law amending the VAT Law to alleviate the VAT compliance burden on many small businesses and provide a tax break for B2C services, allowing them to exclude VAT from their pricing. The
See MoreLithuania publishes VAT exemption guidelines for educational services
The Lithuanian tax authorities published a guidance on VAT exemptions applicable for educational and training services. This comprehensive document specifies the VAT exemption criteria for services provided by educational institutions, including
See MoreAndorra ratifies income, capital tax treaty with Lithuania
Andorra has announced that it has ratified its income and capital tax treaty with Lithuania in its Official Gazette on 6 August, 2024. The treaty is set to take effect once the necessary ratification instruments are exchanged, with its provisions
See MoreIMF Issues Report on the Economic Situation of Lithuania
On 24 July 2024 the IMF issued a report following discussions with Lithuania under Article IV of the IMF’s articles of agreement. The Lithuanian economy has begun a recovery with lower inflation reflecting lower commodity prices, tighter
See MoreAndorra Ratifies First Income Tax Treaty with Lithuania
The Andorran General Council ratified the income tax treaty with Lithuania. The treaty was signed on 17 April 2024. This is the first of its kind between the two countries. Tax treaty ratification is the formal process by which countries
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Lithuania: Parliament adopts state defence fund, increases corporate income tax and excise duties
Lithuania's parliament has approved a resolution to establish the State Defense Fund, but to achieve this goal, the parliament has raised the corporate tax rate and excise duties on alcohol, cigarettes and fuel, and enacted the Defence Fund
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Lithuania approves termination of tax treaty with Russia
The Lithuanian government approved a resolution to terminate the 1999 tax treaty with Russia on 26 June 2024. A law for the termination must now be submitted for parliamentary approval. Earlier, the Lithuanian government made public plans to
See MoreLithuania implements notification rules for Pillar Two global minimum tax
Lithuania has published Order No. 2024-11391 on 21 June, 2024, in the Official Gazette, detailing procedures for submitting mandatory information notices concerning the implementation of the Pillar Two global minimum tax under Council Directive (EU)
See MoreLithuania approves partial implementation of global minimum tax, sets new notification rules
Lithuania’s parliament approved Law No. XIV-2680, on 6 June 2024, which partially implements the Pillar Two global minimum tax under Council Directive (EU) 2022/2523 of December 14, 2022. This legislation includes postponing main provisions,
See MoreLithuania: Government approves state defence fund and tax increases
The Lithuanian government has approved a resolution to establish the State Defense Fund, accompanied by several tax increases. The measures, set to take effect on 1 January 2025, include extending the temporary solidarity contribution on banks
See MoreLithuania and San Marino sign tax treaty agreement
Officials from Lithuania and San Marino have finalised an income tax treaty on 17 May, 2024. This agreement, a first between the two nations, will come into force after the exchange of ratification instruments. This agreement will apply to
See MoreLithuania proposes law to enhance tax benefits for investors in foreign companies
The Lithuanian parliament is reviewing Draft Law No. XIVP-2226(2), which aims to broaden the definition of eligible shares for capital gains tax exemptions and loss carryforward from the sale of shares in foreign companies. Currently, these tax
See MoreLithuania: Government submits draft law Implementing Pillar 2 global minimum tax
Lithuania's parliament is reviewing a Draft Law No. XIVP-3533 to partially implement a global minimum tax. This aligns with their plan to delay some key parts of the tax until 2029. The delay is allowed by EU rules for countries with few large
See MoreLithuania sign MCAA to exchange information with respect to income earned on digital platforms
On 4 March 2024, Lithuania signed the multilateral competent authority agreement (MCAA) on the automatic exchange of information on income derived through digital platforms, according to an update published by OECD on 12 March 2024. The DPI-MCAA
See MoreLithuania updates its blacklist in various tax aspects
On 30 November 2023, Lithuania issued an order revising its list of selected territories (blacklist), incorporating Russia as a new addition. The blacklist plays a crucial role in various tax aspects, including Lithuania's CFC rules. List of
See MoreLithuania: MoF publishes draft Law on implementation of Pillar 2 Global Minimum Tax
On 27 October 2023, the Lithuanian Ministry of Finance (MoF) published a draft law for the partial implementation of the Pillar 2 global minimum tax in accordance with EU Council Directive 2022/2523 of 14 December 2022. The proposed
See MoreLithuania takes steps to implement Pillar 2 global minimum tax
On 8 September 2023, the Ministry of Finance arranged a meeting with stakeholders to discuss the transposition of Pillar 2 global minimum requirements into Lithuanian law. As per an announcement during the meeting, Lithuania intends to delay the
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