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Lithuania - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
The normal profit tax rate is 15%.
0% rate applies to companies manufacturing agricultural products and specialised enterprises rendering services to agriculture if such enterprises derive more than 50% of their receipts from such activities. A 13% profit tax rate will be applied to all entities the gross income of which during the taxable period is less than LTL 500,000 (EUR 144,810) and the number of employees does not exceed 10, except for certain cases.
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Taxe rate on long-term capital gains |
Capital gains are included in taxable profit and are subject to tax at the regular profit tax rate.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends, received and paid by Lithuanian entities, as well as other income received as a result of profit distribution, are subject to taxation at the 15% rate. Dividends paid by a Lithuanian entity to a foreign entity wherein the foreign entity that receives dividends continuously (for at least 12 past months, including the moment of distribution of dividends) owns more than 10% of voting shares (interest) are not subject to taxation. The said provision is not applicable when the foreign entity that receives dividends is registered or otherwise organised in purposive territories (tax havens). This provision is also not applicable when the taxable profit of the Lithuanian entity that pays dividends is not subject to taxation at the 15% or 13% tax rate.
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Tax rate on branches |
Branches are taxed for the corporate tax as any other companies.
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Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
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Income tax rate |
Resident individuals are taxed on their worldwide income; non-residents are taxed only on Lithuanian-source income, including foreign source income derived from a fixed base in Lithuania. An individual is resident if having a permanent home in Lithuania, or staying in Lithuania for 183 days in a tax year or 280 days in two consecutive tax years, including at least 90 days in each of the two years. A Lithuanian national employed by the Lithuanian government is always regarded as resident. Individual income tax is charged at a flat rate of 33%, but the government plans to reduce this to 30% in 2006, 27% in 2007 and 24% in 2008. There is a reduced 15% rate applicable to certain types of income, including income from distributed profits, rent or sale of property, creative activities and other individual activities.
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VAT rates
Standard rates |
The base rate is 18%.
However, a superior rate applies to others products, 18% for luxuries, alcohols and spirits, tobacco etc....
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Reduced rates |
Supply of medical & veterinary services are exempt from VAT w.e.f 1 January 2001. A reduced rate of 5% will be applied to 'environmentally friendly' foodstuffs; newspapers and magazines and medicines. There is also a higher reduced rate of 9%
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Other important taxes
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Name of tax |
Rate |
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Road tax
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0,1% to 0,5%
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Excise duties
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10% to 40%
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Successions and donations
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0% to 20%
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Last modified in
January 2003
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