Page 36 - CEE Tax Guide 2025

Lithuania

UAB Forvis Mazars Lithuania Tax
Konstitucijos av. 18B,
Vilnius, Lithuania
Phone: +370 615 44 719
www.forvismazars.com/lt

Corporate taxes and other direct taxes Under certain conditions there is no withholding tax
on dividends, interest, or royalty paid by a Lithuanian
The general rate for corporate income tax is 16% company to a foreign company. Lithuania has
in Lithuania. An incentive corporate income tax rate a wide international treaty network with more than
of 6% is applied to small companies with an annual 58 double tax treaties.
turnover of up to EUR 300,000 and with no more
than 10 employees. Small companies can apply a 0% The standard withholding tax rate on dividends 16%.
corporate income tax rate for their first financial year.
Companies are also subject to two types
In Lithuania, the ordinary losses incurred may of taxes on capital:
be carried forward to the subsequent taxable periods
for an unlimited time, as long as the entity continues • Immovable property tax: tax on property
the activities that generated the losses. The amount deemed to be immovable by law and located
of losses carried over to the subsequent taxable in Lithuania (buildings and constructions,
periods is limited to 70% of taxable profit for the unfinished constructions excepted). The annual
corresponding taxable period. The 70% limit does not tax rate varies from 0.5% to 3% of the taxable
apply to small companies. Capital losses associated value of immovable property. Tax rates are set
with the transfer of derivative financial instruments by municipalities according to the territory where
and securities may only be carried forward for 5 years the immovable property is located. The tax period
and can only be covered from future capital gains. is a calendar year.
• Land tax: tax on land owned in Lithuania,
Transfer pricing in Lithuania to be paid by both resident and non-resident
entities and individuals. The tax rate varies from
Arm’s length principle Since 2004 0.01% to 4% of the taxable value of the land.
Documentation liability Since 2004 Tax rates are set by municipalities and depend
on the location of the land. The tax period
APA Since 2012
is a calendar year.
Country-by-Country Since 2016
liability VAT and other indirect taxes

Master file-local file Since 2019 The general rate is 21%, the reduced rates are 9%
(OECD BEPS 13)
applicable (e.g. books, central heating, public transportation,
tourist accommodation, cultural activities) and
Penalty
5% (e.g. medicine, journals, newspapers, and
lack of documentation EUR 1,820—5,590 technical aids for the disabled). The options/limits
(EUR 3,770—6,000 based on the EU Directive are presented within the
for recurrences)
VAT legislation.
tax shortage 20%—100% on tax
underpayment + Other types of indirect tax in Lithuania include excise
late payment interest duty, the environmental protection charge, and the
Related parties > 25% Direct or indirect control. data storage device tax.
Safe harbors Low value-added
services: 5% mark-up.

Level of attention paid 9/10
by Tax Authority

Central and Eastern European tax guide 2025 Forvis Mazars 36