In Lithuania are applied following major business taxes:

Corporate profit tax 0-15%
VAT 21%
Dividends (witholding tax) 0-15%
Personal income tax 15%
Social security tax 9% paid by employee
30.98% paid by employer
Real estate tax 0,3-3%

Other favourable tax conditions available to foreign companies:

  • 0% corporate income tax for six years in free economic zones.
  • If they meet certain conditions, entities can reduce their taxable profit up to 50% providing they are carrying out an investment project into qualifying assets.
  • Expenses incurred by companies carrying out R&D projects can be deducted x3;
  • 0% withholding tax on interest when the recipient of interest is established in the European Economic Area (EEA) or a country with which Lithuania has signed a treaty for the avoidance of double taxation;
  • 0% withholding tax on royalties paid to related parties meeting requirements of the EC Interest and Royalty Directive;
  • 0% percent withholding tax on dividends distributed to a foreign/Lithuanian entity where the recipient has held not less than 10% of voting shares for a continuous period of at least 12 consecutive months;
  • 0% corporate income tax on dividends received from EEA countries if the dividends were distributed from profits which were subject to corporate income taxation;
  • Advanced Pricing Agreements (APAs) and Binding Rulings available as from 1 January 2012;

For more information about taxation in Lithuania, please visit website of State Tax Inspectorate.

Information Source:
Invest Lithuania