Does the lessee always have a priority right to extend the Rent Agreement? Feb 28

According to the newest Case Law of Supreme Court of Lithuania in the civil case No. e3K-3-23-611/2018 (hereinafter – the Decision), the parties of commercial relations can agree in advance to refuse the priority right to extend the Rent Agreement. With the Decision, the Court noticed, that such refusal of priority right is legal and does not violate the principle of equality. Read more ›

Social security tax contributions from the minimum monthly salary Feb 14

From 1st January 2018 the amendments of Lithuanian Law of the Social Security Tax Contributions came into force. According to the amendment, companies should pay social security tax contributions for part-time employees, whose monthly salary is lower than the minimum monthly salary (hereinafter - MMS), currently the MMS gross amount EUR 400.
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New regulations of Lithuanian Law on Companies Jan 26

New regulations of Lithuanian Law on Companies entered into force at the end of year 2017 and at the beginning of year 2018.
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Personal income tax law changes from 2018 Jan 12

Below we shortly describe the main personal income tax (PIT) law changes which became effective from 1 January 2018.
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VAT legislation changes from 2018 Jan 10

We would like to inform you that on 1 January 2018 the following changes in VAT legislation came into force:

I.       5% reduced VAT rate is applied for non-compensated prescribed medicines. Until 1 January 2018 reduced 5% VAT rate could have been applied only to non-compensated prescribed medicines, which taxable value of outer packaging exceeds EUR 300.

II.     9% VAT rate is applied indefinitely for supply of heating to residential premises and supply of hot water.

III.   9% VAT rate is applied for accommodation services till 31 December 2022.
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Changes in the corporate income tax (CIT) legislation from 2018 Dec 29

Below we shortly describe the main CIT legislation changes which come into force on 1 January 2018. 
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Not genuine arrangements and risks that dividends may be taxed Dec 08

On March 2016 the Lithuanian State Tax Inspectorate (hereinafter - the STI) has renewed Art. 32 part 6 of the Lithuanian Corporate Income Tax Law and stated that dividends paid according to not genuine arrangements which main purpose or one of the main purposes were to receive taxing benefits, may be taxed, i.e. „participation exemption“ may not be applied. Based on the Corporate Income Tax „participation exemption“ may be applied and dividends may be exempt from tax if they are paid to entities which control not less than 10% of the company‘s shares for a period not shorter than 12 months.
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Lithuania has improved its ranking in the report „Doing business 2018“ Nov 24

Lithuania is among 20 the most business-friendly countries in the world according to the report „Doing business 2018“ published by the World Bank. Lithuania has reached 16th place, last year Lithuania was in 21st place.
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