Lithuania

Overview

Last reviewed - 27 July 2020

Lithuania, located in Eastern Europe along the Baltic Sea, is bordered by Latvia to the north, Belarus to the south and east, Poland to the south, and Russia (Kaliningrad district) to the southwest. The capital of Lithuania is Vilnius. The official language is Lithuanian, and the currency is the euro (EUR).

On 11 March 1990, Lithuania declared its independence. Lithuania gained membership in the World Trade Organization (WTO) in May 2004 and joined the North Atlantic Treaty Organization (NATO) and the European Union (EU) in the spring of 2004. Lithuania joined the Eurozone in 2015. As of 5 July 2018, Lithuania is a member of the Organisation for Economic Co-operation and Development (OECD).

Lithuania has strong trading relations not only with its Central and Eastern European neighbours (Poland, Latvia, Belarus) but also with the United States, Russia, Germany, Kazakhstan, and China. The government of Lithuania continues a high-profile campaign to attract foreign investment and to develop export markets. In 2019, the gross domestic product (GDP) of Lithuania grew by 3.9%. For 2020, it is expected to decrease by 9.7%. The commercial environment is generally friendly to foreign companies, and most of the EU directives are implemented into the Lithuanian legislative system.

Lithuania has a developed private-enterprise economy that is actively growing due to an advantageous geographic location in Eastern Europe, highly developed transport connections, a modern seaport, IT network, and a highly educated, but comparatively cheaper, labour force. The Lithuanian economy is oriented into manufacturing and service industries, including food, the petroleum and chemical industry, information technology, financial services and service centres, transportation, construction, biotechnologies, research and development (R&D), and tourism.

PwC established its office in Lithuania in 1993 and currently employs more than 180 professionals. For over 25 years, PwC Lithuania has provided assurance, actuarial, advisory, tax, legal, and accounting services. Our clients include both multinational corporations and large local companies. PwC has a network of tax specialists both in Lithuania and all over the world. Our tax advisors in Lithuania offer a wide range of services and advise on all aspects of Lithuanian, EU, and international taxation. In addition to providing advice in English, Lithuanian, and Russian, our team can coordinate any foreign and Lithuanian tax aspects to provide an integrated solution and a single point of contact. This balances Lithuanian and foreign tax benefits and risks, providing the client with integrated options.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

15

Corporate income tax (CIT) due dates
CIT return due date

By the 15th day of the sixth month of the following tax period.

CIT final payment due date

By the 15th day of the sixth month of the following tax period.

CIT estimated payment due dates

The advance CIT must be paid no later than the 15th day of the last month of the respective quarter.

Personal income tax (PIT) rates
Headline PIT rate (%)

32 (see Lithuania's individual tax summary for rates for individual activity income and other non-employment-related income).

Personal income tax (PIT) due dates
PIT return due date

1 May (for annual PIT return)

PIT final payment due date

1 May (for annual PIT return)

PIT estimated payment due dates

Monthly withholding

Value-added tax (VAT) rates
Standard VAT rate (%)

21

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA;

Non-resident: 15 / 10 / 10 (0 / 0 / 0 may be achieved if certain conditions are met)

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

20

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

10

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.