Lithuania

A company is a tax resident in Lithuania if it is incorporated there. It may also be subject to taxation if its activities create a PE for tax purposes or if it in Lithuania earns income subject to WHT in Lithuania. 

Permanent establishment (PE)

According to local legislation, a foreign company is deemed to have a PE in Lithuania when:

• it permanently carries out commercial activities in Lithuania in whole or in part
• it carries out its activities through a dependent representative (agent)
• it uses a building site or construction, assembly, or equipment objects, or
• it uses equipment or structures, including drilling installations and ships, for exploration or extraction of natural resources.

DTTs may establish different rules of PE recognition. According to domestic law, where there is a DTT, the provisions of the treaty take precedence.

A PE must be registered as a taxpayer with the tax authorities in the territory where its activities are carried out. Its profits are subject to CIT at the rate of 15% (16% from 1 January 2025).