Lithuania

Corporate - Corporate residence

Last reviewed - 27 July 2020

A company is resident in Lithuania if it is incorporated there or its activities create a PE for tax purposes.

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, 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%.