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, 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).