Lithuania

Corporate - Other issues

Last reviewed - 27 July 2020

Foreign Account Tax Compliance Act (FATCA) agreement with the United States (US)

Lithuania signed an intergovernmental agreement (IGA) with the United States under the framework of FATCA. Lithuania and the United States will exchange information about the accounts of foreign (US or Lithuania, respectively) residents held in local financial institutions or local branches of foreign financial institutions.

Implementation of base erosion and profit shifting (BEPS) provisions

The OECD has announced a package of BEPS recommendations aiming to increase transparency of international taxation and prevent tax evasion and aggressive tax planning. Many OECD countries, including Lithuania, have already started shifting certain provisions related to implementation of the BEPS recommendation package into their tax legislation. 

Common Reporting Standard (CRS)

Information disclosure requirements related to international transparency movements (i.e. Common Reporting Standard) that has been adopted into national law state that if certain conditions are met, financial market participants are required to provide the tax authorities with information on their clients’ accounts (both individual and legal entities), such as account turnover and year-end balances, interest due and debt obligations, trade in securities, insurance premiums, pension insurance premiums, and other details. Moreover, legal entities in Lithuania are required to submit information on services acquired from foreign companies (which partially or entirely are provided in Lithuania), where the value of the transaction or several transactions made with the same foreign entity within a year is EUR 15,000 or higher.