subject: Information Of Lithuanian Trade, Taxation, Tariffs And Vats For Businesses [print this page] Lithuania is currently ranked at 44 on global level in willingness of its people to adhere to disbursal of levies and duties as per several world renowned assessment agencies. Let us explore some aspects of Information about Lithuanian Trade, Taxation, Tariffs And Vats For Businesses.
All corporate and organizations based in Lithuania of incorporated in this Baltic state must adhere to tax payment schedule and duly submit and deposit levies on profits and capital gains achieved locally and in foreign operations. Deducting taxes that have been deposited in foreign countries that is not going beyond taxable limits is exempted.
Income and proceeds that are sourced from business in EEA member states or states having reciprocal tax agreements and treaties DTT with Lithuania are also exempted from domestic taxed in Lithuania.
The tax regime includes proceeds of companies incorporated in some other countries that accrued through permanent operations in Lithuania. Other proceeds that are bought under tax net include revenue generated through interests, dividends, royalties, funds generated through sale of landed properties and assets and annual disbursements made to members of board etc.
There is a prevalent comprehensive tax regime in the country and has been appropriately designed and defined to suffice for various heads and categories of operations and activities being conducted with economic objective within the country. A major chunk of tax revenues is sourced from various forms of corporate taxation. Lithuanian Corporate Taxation includes
Corporate profit tax
VAT
Dividends
Personal income tax
Employees social security tax**
Social security tax paid by the employer
Real estate tax
Corporate income tax has been generalized at 15% and is collected from
Taxable earnings of concerns and businesses with less than or 10 personnel and whose earnings are not beyond EUR 500000
Taxable earnings of concerns who earn from agriculture and related activities and quantum of their earning from these source constitute more than half of proceeds
Certain companies have been exempted from corporate taxes that include companies whose more than 40% personnel are qualified for social grants etc.
Companies investing in projects are eligible for deduction amounting to 50% from taxable earnings in amount expedited on procuring immovable assets to fulfill stipulations. Companies are also allowed to amortize their inputs into immovable assets through common procedure and deduct derived amount from taxable earnings (only in cases the expenditure pertains to 2009 - 2013 period). The costs that fall beyond the permissible 50% deduction can be carried on to next 4 years.
Other forms of Lithuanian Corporate Taxes like Vat, Personal Income Tax, Social Security Tax (employees and employers contribution have been fixed at specified rates i.e.
VAT 21%
Dividends - 0 % to 15 % (depending on case to case)
Personal income tax - 15 %
Employees social security tax 9 %
Social security tax paid by the employer - up to ration of 31%, 18 %
