Corporate income tax

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Companies’ profits in Lithuania are generally subject to 15 percent corporate income tax (hereinafter – CIT). Tax base of the Lithuanian entity shall be all income derived in Lithuania and foreign states whereas the tax base of the foreign entity shall be only the income derived from activities performed through the permanent establishment in Lithuania as well as certain type of income sourced in Lithuania.

In general, there is a number of attractive CIT incentives for businesses in Lithuania. Therefore, a team of tax experts at Rödl & Partner Lithuania is glad to assist the clients while implementing CIT incentives, e.g.:

• Tax incentives for investments to scientific R&D
• Tax incentive for investments to technological renewal
• Tax incentive for production of a film or part thereof in Lithuania.

There are multiple other ways and solutions in order to pay the corporate income tax in a most efficient way. Therefore, depending on the needs of a client, our assistance may range from the advice on ongoing tax queries to the complex assignments such as finding innovative solutions to complicated tax problems and representation the clients at the administrative courts.

CIT advisory services by Rödl & Partner Lithuania:

• Advisory services for all ongoing CIT queries of daily business, including recognition of income and expenses, attribution of costs to tax deductible expenses, partly deductible expenses and non-deductible expenses
• Application of various tax incentives
• Identification of corporate income tax optimization possibilities
  
• Obtaining written explanations, confirmations and/or binding rulings from the Lithuanian tax authorities
• Dealings with tax authorities of Lithuania: assistance in discussions with the tax authority during tax audits and investigations, filing appeals or statement of claims
• Consulting on avoidance of double taxation
• Assistance in preparation and submission of returns and reports
• Existence and registration of permanent establishments (PE) of foreign entities in Lithuania
• Reviewing and evaluating of reorganizations, liquidations, business transfers and similar situations from CIT purposes.