What is the corporate income tax in Lithuania?

The standard corporate income tax (CIT) rate in Lithuania is 15%, however, if the annual income of a company does not exceed EUR 300 000, the CIT rate is only 5%. Generally, taxable income is any income received by a Lithuanian company from its local and worldwide activities. CIT is applied on taxable profits (all taxable income minus allowable deductions). The Law on CIT provides those allowable deductions to be all expenses required for a company to earn income. The Law also determines the exemptions and limitations applicable for attributing certain expenses as allowable deductions.

There are some types of activities which are exempt from corporate income tax completely, for example, investment funds and companies which hold an investment management license.

If you would like to find out about corporate income tax in your particular case, contact Nomad Law and book a free consultation with one of our tax specialists.