Corporate income tax (CIT) tax base in Lithuania
The tax base of a Lithuanian entity shall be all income earned in the Republic of Lithuania and foreign countries, which is sourced inside and outside the Republic of Lithuania.
The income of a Lithuanian entity shall also include, in accordance with the procedure laid down in LAW on CIT of Lithuania, the positive income of its controlled foreign entity or part of such income. The income of a Lithuanian entity (European Economic Interest Grouping) shall also include, in accordance with the procedure laid down in LAW on CIT of Lithuania of this Law, the income of the relevant European Economic Interest Grouping.
Financial and tax year in Lithuania
The financial and tax year in Lithuania coincide with the calendar year. However, a different tax year may be established taking into account the peculiarities of the taxpayer’s activity. A taxpayer, upon the consent of the Tax Inspectorate, may have a different 12-month tax year, if this is necessary due to the seasonal nature of activity or if the group, to which the taxpayer belongs, applies a tax year different from the calendar year.
An enterprise with gross income below EUR 300,000 during a tax year and with the average number of employees not exceeding 10 has the right to apply a 5% CIT (the standard rate is 15%). A non-profit company with income from business activities not exceeding EUR 300,000 per tax year has the right to apply zero CIT rate to the amount of EUR 7,250 and a 15% CIT rate to the remaining amount of taxable profit.