We would like to inform you that until July 1st, 2019 there is a one-time opportunity in Lithuania to declare and/or adjust taxes and be exempt from additional interest or penalties, i.e. so-called tax amnesty...
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A beneficial owner of a legal person is a natural person who:owns a legal entity, orwho manages it directly or indirectly with 25% and more share or more than 25% of ownership or voting rights,...
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minimum hourly salary will be EUR 3,39.minimum monthly salary will be EUR 555;These minimum amounts are already multiplied by coefficient 1,289, therefore additional procedures of conversation are not required starting 2019. Below is the table...
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Currently there are two types of taxes which are calculated from the salary stated in the employment agreement, i.e. „employee‘s taxes“ and „employer‘s taxes“:· „employee‘s taxes“ are taxes which are deducted from...
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Please note that the employee sent on a business trip has the right to choose accommodation / lodging place. He may decide it on his own if it is not agreed in advance with the...
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The most important changes are as follow:- some countries have been excluded from the list of maximum daily allowances (hereinafter - the List), as example: Paraguay, Jamaica, Republic of the Congo, Honduras;...
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Below we present the most common tax incentives Tax incentive Relevant to Main conditions 0% reduced rate of Corporate Income Tax Small companies on the first year of operation For 3 years, the company is...
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1. Without regard to number of employees working in the company:- in all companies where the workplace is monitored (i.e. video surveillance, checking of employee's electronic correspondence, etc.), the...
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In this Explanation, the State Tax Inspectorate states that not the taxpayers, but the third parties are guilty for overdue calculation and payment of tax of environmental pollution. Accordingly, taxpayers, on the initiative of the...
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Lithuania, according to the OECD recommendations, has adjusted about six dozen laws, especially in the areas of public enterprise management, anti-corruption, investment promotion and liberalization of the business environment. The OECD Council confirmed that all...
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As we now have fresh first-hand experience about establishing a new company in Belarus, we can confidently say that the process is quite easy and painless. The Belarusian authorities have done much to improve investment...
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There are two options for simpler and faster recruiting of foreigners - the inclusion of a company in the List of Approved Companies or recognition of the professions of employees working in the company insufficient...
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The chain transaction is considered a group of transactions, when not only the supplier and the customer participate, but also one or few intermediaries (i.e. the intermediary/intermediaries purchase the goods from the supplier and resell...
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5 September 2017 The Grand Chamber of the European Court of Human Rights (ECHR) ruled in case Nr. 61496/08, which has strengthened the protection of employee‘s privacy. In the case of Barbulescu v. Romania, the...
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In accordance with this Decision, the Court is changing the practice which was formed in the commercial relations, whereas the companies can agree on the priority right or its refusal from now. Under the mentioned...
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Social security tax contributions consist of two parts: employer’s (31,18% and 32.58% for fixed-term employment agreements) andemployee’s (9% or 11%). The obligation to calculate additional social security tax contributions from the MMS applies only to companies. ...
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Maximum amount of the shareholders of private limited liability company According to the changed Article 2 of Law on Companies, the limitations on the maximum amount of shareholders of private limited liability company is voided....
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I. Gifts and prizes from employers when value of prize or gift does not exceed EUR 200, are considered non-taxable income. Until 1 January 2018 only prizes from employees when value did...
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I. Newly established entities which fulfills the conditions detailed below may apply 0% CIT rate for the first year of the activity. The conditions are:a. average number of employees does...
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On November 2017 the STI has published the Commentary of the above-mentioned and stated the circumstances, which may be evaluated to determine when the arrangements are not genuine. Not genuine arrangements may be considered a...
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The World Bank acknowledged that Lithuania has
implemented positive reforms in four areas: dealing with construction permits,
getting electricity access, protecting minority investors and paying taxes.
Please find more information here:
http://ukmin.lrv.lt/en/news/doing-business-2018-lithuania-among-20-most-business-friendly-countries-in-the-world
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From 1st January 2018 the minimum monthly salary will be EUR 400 and the minimum hourly salary will be EUR 2,45. From 1st July 2017 the minimum monthly salary is EUR 380 and the minimum...
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The decision of the case needed clarification from the Lithuanian STI, because it contradicted the Lithuanian legislation, regulating 0% VAT rate application to the transportation services, when these services are provided to the freight forwarder,...
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If the Lithuanian Company is a part of MNE, which has an obligation to submit the CbCR, the Company should submit to the STI the following information by free form notification:whether the Company is the...
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If a company posts worker to Finland by an internal transfer within one group of companies for no longer than 5 working days, the notification about posted workers is not required. However, in case workers...
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Regulation implements the Data protection reform, which aims for a better protection of the personal data and privacy. The new rights of natural person have been established in this Regulation: a right to data portability....
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Below is a short description of the main changes: the rules were amended with the information regarding the STI working group, that deals with applications, i.e. the establishing of working group, decision making process and...
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From the 1st of August 2017 the social insurance contributions should be paid only from 50% of the royalty’s amount, if the author receives income not from his / her employer. We would like to...
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The Commentary clarifies that bribery may be considered not only as a direct transfer of funds to a relevant person but also other ways intended to affect some person. The STI emphasized that the expenses...
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The Court established, that transportation services related to the exportation / importation of goods should be treated as services which are directly related to the supplier or purchaser of goods. The Court’s ruling amends current...
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Based on the legislation, the MNE situated within the European Union (hereinafter - EU) or with operations in the EU with total consolidated revenue equal or higher than 750 million EUR should submit the CbCR...
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Will the employers be obliged to amend the existing employment contracts after NLC comes into force? The revision of the existing employment contracts is not necessary, it may be useful though. Leinonen team recommends the...
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According to the amendments, the following restrictions for debtor and person who takes over the tax arrears, were dismissed: to transfer tax arrears taken to the third person;to return taken tax arrears to the tax...
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Therefore, we would like to remind that Financial Statements shall be:prepared and confirmed by the General Meeting of Shareholders in 4 months after the end of the financial years; submitted to the Register of Legal Entities...
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The application should be filled in the Lithuanian language and could be submitted by e-mail, fax or e-services no later than 1 day before the business trip in Lithuania starts. The application form should contain:...
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The Court established, that the requirements for the purchaser to have the VAT number and to be registered in the VIES system are not essential conditions for the application of 0% VAT rate to the...
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It is recommended to check, whether there are obligations to submit
information regarding the goods transported to i.VAZ subsystem.
Rules of submission of the consignment note’s data to the i.VAZ
subsystem could be found:https://leinonen.lt/news/news-2016/submission-of-the-consignment-notes-data-to-i-vaz-system
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The Court has ruled that improper accountancy is equated to large carelessness, i.e. such acting does not correspond nor to careful, neither to circumspect behavior standards of the Director. The Court has noted that it...
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It is expected, that unemployment insurance contribution will be 1,6% (until 1 July 2017 1.1% rate is applied). Moreover, as from 1 July 2017 unemployment insurance contribution for time-limited work agreements will be increased twice...
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According to the updated requirements, information regarding transportation of goods could be submitted to i.VAZ subsystem by any person participating in the transaction (i.e. carrier, consigner or consignee) without any additional documents, i.e. power of...
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In case the Employee breaches a clause of confidentiality the Employer has a right to claim for the compensation of damages it has suffered. In order for the Employer to implement this right, the Manager...
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Below are provided the main aspects of the recommendations: When does the Company need to check its business partner?It is recommended to analyse the Company’s business partner’s economic activities, before acquiring/supplying goods or services to...
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The STI informed, that the opportunity to submit registers in easier and faster way is already available: data could be submitted by using the machine-to-machine services, i.e. automatically transfer registers to STI from company’s accounting...
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Below is a short description of the main changes: the parcel post, defined in the Lithuanian Postal Law (i.e. postal correspondence, parcel posts with weight under 50 kg or posts, which contain books, magazines and...
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The Commentary clarified, that taxable value of the outer package of the non-compensated prescribed medicines is the taxable value of the package after granting discounts. It is also noted, that the external package consisting of...
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Long-term debtor is a legal person, which meets all the following criteria:· is a VAT payer;· tax arrears declared are more than EUR 10.000 and not paid...
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· if goods or services are identified in gift voucher, then reimbursement for the gift voucher could be treated as an advance payment and the taxpayer has the right to choose, whether...
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Below is a short description of the main provisions. Creditor’s rights and obligations:· based on the Regulation, in case if a creditor does not have sufficient information regarding a debtor’s bank accounts...
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Norway plays a significant role in Group’s strategy, as it is an interesting market area for the companies established in Finland, as well as for other companies located where Leinonen Group operates. Also Norwegian companies...
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Below is an explanation regarding issuing VAT invoices for advance payments received and issuing “final” VAT invoice for the supply of goods/services.1. VAT invoice should be issued for advances payment received if such...
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The employers may receive compensation of 23,3% of calculated salary for:· the period till 12 months employing 18 – 29 years old people for the first time;· the period till...
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Below is a short description of the main changes, related to the finances of legal entities or their branches / representatives: According to the Code, the fine could be imposed in the amount from EUR...
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Making analysis of various VAT schemes of our Clients, we have noticed, that Clients do not take into account the negative tax consequences, related to the transferring of various goods from Lithuania to another EU...
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According to the Regulation, the following shall be regarded as immovable property: · any specific part of the earth, on or below its surface, over which title and possession can be created;· ...
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2016 2017 NTIA The formula of monthly NTIA NTIA = 200 – 0,34 x (Monthly salary – 350)* NTIA = 310 – 0,5 x (Monthly salary – 380)* The formula of annual NTIA NTIA = 2.400...
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Payments to the guarantee fund for periods till 31 December 2016 should be paid to the STI (payment code 1961). Taxpayers, who wrongly paid to the STI, can submit the application form FR0781 and get...
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Moreover, from 1 January 2017 the VAT Law amendments come into force, on the grounds of EU Regulation No. 952/2013 from 9 October 2013, which established the implementation of EU customs code. According to the...
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Previously, the company could use the tax incentive if it was registered in FEZ, had the capital investment of no less than EUR 1 million and not less than 75% of the company’s income were...
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Business trips to Lithuania The Law mentioned above is applied when an employee is posted to work temporarily in Lithuania:1. under a contract concluded by a foreign employer with a customer operating in...
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The bankruptcy administrator representing the bankrupting companies has purchased services (e.g., accounting, security of real estate, legal, electricity and others) which were essential and unavoidable while supervising the assets of the bankrupting companies and implementing...
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On the basis, that the new Labour Code is already adopted, the employers should review the documents of the company and amend them according to the provision of the new Labour Code. Therefore, we would...
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1. Is it obligatory for entities to submit the data from consignment notes to i.VAZ? There is an obligation to submit the data from consignment notes to the Lithuanian Tax Authority if all the...
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It is a pleasure to announce, that even 98% of Vilnius citizens have been satisfied with their lives in Vilnius. Vilnius has outrun other capitals of the European Union- Copenhagen (97%), Stockholm (97%), Tallinn (92%),...
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Below is the list of information which should be provided about the residents of Lithuania:· accounts balance on 31 December (if the sum of balances of all bank accounts held at the...
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Based on the Court’s decision, the Tax Administrator should not demand from the tax payers to incur disproportionate time and other resources costs in order to collect information about a credibility of its business partners....
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the tax returns are submitted by the Lithuanian natural persons;the electronic preparation of tax returns would create disproportionately huge administrative burden to the tax payer, e.g. applicable to the submission of tax returns by foreign...
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1. Social insurance contributions will be calculated from currently tax-free amounts: remunerations paid according to civil contracts to managers of small partnerships who are not members of the small partnership,bonus paid to the members...
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The State Tax Inspectorate is developing a smart tax administration system (further - i.MAS). Accordingly, taxpayers will be obliged to provide to the State Tax Inspectorate with more information on their activity. In April 2016...
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Economical situation in Lithuania is on the level that new foreign investments are quite active in our country. Even though the growth of the economy was just 1,6 % in 2015, forecast for this year...
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What is the threshold to follow procedures established by the legislation for transfer pricing documentation? What are tax litigation practices in Lithuania? Transfer pricing issues raised during tax investigations have already reached the Supreme Administrative...
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EUCJ has explained, that the issue by an airline company of tickets is subject to value added tax where the tickets have not been used by passengers and the latter are unable to obtain a...
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• One due date rule has been established for tax payments and declarations – by the 15th day of the respective month, except VAT, which is to be paid by the 25th day of the...
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The following non-taxable Class A payments are eligible for declaration in the annual personal income tax return:• Daily allowances; increased expenditure compensation to employees, whose work is performed in travel, under field conditions, related to...
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I.MAS will consist of 7 subsystems:1. Smart cash register subsystem (i.EKA) – taxpayers will be obliged to provide information to the tax authority on cash desk operations remotely in real time or at the determined...
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EUCJ ruled that afore mentioned assets given free of charge to the public can be linked to transactions subject to VAT. In this case the establishment of recreational object provides the ability to attract more...
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EUCJ ruled, that aforementioned transactions constitute the supply of services for consideration and are exempt from VAT according to article 135 (1) e of Directive 2006/112. The exchange of virtual currency bitcoin into traditional currencies...
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The procedures shall be applied to all empty packaging and packaging filled with goods placed on the market, except for the packaging filled with goods, used for one’s own purposes.General requirements for packaging:1. Packaging shall...
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Therefore, the companies will have to deduct from the salary the following social security contributions:• 9% (standard tax rate applied to employees who did not choose to transfer additional contributions to pension funds) or •...
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The said obligation is enforced in the Law on Financial Accounting of the Republic of Lithuania, indicating thereof that accounting data are based on the inventory data of assets and obligations, i.e. all accounting data...
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Transactions were executed through intermediaries, i.e., intermediaries submitted purchase orders to the company and received invoices for such acquisitions. The Tax Authorities challenged application of zero-rated VAT stating that the fuel was supplied not to...
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The system centralises administration of information on monetary fund restrictions, sends information to banks on restrictions orders and proportionally distributes funds to creditors. Previously a creditor who presented orders on funds restriction to a bank...
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In case contracts for services with members of a small partnership are still signed despite this prohibition, the Tax Authorities shall consider such agreements void and tax them accordingly.Therefore, in case civil contracts for services...
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Changes planned:Opportunity to apply either business accounting standards or international accounting standards unless the legislation requires contrary.Companies that are not part of a business group and trade or plans to trade in regulated markets will...
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Invoices should only be issued in cases where goods are supplied (services provided) and they should not be issued when there is a compensation of expenses (subsidy), on cash collection and other cases.Invoices while providing...
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threshold of EUR 100 on acquisition of goods or services that could be recognised as costs by cash receipts; threshold of EUR 150 (including VAT) on acquisition of fuel that could recognise as costs by...
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EUCJ was requested to explain whether budgetary entities performing economic activities delegated to them by a municipality can be considered as taxable persons for VAT purposes. These entities do not bear an economic risk associated...
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EUCJ decided that Italian criminal laws related to suspension of a limitation period in relation to crimes concerning serious VAT fraud do not fulfil the State’s duty to ensure imposition of effective and dissuasive penalties...
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A company concluded a consulting service agreement in which a supplier committed to provide necessary consulting services, prepare requested documents and refrain from entering into contracts with a company’s competitors. The company agreed to pay...
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According to mentioned judgement, time spent travelling between the workers’ homes and the premises of the first and last customers shall be calculated as working time. Workers are considered to be carrying out their working...
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It must be noted that this applies only in cases when such goods are supplied to taxable person VAT payer under a single agreement which covers installation or construction services.Until 25 August there were no...
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* If such information is not provided by a tax payer until the deadline indicated, such information shall not be taken into account and evaluated by the Tax Authorities in case provided later.
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According to the VAT Law, the supplier of goods must justify application of zero-rated VAT by the documents accompanying the transaction. Every transaction requires a careful assessment by the supplier of conditions of shipment and transfer of...
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Export is an important part of Lithuanian international trade. Our country’s economy is dependent on foreign markets; therefore, the development of export is one of the most significant factors in expanding the gross domestic product...
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09 October 2014 ECJ Case C‑492/13 (Traum EOOD) – The ECJ spoke up that the tax administrator cannot preclude granting a VAT exemption in respect of the tax payer just on the grounds that the...
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Algirdas gathered years of tax consulting experience while being engaged in significant tax optimisation and tax risk management projects, has a great knowledge on taxation issues related to international trading and other transactions. Algirdas provided...
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ACCA is the global body for profesional accountants with with 162.000 members and 428.000 students in 173 countries.Leinonen Lithuania is very proud with one of our team members who works with us more than 6...
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Please read an article: New advisory unit established at Leinonen Mažena Birbalienė, Head of Advisory Unit Leinonen Group is an accountancy and advisory company whose 13 offices can be found in the capital cities of...
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The major accounting and tax amendments that come into force since 1 January 2014. 22 Business Accounting StandardItem 6 of 22 Business Accounting Standard “Changes in Foreign Exchange Rates” whereof it was indicated that business...
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ACCA is the global body for profesional accountants with with 162.000 members and 428.000 students in 173 countries.Leinonen Lithuania is very proud with one of our team members who works with us more than 6...
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Leinonen Lithuania is very proud with one of our team members who attained the highest mark in an individual ACCA Paper exam in Lithuania and was also in the top 1% worldwide. Well done!
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Annual client satisfaction results show that 96% of Leinonen clients are either satisfied or very satisfied with the services they received and with their accountant. This reflects the high standard Leinonen provides and is the...
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M-Filter established their operations in Lithuania in 2011 and has thus now been operating in Lithuania for two years. From the very beginning it has outsourced all financial processes to Leinonen including payroll and accounting. "We...
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From 1 January 2013, the minimum salary in Lithuania has been increased from 850. LTL per month to 1,000. LTL per month, and 5.15 LTL an hour to 6.06 LTL an hour. Also, the maximum...
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