Changes in tax aid application terms - Lithuania

We would like to inform that the State Tax Inspectorate (hereinafter - STI) has announced that the term of application of tax aid measures for the taxpayers affected by COVID-19 has been changed by the Order of STI No. VA-27.

Before businesses and natural persons who have been negatively affected by COVID-19 could defer taxes until the end of the emergency situation in Lithuania and conclude interest-free tax loan agreement two months after the end of the emergency situation.

Now businesses and natural persons who have been negatively affected by COVID-19 will be able to defer taxes until 31 December 2020. Within two months of this deadline, businesses and natural persons will be able to apply to the STI and request to conclude in preferential form an interest-free tax loan agreement (until 1 March 2021).

We would like to remind that tax deferral can be used by companies that have been included in the list of entities negatively affected by COVID-19 by the STI. You can view the updated list here https://www.vmi.lt/cms/informacija-verslui-del-covid-19.

Business who have not found themselves on the above-mentioned list, but who have also experienced the negative consequences of COVID-19 and wish to use the aid measures, could submit simplified application form through My STI system or by e-mail vmi@vmi.lt. In case the company has tax arrears, the simplified application form to STI could be submitted.

Based on publicly available information, that 62.1 thousand of companies are currently included in the list of entities negatively affected by COVID-19, of which approximately one in three companies (about 23 thousand taxpayers) use tax aid measures provided by the STI. Despite the fact that COVID-19 negative consequences experienced business postponed about 697.3 million of taxes, the rates of taxes paid by listed business are improving compared to the same period last year, and debt growth has been much slower in recent months.

Please be noted that companies may not wait for the date of 31 December 2020 and apply earlier for an interest-free tax loan agreement for tax arrears that already have occurred.

Should you have any questions, please do not hesitate to contact Leinonen Tax team and we would be happy to provide more information about the mentioned changes or support with communication with STI which may be relevant to Your business.

The information above was prepared by the Leinonen tax team.