Accounting, Payroll, Tax & Legal since 1989

Increase of the business trip coefficient - illegal

The Constitutional Court of the Republic of Lithuania adopted the decision that the Government Resolution „On the amendment of the approval of the rules for the deduction of business expenses from income“ (2019 October 16 no. 1038) contradicts with the Constitute of the Republic of Lithuania. The mentioned Resolution increased the coefficient from 1,3 to 1,65 from which the minimum monthly salary or the minimum hourly salary should be multiplied in calculating the amount of the daily allowance to be treated as non-taxable compensation for business expenses abroad. This Resolution was adopted without complying with the requirements of urgent order of adoption of legislation. There was no proper coordination with other authorities concerned and no proper public access when adopting the Resolution.


The decision of the Constitutional Court will come into force from 3 January 2022. Until this period the Government is obligated to adopt relevant legislation in order to restore the legal situation. It means that the Government has to keep the order and terms of adoption of the new regulation with the new coefficient or the previous coefficient will be restored.


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