The major accounting and tax amendments that come into force since 1 January 2014.
Investment project tax reduction has
been prolonged to the year 2018 (Art. 461). Since 2014 a list is extended for fixed assets
in respect of which the said tax relief may be applied (investment project tax
relief may be applied to trucks, trailers and semi-trailers, however, it will
be possible to reduce the taxable profits for their acquisition only to LTL 1
million of incurred expenditure within the tax period).
In accordance with CITL Article 461, an entity carrying out an investment project may reduce the taxable profits if the assets are necessary for the entity to carry out the investment project and:
The taxable profits may be reduced by not more than 50%,
Since 1 January 2014 in accordance
with Item 2 of Part 4 of Article 5 any payment received by non-permanent
Lithuanian residents for the activities in the supervisory council and the
board shall be subject to an ITI rate of 15 percent (prior to amendment, just annual
payments were subject to taxation).
Pt 2 of Art. 20 underwent amendments:
= 570 – 0.26 * (income related to employment relationships - 1000)
Since 2014, TEA shall not be applicable to an employee whose monthly income related to employment relationships equals or exceeds LTL 3192 (before 2014 – LTL 3150 Lt.)
In accordance with an amendment to
Pt 8 of Art. 20 of ITIL, additional TEA of LTL 200 per child shall be
applicable to parents and adoptive parents raising children (adopted children)
until 18 years of age, also senior children, if they study at schools according
to general education programmes (the
previously valid procedure – for the first child – LTL 100, for each other –
Since 2014 an income tax rate of
15 percent shall be applied to income from distributable profit (including
dividends) (prior to amendment an income tax rate of 20 percent was applied)
Art. 6 ITIL.
Income tax relief on interest
received by residents on loans granted to entities and other residents (ITIL
Item 19 Pt 1 Art. 17) was lifted. Interest on loans, actually received since 1
January 2014, will be taxed by applying ITI of 15 percent.
Amount of interest on not
asset-backed securities and deposits not exceeding LTL 10,000 is non-taxable
within the tax period by applying an income tax, if not asset-backed securities
have been acquired or contracts for deposits have been concluded since 1
January 2014 (Item 20 Pt. 1 Art. 17). The exceeding amount will be taxed by
applying ITI of 15 percent.
Pt 1 Art. 17 ITIL is changed indicating that income from the sale of securities
(difference between the transfer and acquisition price) exceeding LTL 10,000
within the tax period will be taxed.
The application of the reduced rate of VAT of 9 percent (VATL Pt 3 Art. 19):
The reduced rate of VAT of 5 percent for the period of unlimited duration is applied to medicines and medicinal aid products when acquisition costs of these goods are fully or partly compensated in the procedure prescribed by the Law on Health Insurance of the Republic of Lithuania (VATL Pt 4 Art 19).
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