Lithuanian Tax Authorities (further – TA) on 31 October 2022 approved Description no. VA-83
of the procedure for determining the criteria and administration of taxpayers with financial difficulties, affected by the energy crisis, who are subject to tax aid measures.

According to the above-mentioned order the TA announced that taxpayers, companies and residents carrying out individual activities, with financial difficulties due to the energy crisis, who meet the established criteria, can apply for the application of tax aid measures.

Below you will find the main criteria for the application of tax aid measures to a legal entity:

Energy consumption in 2021 accounted for 10 percent or more of all operating costs incurred during this period and in 2022 this part has not decreased;
Does not perform the following main economic activities: electricity, gas, steam supply and air conditioning; water supply, wastewater treatment, waste management and regeneration; financial and insurance activities; real estate transactions; public administration and defense; compulsory social insurance;
Had at least one employee on 7 October 2022, the first business day of the month of application submission and the day of application evaluation;
A legal entity is not going bankrupt, bankrupt, going to be liquidated, liquidated due to bankruptcy or does not have liquidation initiated;
Has submitted a set of required 2021 annual financial statements to the Register of Legal Entities;
Has submitted all mandatory tax reports;
From 7 October 2022 did not pay dividends.
Please note that you can find more information regarding the criteria that companies and residents carrying out individual activities must meet in order to apply for tax aid measures at this link on the TA website.

We would like to inform you that enforced recovery actions will not be initiated, late payment interest will not be calculated and if a tax loan agreement is concluded the interest will not be calculated by the TA for the taxpayers with financial difficulties and affected by the energy crisis, whose applications are approved, for the tax arrears that occurred between 7 October 2022 and 30 April 2023.

Please note that the tax arrears that occurred between 7 October 2022 and 30 April 2023 will have to be paid by the taxpayers until 30 April 2023 (if the taxpayer has not submitted a request to conclude a tax loan agreement with the TA), or (if the tax loan agreement has been concluded) to pay the tax loan within the established terms, but no later than by 31 December 2024.

Please be kindly noted that requests for the application of tax aid measures must be submitted until 28 February 2023.

Please contact Leinonen’s Tax and Legal unit for assistance with the application for the tax loan.

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