BUSINESS GUIDE LITHUANIA 2015 - PWC
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Business Guide
Lithuania 2015
General, tax and
legal information for
foreign investors
Table of Contents
General information 2
Facts and figures. Politics
Economic environment 6
Key economic indicators. Attractive sectors.
Regional and urban economic overview and trends
Setting up a business 10
Ease of doing business. Types of entities.
Accounting and audit requirements
Investment incentives 12
Investment financing. Legal framework. Double tax treaties.
Investment in real estate and land. Investment protection and guarantees
Labour 16
Conclusion of an employment agreement.
Working conditions. State social security issues
Immigration & permits 18
EU citizens. Non-EU citizens
Tax system 20
Corporate income tax. Withholding tax. Value added tax.
Personal income tax. Social security. Other taxes
Useful links 31
Exhibition and Conference Management. Transport and Communications.
State Institutions. Largest Cities
PwC 32
Tax services. Legal services. Accounting services. Advisory services.
Assurance services. PwC’s Academy. Contacts
© 2015 PricewaterhouseCoopers UAB. All rights reserved. PwC refers to the PwC network and/or one or more of its
member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
© Šarūnas Mažeika / “Delfi”, photograph on the cover and on page 9.
© Vladimiras Ivanovas / “Verslo žinios”, photograph on page 3.
Country Managing
Partner’s Foreword
I am happy to present an updated Even in such complicated geopoliti-
edition of Business Guide of Lithuania cal environment, we are happy and
2015. The Guide offers a useful proud again to see Lithuania among
insight for corporate and individual the fastest growing European coun-
investors planning to enter the Lithu- tries in GDP terms in 2014. Besides,
anian market. new shared service centers and other
This edition covers the key aspects of foreign investors continue establish-
undertaking a business and investing ing in Lithuania.
in Lithuania: from establishing an I hope you will find this Guide helpful
entity to employment issues. It intro- as a reference and interesting to read.
duces the principal economic trends, If you have any questions or com-
investment climate and regulatory ments, please contact me or any of my
framework of the country. The Guide fellow partners at PwC Lithuania.
also provides answers to many ques-
Kristina Kriščiūnaitė tions that investors may face, and
Managing Partner it is a useful starting point for eve-
for PwC Lithuania ryone interested in doing business
in Lithuania.
PwC has a well-established practice
of advising companies and individuals
on business and tax aspects specific
to the Lithuanian market. We have
both, extensive expert knowledge
and professional experience in a full
range of business and legal issues.
Our people are dedicated and ready
to offer services tailored to the needs
of your business.
Business Guide Lithuania 2015 1
General
information
Facts and figures Extending to 65,300 sq. km, Lithua
nia is a larger country than Belgium,
Geography Denmark, the Netherlands or Swit-
The Republic of Lithuania is situated in zerland. Lithuania has around 99 km
Northern Europe on the south-eastern of sandy coastline devoted to a com-
shore of the Baltic Sea. It is the largest bination of leisure and conservation.
of the three Baltic States, the other two Lithuania has an ice-free port in
being Latvia and Estonia. Lithuania Klaipėda, which is the most impor-
shares its borders with Latvia in the tant and biggest Lithuanian transport
north (558 km), Belarus in the south- hub, connecting sea, land and railway
east (653 km), Poland and the Kalinin- routes from East to West.
grad Region of the Russian Federation The climate is midway between mari-
in the south-west (104 km and 249 km, time and continental. In January the
respectively). To the west of the Baltic average daytime temperature is -3°C
Sea lie Sweden and Denmark. (27°F), rising in July to +20°C (68°F).
Country facts Estonia
Capital Vilnius Latvia
Area 65,300 km²
Lithuania
Population 2.9 million
Language Lithuanian
Dominant languages English, Russian, German, Polish
Currency Euro (EUR)
Source: Statistics Lithuania
2 Business Guide Lithuania 2015
Starting from
1 January 2015
Lithuania adopted
the euro
Population and language
The population of Lithuania is 2.9
million. Some 84.2% of the popula-
tion are ethnic Lithuanians, 6.6% are
Poles, 5.8% are Russians, and 3.4% –
others.
Lithuania is the largest of the three
Baltic States, but globally it is a small
country. Its capital and the largest city
is Vilnius with a population of 541
thousand. The second and the third
largest cities are Kaunas and Klaipėda Lithuania is among Top 40 countries
with a population of 303 thousand in the world for the quality of life
and 157 thousand, respectively.
The official and most commonly
spoken language is Lithuanian. It is
Vilnius is among 5 least expensive
one of only two living languages EU capital cities to live in
(the other one being Latvian) of the
Baltic branch of the Indo-European
language family. About 92% of the
population speak one foreign lan-
guage (English, Russian, German or
Polish) and more than 50% speak two
foreign languages.
Time, weights and measures
Lithuania uses Eastern European Time,
which is two hours ahead of Green-
90%
of population
wich Mean Time (GMT+2 hours).
Every year, between March and have secondary
September, Lithuania introduces Day- or higher
46%
light Saving Time (GMT+3 hours).
Lithuania uses the metric system of
education
weights and measures and the Celsius
temperature scale. of population
aged 25-34 have
Codes
The international extension code for
a university
Lithuania is 00 370. degree
The country code used in the Internet
domain names is .lt.
Business Guide Lithuania 2015 3
Politics
• According to the Constitution
of the Republic of Lithuania
(adopted in 1992), Lithuania is an
independent democratic parlia-
mentary republic.
• The supreme legislative power is
held by the Seimas (Parliament),
consisting of 141 members elected
for a term of four years on the basis
of universal, equal and direct suf-
frage and by secret ballot.
• The President of Lithuania is • In May 2013, President Dalia
elected for a five-year term on Grybauskaitė was awarded the
the basis of universal, equal and prestigious International Charle-
direct suffrage and by secret ballot. magne Prize, also known as “Oscar
The President represents the state in Politics”, for Lithuania’s con-
of Lithuania and performs the func- tribution to uniting the European
tions prescribed to him/her by the Union and building the economic
Constitution and other laws. Cur- stability of the whole Europe.
rently, the President of Lithuania is • The supreme executive power
Ms Dalia Grybauskaitė, who is the rests with the Prime Minister who
first female president in the Lithua is appointed by the President and
nian history. She was re-elected for the Government. Currently, the
the second term in 2014. position of Prime Minister is held
by Mr Algirdas Butkevičius, the
leader of the Social Democratic
Party of Lithuania.
• Lithuania joined NATO on 29 March
For the first time in the country’s 2004. On 1 May 2004, Lithuania
history, Lithuanians will be able became a full member of the Euro-
pean Union, and joined the Schen-
to elect mayors by direct vote in gen Area on 21 December 2007.
all municipalities in spring 2015 • Lithuania was the first of the
three Baltic States to hold the
Presidency of the Council of the
European Union (1 July 2013 –
31 December 2013) since joining
the European Union.
• In 2013, Lithuania was elected to
the United Nations Security Coun-
cil. Lithuania was the first country
from the Baltic States to be elected
to such post.
Lithuania’s court system
Supreme
Supreme administrative Constitutional
court court court
Court of appeals 5 regional
administrative courts
5 regional courts
49 district courts
4 Business Guide Lithuania 2015
Business Guide Lithuania 2015 5
Economic
environment Key economic
indicators
Economic indicators show that during
the past five years Lithuania’s econ-
omy has kept growing. As a result, in
2014 Lithuania succeeded in meeting
the EU criteria for the adoption of
the euro, and its national currency
(the litas) was replaced by the euro
3.1%
on 1 January 2015.
Booming shared service centers
2.9% GDP growth
in 2015*
In 2014, Vilnius was elected as the
best destination for establishing
GDP growth shared service centres and outsourc-
in 2014* ing across the CEE region**. More and
more shared service centres choose
Lithuania as their destination due to
highly skilled well-educated profes-
sionals that are able to speak sev-
Lithuania’s recovery continues eral foreign languages, a world-class
infrastructure and a good location.
Currently, there are 51 shared service
centres in Lithuania that provide
The main macroeconomic indicators for 2010-2015 worldwide high-quality services:
29% of these centres operate in IT
2010 2011 2012 2013 2014* 2015* sector and 25% of them provide
Nominal GDP (billion euro) 28.0 31.2 33.3 35.0 36.2 38.2 finance and accounting services. Vil-
GDP growth rate, % 1.6 6.1 3.8 3.3 2.9 3.1 nius is the most popular location for
Average annual inflation, % 1.2 4.1 3.2 1.2 0.3 0.9 shared service centres in Lithuania –
Unemployment rate, % 17.8 15.4 13.4 11.8 10.6 9.7 the number of shared service centres
here increased by 82% during the
* Forecast
past 3 years.
** Source: www.ceeoutsourcingawards.com
Foreign direct Sweden, 3,033 26%
investments Netherlands, 1,236 10%
(accumulated as at the end of
Q3 2014, million euro)
Germany, 1,105 9%
Norway, 780 7%
Estonia, 696 6%
Finland, 652 6%
Poland, 637 5%
Denmark, 519 4%
Cyprus, 443 4%
Russia, 387 3%
Other countries, 2,348 20%
6 Business Guide Lithuania 2015
Lithuania’s biotechnology sector has 86% of the Lithuanian laser produc-
been recognised as one of the most tion. Such companies and organisa-
developed in the Central and Eastern tions as NATO, Pentagon, Nuclear
Europe. Biotechnology research takes Research Centre in Israel, Rezerford
place in Lithuania, and the developed Laboratories in England, Berkley Uni-
techniques and products are applied versity, Livermore National Labora-
in the fields of medicine, pharmacy, tory are the clients of the Lithuanian
Attractive sectors chemistry, agriculture, environment, companies producing lasers.
Information and communication etc. Lithuania’s biotechnology prod- Renewable energy development is
technology sector of Lithuania is ucts are recognised worldwide as 70% becoming increasingly important for
the largest in the Baltic States. Over of them are exported to over 70 coun- Lithuania’s export, too. Emerging
25,000 employees in Lithuania tries. Different R&D incentives are potential of clean technology industry
are working in this sector. Modern offered to support the development of is supported by the fast development
technologies (such as EDGE tech- biotechnology sector in Lithuania. of five R&D and business valleys, the
nology, 3G mobile communications Another high-tech sector in Lithuania pool of 18,000 local scientists and
infrastructure with data speeds of is laser technologies. Every tenth researchers, world-class achievements
3.6 Mbps and mobile WiMAX 4G laser sold worldwide has been made in electronics, and increasing inter-
Internet), the fastest Internet upload in Lithuania. World-class quality of est of businesses with respect to the
in Europe (3rd for download speed in laser production has been recognised development of this industry.
Europe) and the greatest GSM pen- by nearly 100 countries importing
etration in the EU – all these factors
make Lithuania especially attractive
for offshore services.
Lithuania’s engineering industry
has been constantly growing and
expanding by approximately 18%
every year since 2010. This industry
is highly competitive in terms of cost
The fastest Internet speed in Europe
and quality and it is well-integrated and the fastest public WiFi in the world
into the global supply chains. Prod-
ucts developed by the Lithuanian Engineering industry works for NASA,
engineers are often adapted by such Boeing, U.S. Army, BMW, Volkswagen,
international companies and organi-
sations as NASA, Boeing, U.S. Army,
Hitachi, Siemens, Mitsubishi
BMW, Volkswagen, Hitachi, Siemens
and Mitsubishi*. Biotechnology sector is among the mostly
developed in the CEE region
Laser producers have NATO and
Pentagon as their clients
Investments
expanded in 2014
Lindorff
Thermofisher
Danske Bank
CITCO
Newcomers
in 2014 Did you know that
Ahlstrom every 10th laser sold
Game Insight in the world was
PKC group made in Lithuania?
Valuetech
Revel Systems
* Source: www.lietuva.lt
Business Guide Lithuania 2015 7
Latvia
Regional and
urban economic
Klaipėda
Šiauliai overview and
Baltic Sea Panevėžys
trends
Vilnius
Tauragė
Vilnius is the capital and the larg-
Kaunas est city in Lithuania and it has been
recognised as the economic, financial
Vilnius and commercial centre of Lithuania.
Russia Marijampolė
According to the Lithuanian Depart-
Alytus
ment of Statistics, Vilnius County
Druskininkai itself accounted for around 39.2% of
Belarus Lithuania’s GDP in 2013. The GDP per
Poland capita in this County was calculated
at LTL 58,600 (EUR 16,972) in 2013.
Vilnius is ranked first in Lithuania in
terms of foreign direct investment.
Over 60% of foreign investments to
Lithuania are concentrated in Vilnius.
Vilnius offers business-friendly
environment, highly qualified human
resources and a convenient geograph-
ical location as it stands in the centre
of Europe. Most of shared service
centres established in Lithuania are
operating in Vilnius.
Western Union, Barclays, Swedbank, SEB, Computer
Science Corporation (CSC), Danske Bank have
established their shared service centres in Vilnius.
8 Business Guide Lithuania 2015The County generates 19.7% of
total GDP in Lithuania with about
LTL 40,300 (EUR 11,672) nominal
GDP per capita.
Kaunas is mainly focussing on the de-
velopment of technologies and inno-
vation. Science and technology park
Technopolis provides infrastructure
and innovation support services for
small and medium enterprises. It also
helps to attract the talented scien-
tists to the business organisations in
Kaunas and foster entrepreneurship
in general. There are 2 integrated
science, study and business centres
Kaunas (valleys) in Kaunas – Santaka and
The favourable geographical loca- Nemunas. Santaka – the first medi-
Kaunas has become an
tion, convenient road, rail, water and cal and pharmaceutical valley in the
increasingly popular air infrastructure, strong R&D base, Baltic States – has been established
investment destination highly skilled labour force, flourish- for public and private research to
ing knowledge-based businesses and set up knowledge-intensive busi-
for the companies
modern industry make Kaunas region nesses and provide value-added,
searching for IT solutions: one of the most attractive places for knowledge-intensive services, while
Callcredit, Intermedix investment in Lithuania and the Baltic Nemunas promotes the development
States as a whole. It is a city of young of Lithuanian agriculture, forestry
and Virtustream have
people, having the second largest and food sectors.
chosen Kaunas for number of students in Lithuania
their expansion. (approx. 34,000), studying at one
of the seven universities here.
Klaipėda
The port of Klaipėda is the northern-
most ice-free port on the east coast of
the Baltic Sea. In 2013, the dredging
works were finished, which improved
the safety of large ships in the port.
The reconstruction also improved
its competitiveness and increased its
capacity compared to the neighbour-
ing ports.
A convenient geographical location,
sustainable economic growth, excel-
lent infrastructure, highly skilled hu-
man resources, competitive business
development costs and incentives
for investors make Klaipėda espe- FSRU Independence makes Lithuania
cially attractive for foreign investors.
the 1st Baltic State that can ensure gas
The dominant sectors in Klaipėda are
shipbuilding and ship repairs as well supply from an alternative source.
as transportation and logistics*.
The project of the liquefied natural
gas (LNG) terminal was implemented
in Klaipėda in 2014. The commer- (FSRU) technology. The newly-built trains. Palanga International Airport
cial operations of the terminal are FSRU vessel “Independence” was is located only 35 km from Klaipėda,
expected to start in January 2015. docked in Klaipėda on 27 October it offers connecting flights to a variety
The LNG terminal, located at the port 2014. The terminal will be able to of European cities.
of Klaipeda, is based on the Float- meet 90% of gas supply needs of the Klaipėda County itself accounted
ing Storage and Regasification Unit three Baltic States**. for around 12% of Lithuania’s total
Klaipėda offers cargo delivery possi- GDP in 2013. In 2013 the GDP per
bilities for business in a much shorter capita in the County was calculated
* Source: www.investinklaipeda.com time and at a lower tariff by container at LTL 43,800 (EUR 12,685).
** Source: www.investlithuania.com
Business Guide Lithuania 2015 9Ease of doing
Setting business
According to the World Bank’s Doing
up a business
Business 2015 report, Lithuania ranks
24th among the world’s most busi-
ness-friendly countries. Lithuania’s
strengths are demonstrated in the
fields of registering property, starting
a business, enforcing contracts and
trading across borders.
Setting up a business is quick and easy
Open a bank Submit establish- Register company Open a settlement
account with ment documents with the Register bank account for
minimum capital to a notary of Legal Entities ordinary transactions
1 day 1 day 3 days 1 day
Types of entities Private limited liability company (UAB) Public limited liability company (AB)
- Separate legal entity (legal entity with lim- - Separate legal entity (legal entity with lim-
ited liability) ited liability)
- A shareholder may be held liable for the ob- - A shareholder may be held liable for the ob-
ligations of a company only in the event of ligations of a company only in the event of
failure to fulfil the obligations due to unfair failure to fulfil the obligations due to unfair
actions of the shareholder actions of the shareholder
- May engage in any legitimate activities - May engage in any legitimate activities
- May engage in licensed activities upon - May engage in licensed activities upon
obtaining the respective licence obtaining the respective licence
Minimum amount of share capital is Minimum amount of share capital is.
EUR 2,500 EUR 40,000
Registration in 1–2 weeks Registration in 1–2 weeks
General meeting of shareholders (sole share- General meeting of shareholders (sole share-
holder) and general manager (single-member holder) and general manager (single-member
management body) are mandatory bodies management body) are mandatory bodies
Management board (min. 3 members) and Management board (min. 3 members) and
(or) supervisory council (3-15 members) are (or) supervisory council (3-15 members) are
optional bodies. optional bodies. As from 1 July 2015, it will
be mandatory for a public limited liability
company (AB) to have either management
board or supervisory council.
No residence requirements to the general No residence requirements to the general
manager, other members of other bodies manager, other members of other bodies
Employment contract must be concluded be- Employment contract must be concluded be-
tween the general manager and the company tween the general manager and the company
Audit required, if the certain criteria are met* Audit required
* Audit required, if at least two of the following
criteria are met: Comprehensive tax regulation Comprehensive tax regulation
- net revenue from sales exceeds EUR 3.5 million
for the financial year; - Transfer pricing regulation is applicable - Transfer pricing regulation is applicable
- value of assets in the balance sheet exceeds - Transfer pricing documentation is manda- - Transfer pricing documentation is manda-
EUR 1.8 million;
tory when turnover is over EUR 2.9 million tory when turnover is over EUR 2.9 million
- average number of employees exceeds 50 for
the financial year. Thin capitalisation rules apply (4:1) Thin capitalisation rules apply (4:1)
10 Business Guide Lithuania 2015Accounting and
audit requirements
Limited liability companies may
choose at their own discretion
to follow either the Lithuanian
Business Accounting Standards or
Ranking according to the World Bank‘s: Doing Business 2015 report
International Financial Reporting
Ease of Doing Business Standards (IFRS).
Trading Across Borders
Companies whose securities are
Construction Permits
Resolving insolvency
Registering Property
Enforcing Contracts
Starting a Business
Protecting Minority
traded in the regulated markets must
keep their accounting records and
Getting Credit
Paying Taxes
Dealing with prepare their financial statements in
Investors
accordance with IFRS.
If the financial year of a company
Rank
coincides with a calendar year,
Belarus 57 40 51 3 104 94 60 145 7 68 the financial statements must be
Czech Republic 44 110 139 31 23 83 119 58 37 20 approved by the general meeting
Estonia 17 26 20 13 23 56 28 6 32 37 of shareholders by 1 May of the
Hungary 54 57 103 52 17 110 88 72 20 64 following calendar year.
Latvia 23 36 47 32 23 49 24 28 16 40 The financial statements together
Lithuania 24 11 15 9 23 78 44 21 14 67
with an independent auditor’s report
(in case of statutory audit) must be
Poland 32 85 137 39 17 35 87 41 52 32
submitted to the Register of Legal
Romania 48 38 140 63 7 40 52 65 51 46
Entities, and they must be made
Russian Federation 62 34 156 12 61 100 49 155 14 65
publicly available in accordance
Slovak Republic 37 77 110 11 36 100 100 71 55 31
with the legal acts.
Source: The World Bank: Doing Business, 2015
Branch office Representative office Operating as a foreign company
- Structural unit of a foreign company (not - Structural unit of a foreign company (not No registered presence (operations through
a separate legal entity) a separate legal entity) a foreign company, without any registrations
- A founder is liable for the obligations of - A founder is liable for the obligations of in Lithuania)
a branch/ representative office a branch/ representative office
- May engage in all or any part of the busi- - May engage in limited-scope operations: - May engage in any legitimate activities
ness activities of a founder act on behalf of the founder, etc. - For licensed activities, registration of
- May engage in licensed activities with - May engage in licensed activities with a company or a branch may be necessary
certain restrictions certain restrictions
No share capital requirements No share capital requirements No share capital requirements
Registration in 1–2 weeks Registration in 1–2 weeks No registration required
General manager is a mandatory manage- General manager is a mandatory manage- Bodies and their composition are regulated
ment body ment body by the country of incorporation
No additional corporate body may be formed No additional corporate body may be formed Bodies and their composition are regulated
by the country of incorporation
If the founder of a branch is a non-EEA com- If the founder of a branch is a non-EEA com- No residence requirements apply
pany, at least one person acting on behalf pany, at least one person acting on behalf
of the branch / representative office should of the branch / representative office should
reside in Lithuania. reside in Lithuania.
Employment contract must be concluded Employment contract must be concluded
between the general manager and the between the general manager and the repre- No employment contracts are required
branch or the founder sentative office or the founder
Audit may be performed as a part of the Audit may be performed as a part of the
founder’s audit founder’s audit No audit is required
Less comprehensive tax regulation Less comprehensive tax regulation
- Transfer pricing regulation is applicable - Transfer pricing regulation is applicable Less comprehensive tax regulation
- Transfer pricing documentation is manda- - Transfer pricing documentation is manda- - Transfer pricing regulation is applicable
tory when turnover is over EUR 2.9 million tory when turnover is over EUR 2.9 million - Transfer pricing documentation is manda-
No thin capitalisation rules apply No thin capitalisation rules apply tory when turnover is over EUR 2.9 million
No thin capitalisation rules apply
Business Guide Lithuania 2015 11Investment
incentives
During 2014-2020, the
level of funding obtained
by Lithuania from the
EU Structural Funds will
Investment Legal framework exceed that of the other
financing The legal system of Lithuania rec- Baltic States.
ognises the generally accepted
Lithuania enjoys the benefits of being
principles of the legal regulation of
a member of the European Union.
investments. The principle of equal
Both local and foreign businesses, hav-
treatment means that both Lithuanian
ing decided to expand their activity
and foreign investors have equal
into the Lithuanian market, can apply
business conditions defined in the
for the support from the EU Structural
Lithuanian Law on Investment and Double tax
Funds. During the period from 2014 to
2020, Lithuania is expected to receive
other relevant legislation. The princi- treaties
ple of equal protection means that the
more than EUR 12.7 billion in struc- As at 1 January 2015, Lithuania
laws of Lithuania protect the rights
tural assistance. EUR 7.2 billion of the had 53 double tax treaties that
and lawful interests of both local and
total amount is assigned to the EU Co- provide for certain tax benefits for
foreign investors.
hesion policy, which includes invest- foreign investment in Lithuania.
ment in human capital, infrastructure
and public administration. The EU
funds are used to upgrade companies
and the manufacturing sector, pro-
mote exports, create industrial parks, List of the double tax treaties
establish new product development
Armenia France Korea Singapore
and testing laboratories, renovate Austria Georgia Latvia Slovakia
kindergartens and schools, recon- Azerbaijan Germany Luxembourg Slovenia
struct churches and manors, and build Belarus Great Britain and Macedonia Spain
hotels, bicycle paths and ski runs. Belgium Northern Ireland Malta Sweden
Bulgaria Greece Mexico Switzerland
Both local and foreign micro, small Canada Hungary Moldova Turkey
and medium enterprises as well China Iceland Netherlands Turkmenistan
as larger companies established in Croatia India Norway UAE
Lithuania may apply for the non- Cyprus Ireland Poland Ukraine
Czech Republic Israel Portugal USA
refundable EU support. Denmark Italy Romania Uzbekistan
Estonia Kazakhstan Russia
Finland Kyrgyzstan Serbia
Both foreign and local investors have
equal rights in terms of protection
of their investments.
12 Business Guide Lithuania 2015Methods of investing in Lithuania
- Establishing a company, acquiring shares/stake in the company.
- Acquiring property in Lithuania.
- Acquiring control over the company by granting the loan, etc.
- Concluding contracts of concession, leasing and partnership with
public/private companies.
Free economic zones Kėdainiai FEZ also plays an impor- logistic opportunities of railway and
A free economic zone (FEZ) is a ter- tant and strong role in attracting motor transport across the Baltic Sea
ritory designated for the purpose of foreign investment in Lithuania. Region, Europe and Asia. Baltic FEZ
economic-commercial and financial According to the amount of foreign has been established by a team of pro-
activities where companies enjoy pref- direct investment per capita in 2012, fessionals, who are willing to respon-
erential economic and legal condi- Kėdainiai district had the highest rate sibly assist investors in the process of
tions for their operation. Each FEZ is among other districts within Kaunas setting up and developing a successful
established by a separate law. County (4,444 EUR/capita). This rate business.
In 1996 two FEZs were established was 70% higher than Kaunas County Panevėžys FEZ offers access to a wide
in Lithuania: one in Kaunas and the rate. Major investors in economic pool of employees from a city where
other one in Klaipėda. They were activities of Kėdainiai district are from the industries of metalwork, electron-
established for a period of 49 years. Russia, Denmark and Finland. ics, textile, food and beverages have
As of 1 January 2012, five more Baltic FEZ in Marijampolė is lo- been developed for a long time. There
FEZs were established in Akmenė, cated at a crossroad of wide (Russian are schools in Panevėžys preparing
Kėdainiai, Marijampolė, Panevėžys standard gauge) and narrow railway qualified workers in the areas of elec-
and Šiauliai. At the moment, how- tracks conveniently accessible by tronics, mechatronics, electrical and
ever, Akmenė and Panevėžys FEZs are road. It, therefore, provides seamless other kinds of engineering.
not operating yet as the procedures
have not been finalised yet.
With superb road, rail and sea access,
Klaipėda FEZ forms part of the hub
of a multi-modal transport network. Free economic No tax
It was identified in the European on dividends for foreign
Union Transport Infrastructure Needs
zones investors
Assessment (TINA) programme as
a site for the establishment of a logis-
tics centre, forming a part of the Euro-
No tax
pean-wide network of these centres.
Kaunas FEZ offers both a strategic
on real estate
No corporate
geographic location and excellent income tax
during the first 6 years and
development conditions. Situated only 50% (i.e. 7.5%) of
next to Kaunas International Airport corporate income tax over
and in the proximity of the ice-free the next 10 years
Klaipėda Seaport, Kaunas FEZ is
conveniently accessible via road and
railway systems.
Business Guide Lithuania 2015 135 integrated R&D and business centres (valleys)
5 free economic zones (active)
19 industrial parks
Latvia
Akmenė
Telšiai
Kuršėnai
Šiauliai
Radviliškis
Klaipėda Panevėžys
Baltic Sea
Ramygala
Tauragė
Pagėgiai
Kėdainiai Ukmergė
Investment in real
Kaunas estate and land
Vilnius Land (except for agricultural and
Russia
Marijampolė
forestry) may be acquired only by
companies or individuals who are
established or residing in the EU, in
Poland
Belarus countries that have signed the Europe-
an Treaty with the EC member states
or in countries that are the members
of OECD, NATO or EEA. Such indi-
viduals and companies are allowed to
Industrial parks Science and business valleys buy up to 500 hectares of farmland
Lithuania attracts investors not 5 integrated science, research and (or more if the buyer is a stockbreed-
only to its FEZs but to its industrial business valleys are being developed er), provided that the buyer has at
parks (IPs), as well. Industrial sites in the territories of Vilnius, Kaunas least 3 years of farming experience
in Lithuania have already been fully and Klaipėda. Each of these val- or has completed studies leading to
prepared for business use and they leys specialises in a different area of agriculture-related profession.
have the entire necessary physi- scientific research: laser and light Registration of property in Lithuania
cal infrastructure which has been technologies, civil engineering, is smooth and simple. Generally, no
brought to the investor’s land plot biotechnology, molecular medicine, stamp duties are charged on sale/
free of charge. Currently, eight nanotechnologies, sustainable chem- purchase transactions. Real estate-
state-owned IPs (in Akmenė, Alytus, istry and bio pharmacy, information related transactions, however, require
Kėdainiai, Marijampolė, Pagėgiai, and communication technologies, notary’s approval. A notary fee
Panevėžys, Radviliškis and Šiauliai) electronics and organic electronics, payable by a legal entity on sale/pur-
and eleven private IPs (in Vilnius, and others. chase of real estate amounts to 0.45%
Ukmergė, Tauragė, Šiauliai, Klaipėda, In February 2013, Vilnius University of the real estate price, but it may not
Panevėžys, Telšiai, Kaunas and National Scholarly Communication be less than EUR 29 and not more
Kėdainiai municipalities) are being and Information Centre was opened than EUR 5,800. Besides, changes in
developed. at Sunrise Valley. It is a part of a Sun- real estate ownership rights must be
An investor’s needs are of primary im- rise Valley project which attempts to registered with the Real Estate Regis-
portance, so land in these industrial promote growth of knowledge-inten- ter. The amount of the fee charged for
parks may be subdivided into smaller sive economic activities in Vilnius. the registration of a title to immov-
parts and further leased for long-term Furthermore, a joint health science able property depends on the type
periods at favourable prices. The IPs centre is expected to open in 2015. and value of that property.
established in smaller towns are
rapidly developing, as they can offer
cheaper but effective, well-qualified
and highly motivated labour force
in addition to more favourable real
estate rent prices.
In industrial parks infrastructure
is brought to the investor’s land
plot free of charge.
14 Business Guide Lithuania 2015Lithuania ranks 9th
in the world for ease of
property registration
Investment
protection and
guarantees
Lithuanian legislation protects
investors’ rights and lawful interests.
The laws provide for the rights of an
investor to manage, use and dispose
of the investment.
Foreign investors have the right to le-
gal assistance in the event of violation
of their rights and lawful interests.
Investment disputes between foreign Investment in a Lithuanian Business reorganisation
investors and Lithuania are resolved subsidiary Companies in Lithuania may be
by way of mutual agreement of the The following exemptions from merged and divided by means of
parties, by the courts of Lithuania, taxes are available when investing in reorganisation in line with certain
international arbitration institutions a Lithuanian subsidiary: conditions set forth in the Lithuanian
or other institutions. • There is no capital (stamp) duty on Civil Code, Law on Companies, Law
In the event of investment disputes, acquisition of shares. on Corporate Income Tax and other
foreign investors have the right to refer • There is no capital (stamp) duty on legislation. Only the legal entities of
directly to the International Centre for increase in the share capital. the same legal form may be involved
Settlement of Investment Disputes. • Reduction of share capital that was in reorganisation (with some excep-
formed from reserves and retained tions indicated in special laws).
earnings and paid to corporate As from 29 December 2007, the
residents is not subject to tax as cross-border mergers are performed
long as the conditions for the according to the Lithuanian Law on
participation exemption applied to Cross-border Mergers of Limited Li-
dividends are met. ability Companies implementing the
• Reduction of share capital that was Directive 2005/56/EC.
formed from shareholders’ contri- If properly structured, mergers are
butions is not subject to tax. tax neutral.
The majority of office buildings in
Modern and affordable office space
Lithuania have been built after 2005.
A few large projects are in the pipe- Location Total vacant area Average price EUR/m²/month
of office space, m²
line that will significantly increase
the total modern office space in the Class A Class B
Vilnius market in 2015 – 2017. Vilnius 25,600 12.0 – 15.0 7.8 – 11.0
Kaunas 1,300 9.0 – 11.5 5.2 – 7.2
Klaipėda 9,000 9.0 – 11.5 5.2 – 7.2
Source: www.ober-haus.lt
Business Guide Lithuania 2015 15Labour
With around 3 million inhabitants,
Lithuania is quite a small market in
Conclusion of The parties may agree to apply for-
eign law to their employment agree-
Eastern Europe. However, one of the an employment ment. Despite such agreement, how-
main advantages of the Lithuanian
labour market is its qualified special-
agreement ever, the Lithuanian mandatory rules
would prevail if the actual workplace
ists in social sciences, economics and Structure of an employment of the employee under the employ-
law. A strong IT sector, engineering, agreement ment agreement is in Lithuania.
manufacturing and construction are There is no standard form of an Social partners that include employee
other highly qualified fields. employment agreement, but it must and employer organisations are
According to the available data, contain the main employment provi- seeking to reduce the administra-
Lithuania has highly educated tal- sions, for example, the employee’s tive burden of employers. Recently,
ent pool*. It ranks 1st in the EU for place of work, job duties, etc. The rec- several amendments simplifying the
mathematics, science and technology ommended form of the employment recruitment procedure have come
graduates per capita. agreement has been approved by the into force. It is no longer required
In general, the Lithuanian regulatory resolution of the Lithuanian Govern- to have the register of employment
legislation on employment is employ- ment. It may be updated depend- contracts or issue a work certificate to
ee-oriented and is mainly governed by ing on the needs of the employers employees. Moreover, employers may
the Lithuanian Labour Code. The ba- (e.g. non-competition or non-solicita- opt for sustaining from the provision
sic provisions are defined below. tion obligations of employees may be of pay slips to employees or simply
provided). The Lithuanian version of send them by email.
the employment agreement may be
accompanied by an equivalent version Term of an employment
in any foreign language. agreement
Employment agreement in Lithuania
may be concluded:
• for an indefinite period, or:
- for a fixed period – (up to 5 years)
Lithuania has the highest ICT literacy
if the work is of a temporary na-
in the EU – 97% of students obtain ture. However, it is prohibited to
ICT skills at secondary schools conclude a fixed-term employ-
ment agreement if the work is
of a permanent nature, except
for the cases set forth in relevant
Administrative burden of employers laws or collective employment
is simplified and reduced agreements, or if an employee
was employed to a new job
opening until 31 July 2015;
- temporary – (up to 2 months)
if the work is urgent or tempo-
rary in nature or is intended to
substitute employees who are
temporarily absent;
Minimum wage - seasonal – (up to 8 months
EUR 1.82
during a year) if the work is
seasonal in nature.
A probationary period may be estab-
lished in employment agreements,
per hour (gross) except for the temporary employment
agreements. The maximum proba-
EUR 300
tionary period is 3 months.
per month (gross)
* Source: www.investlithuania.com
16 Business Guide Lithuania 2015Working State social
conditions security issues
Working time The Lithuanian state social insurance
The normal working time for an em- scheme includes insurance for pen-
ployee should not exceed 40 hours per sions, health, illness and maternity,
week and eight working hours per day. unemployment, accidents at work and
A five-day working week is standard, occupational diseases. There is no
but it may be extended to a six days statutory requirement for the employ-
A probationary period
working week in certain cases. Gener- ers to provide additional individual may be established in
ally, overtime is prohibited. An em- insurance to their employees. employment agreements
ployer may apply overtime only in However, additional insurance might
exceptional cases specified by the Lith- be required in connection with
uanian Labour Code or provided there your business activities in Lithuania
is a written consent of the respective (e.g. insurance of professional/com-
employee. The overtime work must not mercial liability of the company).
exceed 4 hours in two consecutive days
and 120 hours per year unless a collec-
tive employment agreement provides
up to 180 hours per year. Lithuanian statutory holidays
Date Holiday
Holidays
The minimum annual paid holiday 1 January New Year's Day
entitlement is 28 calendar days. 16 February Independence Day (Re-establishment of the State of Lithuania)
Additional annual holiday benefits 11 March Re-establishment of Lithuania's Independence
are foreseen for certain groups of Set yearly Easter Sunday and Easter Monday
employees (e.g. disabled persons, 1 May International Labour Day
employees under eighteen years of First Sunday in May Mother‘s Day
age, employees working the night First Sunday in June Father‘s Day
shifts or in abnormal/harmful 24 June Rasos (Midsummer Festival) and Joninės (St John’s Day)
conditions). Annual paid holiday 6 July Statehood Day (Coronation of the King Mindaugas)
leave must be granted in the same 15 August Assumption Day
working year, usually after the 1 November All Saints’ Day
end of the period of six months of
24 December Christmas Eve
employment.
25 and 26 December Christmas
Termination of an employment agreement
Cases of employment termination Grounds for termination Notice period* Severance payment
Expiry of an employment Expiry of the term provided for in N/A N/A
agreement the employment agreement
Mutual consent between the Written agreement on the Offer to terminate an employment N/A
parties termination of the employment agreement must be accepted
agreement within 7 days
Notice of an employee At any time by serving to the - 14 working days N/A
employer a prior written notice - 3 working days in certain
circumstances (e.g. sickness or
disability, retirement)
Fault of an employee - Gross breach of employment N/A N/A
duties, such as disclosure
of commercial information,
unreasonable absence from
work for a whole day, etc.
- Repeated breach of employment
duties within the last 12 months**
For substantial reasons and Reasons related to professional - 2 months 1-6 average monthly salaries
without the fault of the employee qualification of the employee, - 4 months for certain categories depending on the service period
his/her performance, economic of employees, (e.g. for of the employee
and technological aspects, employees raising children
restructuring of the company’s under 14 years of age or
activities, etc. persons of pre-retirement age)
* The termination of the employment agreement during the probationary period is permissible with a 3 days’ notice either on the initiative of the employee or the employer. The Lithuanian
Labour Code prohibits from terminating the employment agreement with employees raising children under 3 years of age on the initiative of an employer and without the fault of an
employee. This restriction does not apply if the employment is terminated on the grounds of expiry of the term.
** Statutory period for finding out the breach and imposing disciplinary measures apply.
Business Guide Lithuania 2015 17Immigration
& permits EU citizens
EU citizens and their family members
are free to stay and work in Lithuania.
Even if the family members of EU citi-
zens are non-EU citizens, they are is-
sued a residence certificate of a family
member of an EU citizen
Non-EU citizens
A non-EU citizen needs a visa to enter
Lithuania, unless a visa-free regime
Lithuania is a Member State of the is applied.
European Union (EU) and a member Diplomatic missions or consular posts
of the Schengen Area, therefore, the of Lithuania issue visas to non‑EU
Lithuanian immigration laws were set citizens who intend to travel to
to regulate the freedom of movement Lithuania. The procedure and neces-
of the nationals of other countries to sary documentation depend on the re-
Lithuania. Thus, any EU citizen is free quirements of a particular diplomatic
to stay in Lithuania nearly without mission or consular post of Lithuania.
any legal obligations. Non-EU citizens If a non-EU citizen stays in Lithuania
(foreign nationals) might be subject for a period longer than 3 months, a
to additional requirements, which are temporary or permanent residence
discussed below. certificate should be obtained.
A non-EU citizen must submit an
application for a residence permit
and other documents to a diplo-
matic mission or a consular post
of Lithuania abroad. A non-EU
No work or residence permits are citizen who is lawfully staying in
required for EU citizens Lithuania, must submit the applica-
tion to the Migration Department in
the territory of which he intends to
reside. Such lodging of application,
however, does not entitle a non-EU
citizen to stay in Lithuania before the
application has been examined and
a decision on the issue of a residence
permit has been adopted.
No actions Temporary Permanent
are required residence residence
upon entry certificate is certificate is
required required
3 months 3 – 12 months 5 years
18 Business Guide Lithuania 2015Employment of highly skilled foreigners
has been simplified
Work permit
If a non-EU citizen intends to work in
The EU Blue Card allows working and living
Lithuania, a work permit is required.
The requirement to have a work in Lithuania or another EU Member State
permit applies to both, short and
long-term stay cases.
The main exemptions from the re-
quirement to obtain a work permit are
as follows:
• When a non-EU citizen stays in
Lithuania for up to 3 months: to
negotiate a contract or the terms
of its implementation; to train per-
The EU Blue Card – employment As from 1 November 2014, certain
sonnel; to undertake commercial
of highly skilled non-EU citizens amendments to immigration law
activities; or to install equipment;
The EU Blue Card is Europe’s answer came into force. The amendments
• When a non-EU citizen is posted
to the US Green Card. It is designed to are intended to simplify the proce-
to Lithuania from other group com-
attract the non-EU citizens who have dure for employing highly skilled
pany for the period no longer than
completed at least the first stage of foreigners in Lithuania. If the salary
3 years to perform highly skilled
tertiary education to the EU. The Blue proposed to such employees is greater
work necessary to ensure further
Card is an EU-wide approved work than 3 national average monthly
activities of the Lithuanian com-
permit allowing highly skilled non- wages (approx. EUR 2,100 in total),
pany, provided he/she has been
EU citizens to work and live in any there is no requirement to obtain the
employed with such other group
country within the EU. The non-EU above-mentioned decision from the
company for at least 1 year.
citizen who has the EU Blue Card can Lithuanian Labour Exchange Office
In order to employ a non-EU citizen,
work and live in Lithuania without a or to register a vacancy and search for
Lithuanian employers are required:
work permit. employees in the Lithuanian and EU
• to apply to the Lithuanian Labour
Although it is relatively new and the labour markets.
Exchange Office and register a
European countries still face eco- The highly skilled foreigners will
vacancy;
nomic challenges, the EU Blue Card be able to start their work from the
• to obtain the work permit from the
has proved to be quite a success. In moment the application is submitted.
Lithuanian Labour Exchange Office
Germany alone, over 16,000 cards The EU Blue Card may be issued for
before a foreign national arrives to
had been issued by 1 August 2014*. the period of up to 3 years.
Lithuania.
When a Lithuanian employer wants Foreigners who stay in Lithuania to
The work permit is issued within 41
to obtain the EU Blue Card for an work for other group company and
calendar days and is valid for up to
employee, the former is required: their salary is greater than 2 national
2 years. It is important to note that
• to apply to the Lithuanian Labour monthly average wages (approx.
the Labour Exchange Office has to be
Exchange Office and register a EUR 1,400), will be able to apply for
informed about the intention to regis-
vacancy; the residence permits for their family
ter a vacancy 3 months before submit-
• to receive a decision that the members as well.
ting the application for registering the
employment of a highly skilled If employee intends to change the em-
vacancy, and the vacancy has to be
foreigner meets the requirements ployer during the first two years, the
registered 1 month before submitting
of the Lithuanian labour market; permission of the Migration Depart-
the application for the work permit.
• to pay the employee a salary of at ment is required.
least double Lithuanian average
monthly wage (approx. EUR 1,400
in total).
If a non-EU citizen intends to work in Lithuania,
a work permit is required
* Source: www.apply.eu
Business Guide Lithuania 2015 19The tax system
Appeal procedures
Any person who disagrees with a
fiscal administrative document or a
refusal to issue such a document has
the right to lodge an appeal. Deci-
sions taken by a local authority may
The Lithuanian State Tax Inspectorate be appealed against within 30 days.
administers the main taxes and duties If the taxpayer is dissatisfied with the
other than customs duties, which are result of the first-stage appeal, he may
administered by the Customs Depart- appeal to the courts.
ment. Institutions authorised by the
Lithuanian Ministry of Environment Anti-avoidance principle
take part in the administration, jointly Lithuania has specific anti-avoidance
with the State Tax Inspectorate, of taxes rules. The Lithuanian Law on Tax
on public natural resources, oil and gas Administration indicates that the
resources, and pollution. The State So- Tax Authorities have a right to apply
cial Insurance Fund Board is responsi- the substance over form principle for
ble for the administration of state social the purpose of calculating the tax.
insurance contributions. All collectively It means that if a taxpayer’s transac-
and each individually are further re- tion is concluded with a view to gain
ferred to as the Tax Authorities. a tax benefit, thus breaching the
scope of tax legislation (e.g. to defer
the deadline for the tax payment,
to reduce or fully avoid the payable
amount of tax, etc.), the Tax Au-
thorities do not take into account the
The system of taxes and duties in Lithuania consists of: formal expression of the taxpayer’s
• state taxes (direct and indirect), activity, they recreate the distorted or
• state duties, hidden circumstances associated with
• local duties and charges, taxation as provided for in tax laws,
• directly applicable taxes and other mandatory and calculate the tax based on the
payments prescribed in the European Union’s provisions of relevant tax laws.
regulatory enactments.
A “one-stop-shop” principle
A “one-stop-shop” principle allows
for a random selection of the special-
ists from any territorial tax office of
the Tax Authorities for the review of
tax returns. This principle ensures
a better workflow, the distribution of
responsibilities and transparency.
Modern electronic
declaration system (EDS) A “one-stop-shop” The Tax Information Centre
principle makes the If tax payers have any questions
ensures 24/7 service about the submission of tax returns
provision to the tax payers administration of or taxation matters, they can call
and makes the payment of taxes reliable and the Tax Information Centre and get
transparent. advice directly from the specialists
taxes easy and fast. of Tax Authorities.
20 Business Guide Lithuania 2015Business Guide Lithuania 2015 21
CIT 15%
The standard CIT rate
is 15%, which is one of
the lowest in the EU.
5%
The reduced CIT rate
of 5% applies to:
• small companies which 0%
meet certain conditions; The reduced CIT rate of
• companies involved in 0% applies to companies
Corporate agricultural activities
and which meet certain
which employ employees
eligible for social support
income tax (CIT) conditions. and which meet certain
conditions.
Tax base
For local Lithuanian companies –
all income sourced inside and out-
side Lithuania. Exemption is applied
to income earned through perma-
nent establishments in EEA coun-
tries or countries which have a DTT
signed with Lithuania.
For foreign companies – income re-
ceived from business activities carried Computation of taxable profit Incentives to holding companies
out through permanent establish- While computing the taxable profit of Capital gains on transfer of shares
ments in Lithuania and other specific a Lithuanian company/foreign com- are exempt from CIT if a Lithuanian
income sourced in Lithuania, such as: pany’s permanent establishment, the company:
• interest, following is deducted from income: • transfers the shares of the company
• dividends, • non-taxable income (e.g. divi- which is registered in EEA country
• royalties, dends, insurance payments, penal- or in another country with which
• proceeds from rent/sale of ties received, etc.), Lithuania has a DTT; and
immovable property, etc. • allowable deductions (expenses • has held over 25% of shares of the
necessary for earning income or aforementioned company for not less
deriving economic benefit), limited than 2 years (not less than 3 years in
allowable deductions (e.g. depreci- the event of reorganisation).
ation of fixed assets, business travel
and representation expenses, etc.). Tax losses carried forward
Lithuanian Law on CIT also provides Operating tax losses can be carried
for the list of non-deductible expenses forward for an unlimited period. Loss-
(e.g. penalties, expenses related to es incurred from disposal of securities
non-taxable income, etc.). can be carried forward for a period of
5 years and can only be offset against
income of the same nature.
Only up to 70% of current year’s tax-
able profits can be offset against tax
losses carried forward.
Operating tax losses can be carried forward Transfer of tax losses between
the group companies
indefinitely. Transfer of tax losses between
Tax losses incurred after 1 January
group companies is available. 2010 can be transferred from one
company to another within the same
group of companies and within the
same tax period, if certain conditions
are met.
Capital gains on transfer of
shares can be exempt.
22 Business Guide Lithuania 2015Special CIT reliefs
Relief Main benefits of the relief
Investment project relief Companies implementing investment projects are entitled to reduce their taxable profit by up to 50% by
deducting the actually incurred acquisition costs of fixed assets meeting certain requirements (the costs
exceeding the 50% limit can be carried forward for 4 years).
Depreciation (amortisation) expenses of such fixed assets are deducted in a common manner.
Taxable profit can be reduced by deducting these costs if they are incurred in 2009-2018 taxable periods.
Research and Development Expenses (except for depreciation (amortisation) charges of fixed assets) incurred for R&D works may be
(R&D) relief deducted three times during the tax period in which they are incurred.
Tax relief for Free Economic Zone FEZ companies with capital investments not less than EUR 1 million and which meet certain other
(FEZ) companies conditions are exempt from CIT for the first 6 years following the date of the capital investments and they
are subject to a 50% reduction in CIT rate for 10 subsequent years.
Transfer pricing rules Thin capitalisation rules Tax compliance
All transactions between associated The Lithuanian thin capitalisation The taxable period for CIT is usually
parties must be performed at arm’s rules apply in respect of borrow- a calendar year. The tax return has to
length. The Tax Authorities have ings from related parties as well as be filed and CIT due has to be paid be-
a right to adjust transaction prices if borrowings guaranteed by related fore 1 June of the next taxable period.
they do not conform to market prices. parties. The debt to equity ratio is 4:1. Having obtained the permission from
The Lithuanian transfer pricing rules The above provisions do not apply if the Tax Authorities, the companies
refer to the Transfer Pricing Guide- a Lithuanian company can prove that may use a taxable period other than
lines for Multinational Enterprises the same loan under the same condi- a calendar year. In this case, the tax
and Tax Administrations prepared by tions would have been granted by return has to be filed and CIT due has
the Organisation for Economic Coop- a non-related party. to be paid before the 1st day of the 6th
eration and Development (OECD) to month of the next taxable period.
the extent that they do not contradict Depreciation of fixed assets The companies are also subject to
with the domestic rules. The depreciation of fixed assets is advance CIT payment in Lithuania.
All companies with annual revenue calculated separately for each asset.
exceeding EUR 2,896 million, as well Generally, buildings are depreciated
as all banks, insurance companies and over 8 to 20 years (new buildings
credit institutions are required to pre- over 8 years), machinery and plant
pare transfer pricing documentation are depreciated over 5 years. Several
in a specifically prescribed form. types of intangibles (software, rights
obtained, etc.) are usually amortised
Binding rulings and advanced over 3 to 4 years. Goodwill is usually
pricing agreements amortised over 15 years if certain con-
There is a possibility to apply for ditions are met.
a binding ruling or advanced pric-
ing agreement (APA) from the Tax
Authorities in respect of the future
transactions. Application process
and other matters related thereto are Companies may benefit
governed by specific rules approved from investment project,
by the Tax Authorities. R&D and FEZ reliefs.
Business Guide Lithuania 2015 23You can also read
