In relation to the outbreak of the COVID-19 virus, the Lithuanian Government and the Tax authorities will apply certain tax related measures to assist tax payers with their ongoing obligations.
Corporate Income Tax (CIT):
Personal income tax:
For more official information please visit:
Should you have additional questions or need specific advice, please contact our KPMG professionals.
Lithuanian tax authorities have published the list of tax payers which were directly hit by COVID-19 related measures. These tax payers will automatically be subject to certain reliefs:
Similar measures will also apply to social security obligations.
The list is available here. Search should be made based on the identification number or name, also based on group for which these reliefs apply (in Lithuanian: “Mokesčių mokėtojai, kuriems taikomos mokestinės pagalbos priemonės dėl COVID-19".)
Other businesses which are not on the list, may also apply to the tax authorities for the reliefs, also for conclusion of a tax loan agreement.
More information available here (in Lithuanian).
Support and safety at work – tax treatment
Lithuanian tax authorities published explanations to frequently asked questions regarding COVID-19 related measures.
The following necessary safety at work related expenses can be deductible for tax purposes during the current extreme situation:
• Expenses related to business trips or participation in events that have been canceled due to the quarantine;
• Additional benefits provided to employees, that are necessary to ensure continuous activities of a company during the outbreak of COVID-19. Such benefits should also not be regarded as benefits in kind for the employees, since expenses are incurred for the benefit of the company rather than employees;
• Expenses for disinfection means and services.
Sponsorship to medical institutions
Sponsorship provided to medical institutions, which do not have the formal status of sponsorship recipient during the extreme situation period, can be deductible for corporate income tax purposes.
Sponsorship exceeding EUR 14,500 can be deductible for tax purposes, even if it is impossible to conclude a notarized agreement which is formally required for support exceeding EUR 14,500.
When a VAT registered company provides aid by goods and has deducted input VAT, it does not have an obligation to calculate the use for private needs for such goods provided.
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