The new requirements for Lithuanian transfer pricing (TP) documentation have been accepted on 19 October 2020. These new requirements are prepared according to the OECD BEPS Actions 8-10 and will be effective 1 January 2021.
Major changes in the new TP requirements:
Updated requirements related to documentation of Low value-adding intra-group services and transactions carried-out between Lithuanian taxpayers will be applied for the calculation of corporate income tax for 2020 and subsequent tax periods. Meanwhile, updated requirements for transactions related to Hard-to-value intangibles will be applicable for controlled transactions carried out from 23 October 2020.
In parallel to these changes tax authorities have announced their increased focus on controlled international transaction with special attention to financing and services transactions.
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