Lithuania: Tax relief provisions, second wave (COVID-19)

Lithuania: Tax relief provisions, second wave

The government on 7 November 2020 ordered a “lockdown” as a response to the “second wave” of coronavirus (COVID-19) cases.


There are also tax-related relief measures in response to the coronavirus (COVID-19) pandemic concerning tax payments and installment agreements.

Tax payment

  • Taxpayers included in the “list of taxpayers” directly affected by COVID-19-related measures will incur no late-payment interest for tax liabilities incurred for the period from 16 March 2020 through 31 December 2020. To qualify for this interest relief, the taxes must be paid or tax instalment (loan) agreements must be concluded by 28 February 2021.
  • Other taxpayers not included in the list, although affected by the COVID-19 pandemic, may apply to the tax authorities to become eligible for the relief by 31 December 2020. The subject taxes must also be paid or a tax instalment (loan) agreement must be concluded by 28 February 2021.
  • This relief applies also to self-employed individuals, whose activities were restricted or prohibited by the lockdown.

Tax instalment (loan) agreement

  • Taxpayers directly affected by COVID-19 may conclude an interest-free agreement for a two-year period, through 31 December 2022.
  • Tax instalment (loan) agreements may be concluded for a longer period of five years. However, if the loan period goes beyond 31 December 2022, general rules will apply and interest will be assessed.
  • For other taxpayers, the general rules for concluding loan agreements apply.

Read a 2020 report (updated 11 November 2020) prepared by the KPMG member firm in Lithuania

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