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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.

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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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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