Lithuania: Corporate income tax incentives for investment projects

New investment incentives for large projects, qualifying investment projects

New investment incentives for large projects, qualifying investment projects

Under amendments to the corporate income tax law regarding new investment incentives for large projects, qualifying investment projects will be exempt from tax if certain conditions are met.

The incentives will be available for the period 1 January 2021 through 31 December 2025.

Summary

The new corporate income tax incentives are available for entities engaged in large investment projects in the fields of manufacturing, data processing or web servers (hosting) and other related activities. The incentives provide a corporate income tax exemption for up to 20 years for domestic and foreign entities that make qualifying investments in any area of Lithuania, if the following conditions are met:

  • The large investment project is implemented under a valid large investment project agreement.
  • The investment is at least €20 million (€30 million when investing in Vilnius or its region).
  • The average number of workers needed for the implementation of the investment project during a tax period is at least 150 individuals (at least 200 workers when investing in Vilnius or its region).
  • At least 75% of the company’s income is derived from manufacturing, data processing or web servers (hosting) and other related services.
  • The entity has an auditor’s opinion confirming that the required amount of private capital was invested.

Certain other conditions could apply.

Read a March 2022 report 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.