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Lithuania - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives


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For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

There are no special residency considerations for short-term assignments. The same rules as described previously for determining residency are applicable.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No special considerations apply for short-term assignments.

Taxable income

What income will be taxed during short-term assignments?

Subject to tax treaty relief, all of the income relating to work performed in Lithuania will be taxable.

If the assignee is not resident in Lithuania, income relating to non-Lithuanian work will not be taxed.

Also, if an individual is recognized as a Lithuanian tax resident due to the number of days spent in Lithuania, only Lithuanian sourced income is taxed and declared in Lithuania.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in your country?

Short-term business trips may not be taxable in Lithuania, provided the employee does not work for the benefit of the host company (case by case analysis would be required).

© 2019 "KPMG Baltics", UAB, a Lithuanian limited liability company and a member firm of the KPMG network of independent members firms affiliated with KPMG International Cooperative ("KPMG International") a Swiss entity. All rights reserved.

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