Baltic Tax Centre (BtaxC) is an independent Lithuanian tax service provider.
We provide tax consultations tailored to your specific situation. Also, we advise and assist in the calculation, reporting, and payment of taxes.
Our goal is to make things easy and straightforward, addressing issues promptly and informally. We take into account not only the complicated and unclear tax laws but also the practical side of meeting tax requirements. Our aim is to bring value to your business by navigating through the complexities of taxation.
Ramūnas Riazanskis,
Founder & Tax Adviser
Personal Income Tax (PIT)
Personal Income Tax (PIT) is applicable to individual income derived from various sources such as employment, property sales, investments, etc., as well as business income when the business activity is conducted without establishing a legal entity.
The level of taxation is determined by two primary criteria: the type of income and the annual income amount. Therefore, our assessment considers the total annual income, with a focus on the annual income return. In providing guidance on PIT matters, we take into consideration social security (Sodra) contributions and applicable taxes outside Lithuania. Additionally, we place emphasis on leveraging the benefits available under double tax agreements (DTAs).
Our advisory services extend to assisting with the relocation of tax residence upon entering or leaving Lithuania.
Corporate Income Tax (CIT)
Corporate Income Tax necessitates continual consideration of the optimal business structure, one that effectively manages risks, allocates resources, optimizes functions, and does not unduly increase the taxation of earned profits. Baltic Tax Centre is positioned to thoroughly assess and evaluate the tax structure of your companies, offering tailored solutions to enhance tax efficiency.
Unlike other Baltic states, Lithuania imposes taxes on a company's income regardless of whether the profits are distributed. However, the Corporate Income Tax legislation provides numerous tax reliefs for various scenarios, including those related to small businesses, research and development activities, investment projects, large-scale projects, Free Economic Zone companies, dividends, capital gains, and more. Furthermore, the legislation allows for the carryforward of tax losses within the company or their transfer from / to group companies. Our objective is to identify pertinent benefits and assist in their application in accordance with the conditions outlined by the law and the Tax Authorities.
Value Added Tax (VAT)
Value-Added Tax (VAT) is levied on the supply of goods and services within the territory of Lithuania. The Lithuanian VAT legislation closely aligns with the EU legislation outlined in the VAT Directive. The application of VAT holds significant importance for two key aspects of business: meeting VAT obligations arising from sales and the potential for deducting or recovering VAT related to the acquisition of goods or services.
VAT deduction can pose challenges, especially when a company is involved in VAT-exempt or mixed activities, such as those in financial, health, and other industries. Our expertise lies in optimizing VAT deduction in compliance with local VAT regulations.
Baltic Tax Centre is poised to assist you in accurately assessing your VAT obligations in Lithuania. Our services include guiding you through the VAT registration process, filing VAT returns, and facilitating the recovery of VAT.
Real Estate Tax (RET)
Real Estate Tax (RET) is computed independently of the land tax and is levied on various types of buildings and premises situated in Lithuania. Distinct tax regulations apply to business and personal property.
RET has experienced consistent growth in recent years, driven by the expanding tax base and escalating tax rates, which can reach up to 2%. The continual increase in real estate prices has a detrimental effect on the taxable values of real estate.
Our services encompass the calculation of tax and the preparation of Real Estate Tax returns. Additionally, we provide guidance on the tax implications associated with planned real estate sales or acquisitions.
0,5-3%
Representation before Tax Authorities
Baltic Tax Centre addresses diverse tax matters by engaging in communication and collaboration with tax authorities, specifically the State Tax Inspectorate (VMI). We draft inquiries for tax rulings, whether binding or non-binding, when tax laws or their interpretations are ambiguous. In the event of a tax investigation or audit by VMI, we assist in preparing relevant information, data, and explanations.
Baltic Tax Centre serves as your representative in all tax-related affairs in Lithuania, ensuring comprehensive support for both you and your business.
