Lithuania's headline corporate income tax (CIT) rate is 17.
The headline personal income tax (PIT) rate is 32.
The standard VAT/GST (or equivalent consumption tax) rate is 21. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is a Lithuanian tax resident if any one of the following applies: permanent place of residence in Lithuania; center of personal, social, or economic interests in Lithuania; presence 183 days or more (continuous or intermittent) during the tax period; presence 280 days or more across two consecutive tax periods, with at least 90 days in one of them; or Lithuanian citizenship combined with state-funded overseas employment (e.g., diplomats). A company is resident if incorporated in Lithuania. Residents are taxed on worldwide income; non-residents at the same rates but only on Lithuania-source income.
A foreign company is a CFC where a Lithuanian resident directly or indirectly holds more than 50% of its dividend-bearing shares, or holds at least 10% alone while holding more than 50% together with related parties. CFC income is attributed only where the entity is not in an exempt (EEA/DTT-partner, taxed-there) jurisdiction and faces a corporate tax rate below 75% of the Lithuanian rate (i.e., below roughly 12.75% given the 17% headline CIT rate as of 2026). Only the CFC's passive income is attributed pro rata to the Lithuanian controlling party; normal operating income and (subject to conditions) undistributed dividends are excluded.
Lithuania layers two interest restrictions. A thin capitalization rule applies to related-party debt (including third-party debt guaranteed by a related party) held by a lender owning 50%+ (or 10%+ alone with 50%+ combined with related parties) of the borrower's shares: where the controlled debt-to-fixed-equity ratio exceeds 4:1, the entire interest on the excess (not just the marginal portion) becomes non-deductible with no carryforward - unless the Lithuanian borrower proves an unrelated lender would have granted the same loan on the same terms. Separately, since January 1, 2019, an ATAD-based rule caps deductible interest at 30% of taxable EBITDA or EUR 3 million (tested jointly across all Lithuanian group entities); disallowed interest carries forward without time limit, and a group-ratio escape applies where the entity's equity-to-asset ratio is within 2 percentage points of the wider group's.
Lithuania has 58 double tax treaties in force.