The new law passed by the Lithuanian Parliament aims at the Lithuanian and EU credit institutions operating in Lithuania. The so-called solidarity contribution will be payable on the surplus of the interest received in 2023 and 2024 from the Lithuanian residents’ loans.

The tax base of the solidarity contribution is 50 percent of the net interest income (interest income minus interest expenses) which exceeds the average net interest income of the previous 4 years (i.e. 2018 - 2021 for 2023 and 2019 - 2022 for 2024). The contribution will be levied at a rate of 60 percent.

The contribution will be reported annually until the 15th day of the sixth month following the end of the taxable year. The advance contribution tax was introduced as well, i.e. the solidarity contribution will be reported and paid quarterly.

The law is effective as of 16 May 2023.

You can find the law in the Lithuanian language here.