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
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