Lithuania: Temporary windfall tax for credit institutions

Payable on the surplus of interest received in 2023 and 2024 from Lithuanian residents’ loans

Credit institutions

Legislation passed by the Lithuanian Parliament—the so-called “solidarity contribution” (windfall tax)—is aimed at Lithuanian and European Union (EU) credit institutions operating in Lithuania and would be payable on the surplus of interest received in 2023 and 2024 from Lithuanian residents’ loans.

The tax base of the solidarity contribution would be 50% of the net interest income (interest income minus interest expenses) that exceeds the average net interest income of the previous four years (i.e., 2018 - 2021 for 2023 and 2019 - 2022 for 2024).

The contribution would be levied at a rate of 60%. The contribution would be reported annually until the 15th day of the sixth month following the end of the tax year. The advance contribution tax was introduced as well (i.e., the solidarity contribution will be reported and paid quarterly).

The law is yet to be signed by the president of Lithuania.

Read a May 2023 report prepared by the KPMG member firm in Lithuania



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