Lithuania: Proposed tax changes concerning double taxation, DAC8, submission of tax information, and solidarity contribution

The Lithuanian government and various agencies have recently proposed several tax-related changes aimed at improving compliance, preventing tax evasion, and aligning with international standards.

• The government on October 9, 2024, proposed draft legislation to prevent double taxation and curb tax evasion between Lithuania and Taiwan.
• The Ministry of Finance on October 9, 2024, published draft legislation transposing Council Directive (EU) 2023/2226 (DAC8) concerning reporting requirements for cryptoasset service providers. This draft also includes proposed changes to advance pricing agreements (APAs), allowing retroactive application of tax law provisions for bilateral APAs, in line with BEPS Action 14 recommendations.
• The Ministry of Finance has proposed amendments to the Code of Administrative Offences, introducing penalties ranging from €200 to €6,000 for failing to submit required information to the tax administrator, with increased penalties for repeated violations. These changes scheduled to take effect on January 1, 2025.
• The State Tax Inspectorate on October 16, 2024, proposed amendments to the rules for submitting returns on the solidarity contribution, extending requirements to all credit institutions in Lithuania through 2025.