Lithuania: Tax proposals include corporate tax increase, tax incentives for asset acquisitions and small enterprises

Comments on the tax proposals may be submitted until May 2, 2025.

The Ministry of Finance on April 16, 2025, announced a package of tax proposals with a proposed effective date of January 1, 2026, including:

Corporate tax rate increase: Increase in corporate income tax rates by 1%, affecting the current 16% standard corporate income tax rate and the 6% reduced corporate income tax rate applicable to:
- Small businesses with a maximum of 10 employees and an annual income of up to €300,000
- Cooperatives entities that receive at least 50% of their total income from agricultural activities during the tax period
- Taxable income derived from the commercialization of assets developed through research and development (R&D) activities
Tax incentives for asset acquisitions: Immediate expensing of fixed assets, such as equipment, computer equipment, and software
Support for small enterprises: Extension from one to two years of the period during which the profits earned by newly registered companies would be subject to a nil corporate income tax rate

Comments on the tax proposals may be submitted until May 2, 2025.

Read an April 2025 report prepared by the KPMG’s EU Tax Centre

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Lithuania: Tax proposals include corporate tax increase, tax incentives for asset acquisitions and small enterprises

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