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Lithuania: Amendments to corporate income tax, VAT, excise taxes, and real estate tax, introduction of insurance premium tax

Effective January 1, 2026

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December 4, 2025

The Parliament enacted comprehensive tax reform, effective as of January 1, 2026. The reform revises the rates and regulatory provisions of corporate income tax, value added tax (VAT), and various excise taxes, modifies the taxable base for real estate tax, and alters the existing framework for individual (personal) income tax.

In addition, the reform provides for the introduction of a new excise duty and security contribution (insurance premium tax) for insurance companies.

Read a December 2025 report prepared by the KPMG member firm in Lithuania

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