General information

23 taxes have been introduced in Lithuania, out of which the main ones are the following:

§  excise duties

§  personal income tax

§  customs duties

§  immovable property tax

§  corporate income tax

§  VAT

§  compulsory health insurance contributions

§  state social insurance contributions

§  land tax


Other taxes:

  • hydrocarbon resources tax
  • deductions from income under the Law of the Republic of Lithuania on Forestry
  • contributions to the Guarantee fund
  • consular fee 
  • lottery and gaming tax
  • tax on environmental pollution
  • fees for registration of industrial property
  • fee for the use of state property in trust     
  • fee for state natural resources        
  • inheritance tax
  • surplus charge in the sugar sector      
  • state fee
  • stamp duty

In Lithuania the main tax authority is State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania. Other institutions are the Customs Authorities of the Republic of Lithuania, the Ministry of Environment, Ministry of Agriculture and the State Social Insurance Fund Board.

Lithuania has signed 53 international tax treaties.

On May 1, 2004, Lithuania, on joining the EU, adopted its „acquis communautaire“  (EU law and its application to practice).  

It is important to note that the rules of indirect taxation, such as VAT and customs duties, are harmonized at  EU level.

However direct taxes are not harmonized at EU level, except for certain taxation issues of individuals, corporations and capital. However, it must be noted that Lithuanian and other EU countries' tax systems and international tax treaties must not contravene the fundamental principles of the EU Treaty, such as free movement of workers, services and capital, freedom of establishment and non-discrimination principle.

Interaction of Lithuanian tax law system with other tax systems is shown below: firstly, EU legal rules, regulating various taxation issues, have the highest legal validity in Lithuania, that is to say, that Lithuanian tax treaties and Lithuanian national tax system must not contravene EU law; secondly, international tax treaties have higher legal validity over national tax law provisions.