Lithuania Corporate Income Tax

Corporate income tax (pelno mokestis) - 2025

The standard corporate income tax rate is 16% for 2025 (rising to 17% in 2026). Small companies and start-ups can qualify for reduced or 0% rates. Tax is on worldwide profit for resident companies.

• Standard CIT rate — 16% (2025); 17% from 1 January 2026 percent (Law on Corporate Income Tax)
• Reduced rate for small companies — 6% (2025) for companies with fewer than 10 employees and gross annual revenue below EUR 300,000; rises to 7% from 2026 percent (Law on Corporate Income Tax)
• Start-up 0% rate (first period) — 0% for the first tax period for qualifying new small companies (extended to first two periods from 2026) percent (Law on Corporate Income Tax)
• Tax base — Resident companies: worldwide taxable profit (income less allowable deductions); non-resident: Lithuanian-source / PE profit (Law on Corporate Income Tax)
• Withholding tax on dividends — 15% (2025); exempt under participation exemption where recipient holds at least 10% of voting shares for 12+ months continuously percent (Law on Corporate Income Tax)
• Withholding tax on interest — 0% on interest paid to EEA or tax-treaty country entities; 10% otherwise percent (Law on Corporate Income Tax)
• Withholding tax on royalties — 10% standard; 0% to qualifying related EU parties under the Interest and Royalties Directive percent (Law on Corporate Income Tax)
• Treaty WHT relief — Reduced/exempt WHT under double-tax treaties; residence certificate (Form DAS-1) required (Form DAS-1 (residence certificate))
• Annual CIT return deadline — 15th day of the 6th month after year-end (15 June for calendar-year taxpayers) (Law on Corporate Income Tax)
• Advance CIT payments — Advance returns due by 15th day of 3rd and 9th months of the tax period (typically 15 March and 15 September) (Law on Corporate Income Tax)
• Final CIT payment deadline — By the annual return deadline (15 June for calendar-year companies) (Law on Corporate Income Tax)