Lithuania

In 2019, we celebrated the 550th anniversary of the Union of Lublin that established the Polish-Lithuanian Commonwealth, which included the territories of today\'s Ukraine, Belarus, Lithuania, and even Latvia. In reference to those events, which bound Poland to those lands for the next two hundred years, the establishment of the Lublin Triangle took place in July 2020.

Lithuania ranks sixth in the Global Tax Competitiveness Index but it has the least attractive corporate tax regime in the Baltic region. It taxes retained and reinvested profits and applies a personal income tax when dividends are paid out. The effective combined tax rate stands at 27.7%. Estonia and Latvia tax only redistributed profits, at 20%.

On May 11, 2021, Lithuania celebrates The Day of Respect for the Taxpayers. On this occasion, the Lithuanian Free Market Institute (LFMI) invited everyone to thank all taxpayers for their contribution to the welfare of the country.

In recent years, there has been a significant growth of an interest in the gig economy built upon the premise of online platforms that connect customers with service suppliers. Platform work brings more opportunities to traditional businesses by closely connecting suppliers and customers and reducing transaction frictions.

The second lockdown in Lithuania is no different from the first one: there are no clear principles for economic relief, individual groups are fighting for their own interests, and the government is forced to constantly alleviate the emerging effects of the quarantine. But what if lockdowns persisted?

The Lithuanian government has enlisted Lithuanian Free Market Institute’s (LFMI) proposal for adopting the Estonian corporate income tax model among Lithuania\'s main tax reform alternatives.

The year 2000 was challenging not only for the global economy, but also for economists. They were also hit by the crisis: economic forecasts vanished within a day. However, the need to assess the economic situation and likely scenarios of economic development remained.

The handbook delivered a long-term policy vision and immediate recommendations for the new parliament to preserve and create new opportunities for people in Lithuania to pursue well-being for themselves, their families and communities.

Lithuania’s new coalition government comprised of the conservative Homeland Union-Christian Democrats, the Freedom Party, and the Lithuanian Liberal Movement has put this reform option back on Lithuania’s agenda.

Prior to the crisis triggered by the COVID-19 outbreak, the Lithuanian economy had been enjoying a rapid growth. Yet, while the number of available jobs had been increasing, the number of unemployed had remained steadily high.