Lithuania’s tax system is ranked the sixth most competitive and neutral in the OECD according to the Tax Foundation’s International Tax Competitiveness Index 2020 which was released on October 15.
During the global financial crisis, public pensions in Lithuania were cut to reduce further strain on the government budget. The Lithuanian government is now considering backpaying these pensions.
Work is taxed with the highest percentage in Poland. Effective tax rate for work exceeds 40% – the rate similar to the taxation of vodka.