tax rate

A global minimum tax model will reduce tax competition and put companies in a race for public subsidies. The idea of a minimum corporate tax rate of 15% for multinational groups, floating around in international platforms since 2013, has been implemented from the beginning of this year. The Organisation for Economic Co-operation and Development agreed on a new tax regime in 2021, followed a year later by the European Commission.

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.

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.