More Tax Benefits for Investors

The Parliament of Lithuania has agreed to consider a draft law on Investment Promotion which stipulates several tax benefits for newly established companies creating jobs. If adopted by the Parliament the new law will envisage a reduction in personal income tax for employees of newly established companies. Such companies would pay reduced insurance tax in the first 4 years of their activities. Newly established companies would not have to pay corporate tax either till their profits exceed investments into new activities. Those who invest more than LTL 1 million ( USD 250,000) would not have to pay land rent tax for 5 years and their direct tax tariffs (except VAT and excise) will not be increased in the period of 10 years. There will be certain limitations, however, as to the type of companies that will enjoy such preferential taxes.