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Declaring income in Lithuania. New requirements for investors.
Lithuanian law on tax administration introduced a new requirement which is significant to investors doing Business in Lithuania. Article 421 of law on tax administration provides that permanent residents of Lithuania (description of resident is given below), are obliged to submit information to Lithuanian Tax Authority once a year regarding the transactions which satisfy all of the below mentioned criteria:
Information regarding the income should be submitted to Lithuanian Tax Authority only if it wasn‘t declared in resident‘s annual income declaration. Resident who fails to submit information to Lithuanian Tax Authority by May 1st of the successive year regarding the income received under the abovementioned contracts, such contracts can’t be used to justify the source of one‘s income or means of property acquisition. On late submission of declaration, information is not evaluated if Tax Authority has already commenced resident‘s tax investigation For the purpose of application of Article 421, permanent resident of Lithuania is held to be:
The rule enshrined in Article 421 of Lithuanian law on tax administration is applicable since 1st January 2013. Requirement to submit information on income received under contracts is applicable for income received in 2012 and the following years.
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For questions, please, contact Valters Gencs, attorney at law at info@gencs.eu
The material contained here is not to be construed as legal advice or opinion.