Lithuania: Domestic Corporate Taxation
Calculation of Taxable Base
Taxable income includes trading income, passive income, capital gains and the profits of CFCs (Controlled Foreign Corporations). Dividends are included in taxable income unless they are covered by Lithuania's participation exemption, which applies to EEA-source dividends and also more generally to a minimum 10% participation, unless the dividends were not taxed at source. There is also an exemption for some types of capital gains resulting from the sale of a participation when the Lithuanian seller has owned at least 25% of the company concerned.
Operating losses can be carried forward indefinitely; losses on the sale of securities can be carried forward for five years and can only be offset against comparable profits.
There is no alternative minimum tax.
Normal business expenses are deductible from income. Tax credits are available for various types of investment. Foreign tax credits are available up to the level of Lithuanian tax that would have been payable on the income concerned.