Lithuania: Domestic Corporate Taxation
Scope of Income Tax
Taxable entities are resident companies (including partnerships) and the permanent establishments of non-residents that derive income from a Lithuanian source.
The criterion for establishing a company's residence for tax purposes is its incorporation in Lithuania. A permanent establishment is created if an entity is engaged in commercial activity in Lithuania either directly or through a dependent agent, or if it is engaged in construction work.
Corporate income tax applies to a resident entity's worldwide income, and to the Lithuanian-source income of a non-resident entity. Consolidation is not permitted.