This article provides an authoritative overview of corporate tax rules and rates in Lithuania for the 2025 fiscal year. The information below is presented to aid international professionals and business owners in understanding the main tax implications for Lithuanian companies.
Core Features of Lithuania’s Corporate Tax Regime (2025)
Lithuania’s corporate income tax system operates on a flat-rate basis. The primary tax characteristics and rates applicable in 2025 are outlined below for straightforward comparison.
| Tax Component | Detail (EUR) | Detail (USD)* |
|---|---|---|
| Corporate Tax Type | Flat | Flat |
| Standard Corporate Tax Rate (%) | 16% | 16% |
| Applicable To | Corporate profits | Corporate profits |
| Currency | € (EUR) | $ (USD) |
| Special Surtax (Credit Institutions Only) | 5% on profits exceeding €2,000,000 | 5% on profits exceeding $2,130,000 (rate: 1 EUR = 1.065 USD) |
| Total Effective Rate for Credit Institutions (on taxable profits above threshold) | 21% | 21% |
| Tax Brackets | Not applicable | Not applicable |
*USD conversions are approximate, using a mid-2025 exchange rate of 1 EUR = 1.065 USD.
Flat Corporate Tax Rate
The cornerstone of Lithuania’s business tax system is the flat rate corporate income tax of 16%. This rate applies to most corporate taxpayers, regardless of size or profit level. There are no progressive brackets within the main corporate tax system, simplifying calculations and planning.
Surtax on Credit Institutions
Credit institutions operating in Lithuania are subject to an additional tax rule in 2025. A 5% surtax applies to any taxable profits exceeding €2,000,000 ($2,130,000). This is levied on top of the standard 16% corporate tax, which means affected profits are taxed at a combined 21%. This regime targets banks and similar institutions, reflecting sector-specific tax policy.
Assessment and Other Key Details
- Assessment Basis: The tax is assessed on corporate profits. Income categories, exemptions, and reliefs are subject to standard Lithuanian tax provisions.
- Currency: All official filings and payments must be made in euros (€). For international planning, USD equivalents are referenced in this article for clarity.
- Holding Periods: There are no published minimum or maximum holding period requirements influencing the corporate tax regime as of 2025.
Summary Table: Key Corporate Tax Rates in Lithuania (2025)
| Entity Type / Condition | Tax Rate (%) | Threshold (EUR) | Threshold (USD) |
|---|---|---|---|
| Standard Companies | 16% | – | – |
| Credit Institutions (profits above threshold) | 21% | €2,000,000 | $2,130,000 |
Pro Tips for Navigating Lithuania’s Corporate Taxation
- Review annual taxable profits carefully, especially if operating in the financial sector, to ensure timely calculation and payment of the 5% surtax above €2,000,000 ($2,130,000).
- Use euros (€) for all tax assessments and filings to avoid currency conversion errors, and periodically check the applicable exchange rate if comparative planning in other currencies is needed.
- Since no progressive brackets apply, the flat-rate structure allows straightforward tax modeling for business plans, budgeting, and forecasting.
- Stay informed on sector-specific rules, as only credit institutions face the additional surtax—other businesses remain subject solely to the 16% corporate tax rate.
Official Resources
For the most current and detailed guidance on corporate tax regulations in Lithuania, refer to the Ministry of Finance of the Republic of Lithuania.
In summary, the Lithuanian corporate tax regime for 2025 features a predictably flat standard rate of 16%, with a narrowly targeted surtax for major credit institutions. The simplicity of the flat-tax approach stands out, apart from specific sectoral rules. Businesses operating across sectors can generally expect consistent, transparent tax treatment, while those in financial services should account for the supplementary levy when planning for higher profits.