TAXATION OF INCOME RECEIVED FROM A VIRTUAL CURRENCY
DEFINITION OF 'A VIRTUAL CURRENCY'Usually, when it comes to 'a virtual currency', this relates mainly to such measures as Bitcoin, Ethereum, Ripple, Litecoin, etc. For tax purposes, any instrument which by its characteristics is analogical to specified measures (i. e....
Tax risks when a holding company is used in a group structure
In practice, there are more and more cases when holding companies are challenged by the State Tax Inspectorate (hereinafter – the STI) on the grounds that the legal entity established in a foreign jurisdiction is only a formal, fake, intermediate, artificial entity...
Using a car for business or personal purposes – what do the Tax Authorities check?
A tax authority that has information that cars are registered in a company's name often raises questions about the circumstances of the use of these cars in order to assess whether the cars are actually used for the company's economic activity and whether they are...
UBO register
All legal entities established in Lithuania (except for those whose sole participant is the state or a municipality) have to submit information on their final beneficiaries to the Registers Centre, the administrator of the Beneficiary Information System for Legal...
Employee Stock Options
In economically strong countries options have been known for several decades, but in Lithuania, they have become more widely used only recently, with the change in the Law of the Republic of Lithuania on Personal Income Tax (hereinafter – Law on PIT) which introduced...
Transfer pricing changes from 2020
In October 2020 Lithuania has adopted amendments to the national rules on transfer pricing: A mark-up of 5 % is allowed for low value-adding services; The rules introduce the concept of “hard to value intangibles“ and exceptions for price adjustments of these assets;...
DAC-6 Compliance
Purpose The EU directive on Mandatory Disclosure Rules (MDR) for intermediaries (DAC6) is against potentially aggressive tax arrangements and opaque structures. The directive requires mandatory reporting of cross-border arrangements and considerably impacts...
Transfer pricing requirements in Lithuania
The OECD’s base erosion and profit shifting (BEPS) project highly impacted transfer pricing legislation in the world. Lithuania is not exemption. Following BEPS actions the new transfer pricing documentation requirements were introduced 31 December 2018, and apply to...