Permanent Establishment

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...

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,...

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...

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...

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 –...

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...

Tax dispute regarding personal income tax

We have developed an action strategy for one of the shareholders of a well-known group of companies in Lithuania in order to avoid an additional tax burden after the abolition of the personal income tax (PIT) incentive on the sale of the...

Tax dispute during constructions

The practice of tax disputes shows that the most common issues raised (disputed) by the STI are the right to deduct VAT, the validity of allowed deductions, and the satisfaction of the private needs of owners/managers. TaxLink successful...

Flattening of the group structure

The trend of recent years, when, in order to optimize taxes, the aim is not to create a structure of a group of companies that crosses the borders of Lithuania, but to “return” companies “held” abroad (holdings, SPVs) and other i...

Financial and Tax Due Diligence

Before acquiring a specific company or part of its business, both Lithuanian and foreign investors often seek to find out what financial, tax, and legal risks may exist due to the company’s “history”. TaxLink has extens...

Permanent Establishment

Other experience