Withholding taxes

10% withholding tax is imposed on interest and royalties paid to foreign (non-resident) taxable entities, compensations for violation of the copyright or neighbouring rights, except for interests on deposits and subordinated loans that meets the criteria established by the Lithuanian Bank that are not subject to taxation. Interest on the Government securities is exempt from taxation as well.

0% withholding tax is imposed on interest paid to EEA registered entities and entities established in countries where Lithuania has double tax avoidance treaties in place.

0% withholding tax is imposed on royalties and compensations for violation of the copyright or neighbouring rights paid to the EU registered company if the paying and receiving companies or the third EU company owning them both are related at least 2 years with holding of at least 25% in the capital.

15% withholding tax is imposed on income of foreign entities received on distributed profits (without any deductions), income from the sale, transfer or rent of immovable property situated in the territory of Lithuania; income received from the sport or entertainment activity and annual bonus paid for the activity of members of the supervisory council.