Lithuania Corporate Tax in 2026: Rates, Deadlines and Small Business Relief

Lithuania corporate tax in 2026 is often described as a 17% system, but a company’s actual result depends on its taxable profit, eligibility for small-business relief, deductible expenses and filing timetable. The reduced start-up rules can be valuable, yet they are conditional and should not be treated as an automatic tax holiday for every newly registered UAB.

Corporate income tax rates in Lithuania for 2026

The standard corporate income tax rate is 17% of taxable profit. For eligible entities whose income for the tax period does not exceed €300,000, taxable profit may qualify for a 0% rate in the first and second tax periods, followed by 7% in later periods. The law contains exceptions, so the turnover figure alone is not enough to confirm eligibility.

Check ownership and control links, related companies, business continuity and the statutory conditions before relying on the reduced rates. Dividends and other distributed profits are generally subject to a separate 17% rate at company level; the shareholder’s own tax position is a distinct question.

What counts as taxable profit?

Corporate tax is calculated on taxable profit, not simply on cash left in the bank or gross sales. In general, the calculation starts with accounting results and applies tax adjustments: taxable income, non-taxable income, allowable deductions, limited deductions, losses and other rules in the Corporate Income Tax Law. Keep contracts, invoices and evidence showing that expenses were incurred for the business.

Cross-border groups should also review transfer pricing, permanent-establishment exposure, withholding tax and the treatment of foreign income. A Lithuanian company can have tax obligations on income earned abroad, while a foreign company can be taxed on Lithuanian-source income or activity conducted through a permanent establishment.

Tax returns and payment deadlines

The tax period is generally the calendar year, although another period may be approved in certain circumstances. The annual corporate income tax return and tax due are generally filed and paid by the 15th day of the sixth month after the tax period ends. Companies may also have to pay advance corporate income tax; the rules depend on prior-period results and the selected calculation method. New companies and entities below the relevant threshold may be exempt from advance payments.

Build these dates into the accounting calendar early. The company still needs to maintain accounting records and prepare financial statements even when it has little or no trading activity. A nil or low-profit year does not automatically remove filing duties.

Practical checklist for a Lithuanian company

• Estimate taxable profit, not just revenue or bank balance.
• Test the €300,000 income condition and other eligibility requirements before using the 0% or 7% rates.
• Separate company-level tax from tax on dividends and other shareholder income.
• Retain evidence for deductible expenses and review non-deductible or limited items.
• Check whether advance payments apply and record annual filing and payment dates.
• Review cross-border activity, related-party transactions and Lithuanian-source income.
• Ask an accountant to validate tax adjustments before filing.

Official Lithuanian tax sources

• Ministry of Finance: corporate income tax rates, tax base and deadlines
• Ministry of Finance: investment and start-up tax incentives
• VMI: corporate income tax filing and advance payments
• VMI: State Tax Inspectorate services and guidance
• Ministry of Finance: financial statements and reporting

Planning a company in Lithuania?

Corporate tax is one part of a wider setup that includes registration, accounting, VAT and payroll. Read our Lithuanian company information and confirm your company’s tax position with a Lithuanian accountant or VMI. This guide is general information, not tax or legal advice; current legislation and eligibility conditions should be checked for each business.

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