Starting in 2025, corporate income tax (CIT) rates will increase:
— The reduced CIT rate will rise to 6% (previously 5%).
— The standard CIT rate will rise to 16% (previously 15%).
Previously, the sale of “old” buildings (those completed more than 24 months ago) was exempt from VAT. However, incomplete buildings (e.g., those not registered as 100% complete) were not considered “old.”
The State Tax Inspectorate (VMI) has updated its commentary on Article 32 of the VAT Act, indicating that incomplete buildings used for more than 24 months may also be considered “old” and may be sold without VAT.
From January 1, 2025:
— The minimum monthly wage (MMW) will increase to €1,038 (up from €924), a rise of €114 or 12%.
— The minimum hourly rate will increase to €6.35 (up from €5.65), a rise of €0.70 or 12%.
From January 1, 2025:
— The average monthly gross wage (AMW) will increase to €2,108.88 (up from €1,902.70).
— The annual social security cap, set at 60 times the AMW, will rise to €126,532.80 (up from €114,162).
Note: Income from employment exceeding the 60 AMW threshold will be taxed at a 32% personal income tax rate (income below the threshold is taxed at 20%).
From January 1, 2025, a new framework will apply for allowable expenses related to company car purchases. The deductible amount will depend on the car’s CO2 emissions. More details in Lithuanian are available here
From January 1, 2025:
— Employers may require employees to work overtime only with their written consent (Article 119, Clause 2).
— The rules for agreements on additional work will change. More details in Lithuanian are available here
We will be happy to assist you with accounting, taxation or finance matters
Get in touch with us today +370 5 250 2657 / info@audita.lt
