Lithuania
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 6 | 76.46 |
| Corporate Taxes | 4 | 83.43 |
| Individual Taxes | 7 | 80.98 |
| Consumption Taxes | 24 | 62.72 |
| Property Taxes | 7 | 75.54 |
| Crossborder Taxes | 23 | 72.48 |
Lithuania ranks 6th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
Strengths
- Business investments in machinery, buildings, and intangibles receive better-than-average tax treatment.
- Lithuania's corporate tax rate is 15 percent, well below the OECD average of 22.9 percent.
- Lithuania's taxes on labor are relatively flat, allowing the government to raise revenue from taxes on workers with very few distortions.
Weaknesses
- Lithuania has tax treaties with just 54 countries, below the OECD average (75 countries).
- Lithuania has both a patent box and a super deduction for Research and Development expenditures.
- Multinational businesses face strict thin capitalization rules.
Learn more about the tax system in Lithuania