Lithuania

Lithuania's Rankings
CategoryRankScore
Overall Rank676.46
Corporate Taxes483.43
Individual Taxes780.98
Consumption Taxes2462.72
Property Taxes775.54
Crossborder Taxes2372.48

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

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