Starting from 2017 amendments to the Law on Corporate Income Tax (LCIT) are in force.
New incentives additional to those already provided in the LCIT will apply to service companies operating in free economic zones (FEZ).
Service companies operating in FEZ now need not pay corporate income tax for six years and can pay corporate income tax reduced by 50 percent for another 10 years.
Requirements to qualify for incentives:
1. Capital investment by service companies must exceed EUR 100 000. Relief may apply only if a FEZ company has an auditor’s report confirming the required amount of capital investment.
2. The number of full time employees should be at least 20.
3. Tax incentives can apply to companies delivering accounting, administrative and support, human resources, architectural and engineering services and related technical consulting services, but at least 75 percent of company revenue in a given fiscal year must come from these activities.
These incentives will make the Lithuanian environment more attractive to investors.
Furthermore, companies operating in FEZ are exempt from tax on immovable property.
If you have questions about incentives for FEZ companies or need help to interpret whether your company is eligible for benefit, feel free to contact us. We will be more than happy to assist.