Lithuania Tax Agency Announces Updated Commentary on Group Tax Loss Transfers, Applicable Deduction Limit

The Lithuanian State Tax Inspectorate March 26 announced an updated commentary on the transfer of tax losses between group entities and the deduction limit for such losses. The updated commentary: 1) clarifies that tax losses may be transferred within a group only if the parent company directly or indirectly owns at least two-thirds of each participating subsidiary on the last day of the relevant tax period and on the transfer date, and if the entities belonged to the group for the required period; 2) explains that losses may be transferred vertically or horizontally, including in parts to several group entities, ...