Lithuania Tax Agency Issues Letter on Amendments to VAT, Corporate Income Tax Regulations for Passenger Cars

The Lithuanian State Tax Inspectorate Jan. 21 issued Letter No. R-249, on amendments to VAT and corporate income tax regulations for passenger cars. The amendments include: 1) rules for VAT deductions on the purchase or import of passenger cars, limited by CO2 emissions and a clarification on VAT deductions for these vehicles; 2) rules on expenses for the purchase and lease of passenger cars, with different limits based on CO2 emissions, and deductible amounts; 3) rules for cars used by employees for personal purposes, recognizing this benefit as income in kind; 4) limitations on the deduction of rental costs for ...