Lithuania Tax Agency Issues Letter on Commentary Clarifying Taxation of Income Received Through Investment Accounts

The Lithuanian State Tax Inspectorate Aug. 25 commentary on individual income taxation, for income received through investment accounts, effective Jan. 1, 2025. The commentary includes that: 1) income tax applies to investment account income only when funds are withdrawn; 2) qualifying funds subject to tax at withdrawal must be invested in listed eligible products, not unlisted shares, real estate, or cryptocurrencies, which are taxed immediately; 3) taxable income includes interest and capital gains, but dividends are taxed separately; 4) transfers between investment accounts aren’t taxable and closure or conversion to a regular account triggers tax on remaining funds and unsold ...