Lithuania Tax Agency Posts Updated Summary Explanation on Corporate Income Taxation of Dividends

The Lithuanian State Tax Inspectorate Oct. 28 posted an updated summary explanation for the Law on Corporate Income Tax, on amendments under Law No. XV-285/2025 regarding the taxation of dividends for Lithuanian entities and permanent establishments (PEs). The update includes: 1) the increase to 17 percent from 16 percent in the corporate income tax rate for dividends paid to Lithuanian entities and PEs, from Jan. 1, 2026; 2) that withholding taxes for the dividends must be calculated and paid by the 15th day of the month following the month in which the dividends were received; 3) a clarification that the ...