Lithuania

Lithuania's Rankings
CategoryRankScore
Overall Rank481.52
Corporate Taxes385.62
Individual Taxes396.79
Consumption Taxes2462.25
Property Taxes779.65
International Tax Rules1776.99

Lithuania ranks 4th overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


Strengths

  • Business investments in machinery, buildings, and intangibles receive better-than-average tax treatment.
  • Lithuania's corporate tax rate is 15 percent, well below the OECD average of 23.6 percent.
  • Lithuania's taxes on labor are relatively flat, allowing the government to raise revenue from taxes on workers with very few distortions.

Weaknesses

  • Lithuania has tax treaties with just 54 countries, below the OECD average (77 countries).
  • Lithuania has both a patent box and a super deduction for Research and Development expenditures.
  • Multinational businesses face strict thin capitalization rules.

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