Information to businesses regarding COVID-19
Taking into account the established restrictions on the performance of certain activities due to COVID-19, the State Tax Inspectorate has compiled a list of economic activities that were affected by COVID-19. Taxpayers who are on this list and if from 16 March to 31 December they will be subject to taxes, they will automatically (without any requests) be given the following aids:
- release from late payment of interest,
- tax recovery will not be initiated.
Procedure for the application of tax aid measures established by the Order No VA-27 of the Head of the STI under the Ministry of Finance of 26 March 2020.
You can download the updated list by clicking here, (updated on 9 September) or view it online here.
You can view the listed economic activities here.
The list includes those companies whose activities have been directly terminated/restricted due to quarantine, based on Government's resolutions (No. 207 of 14 March 2020 and No. 222 of 16 March 2020).
Undertakings having experienced negative consequences due to COVID-19 should pay mandatory taxed to the national budget to the extent of their ability to do so. After 31 December, such undertakings will have another two months to pay taxes or enter into an interest-free Tax Loan Agreement (TLA).
If undertakings wish to pay in instalments the amounts of taxes due, that they have incurred during the quarantine and/or emergency situation (in other words, to enter into a Tax Loan Agreement) already now, this can be done by submitting an application for concluding a Tax Loan Agreement via My STI system (in the column Services > Order service > Tax accounting and payments > Deferral of payment deadlines for tax arrears or payment in instalments).
After assessing the reasons set out in the application and/or other available information, the tax authority may in part uphold the application for the conclusion of a TLA (for example, may shorten the deadline for payment in instalments). The concluded TLA may be terminated if the undertaking fails to comply with the terms of the TLA.
Undertakings may apply for the conclusion of a TLA before 31 December and another 2 months after the lifting of the emergency situation.
Entrepreneurs who did not find themselves among the declared taxpayers, but also having suffered negative consequences due to COVID-19 may apply to the tax authority for the application of aid measures to their business by submitting an application in a simplified form, in which they must substantiate the fact of having suffered adverse consequences. The said form may be submitted via My STI (in the column Services > Order service > Inquiries), send it by e-mail to [email protected] or by regular mail.
Simplified request form (download).
For the convenience of entrepreneurs, the STI publishes and updates the list of companies whose requests for tax aid measures have been approved by the STI on a weekly basis. They are subject to the same aid measures and provisions as the companies that were automatically listed without a request. The list is published here. (updated on 9 September)
If entrepreneurs have tax debts that they have incurred before the quarantine was declared, but are currently unable to pay them, they should apply to the STI for the conclusion of a Tax Loan Agreement (TLA), and those having already concluded such agreements may submit an application for the change of the TLA schedule and terms.
Information on how taxes and other contributions to the STI accounts were paid by undertakings listed on the lists of legal entities that are subject to tax aid measures can be viewed on the website of the Department of Statistics https://arcg.is/05DHL00
The monthly data for 2020 and for the respective months of 2019:
- of legal entities that are subject to tax aid measures without submitting an application,
- of legal entities that are subject to tax aid measures under an application submitted,
- the joint payment of taxes on both lists
in the following sections:
- in each economic activity
- in each municipality.
TAX BENEFITS FOR THE GRANTED AID
The aid provided by entrepreneurs, fund-raising charities and support funds that support medical institutions in cash, food or safety measures is recognised as support for tax purposes and will allow entrepreneurs to use tax benefits; medics and medical institutions receiving the support will not be subject to any additional taxes. More information (in Lithuanian language) on this topic - here.
More information on tax benefits for the granted aid during the COVID-19 outbreak can be found on the Customs of the Republic of Lithuania website.
FOR THE USERS OF CASH REGISTERS
Taxpayers who do not use cash registers for more than 10 working days due to declared emergency situation and quarantine are not obliged to notify the tax administrator of their temporary non-use.
It is not necessary to report that cash register is not used temporary due to an emergency declared in the country until this situation in Lithuania will be terminated. Once the end of the emergency situation will be declared, the previous order, which has been in force so far, will come into force.
If the activity where the cash register is used is terminated not due to declared emergency or quarantine, this must be notified by e-mail in accordance with the "single-window" principle, which is to notify any county's State Tax Inspectorate.
VAT REPORT ADJUSTMENT
More information (in Lithuanian language) on the adjustment of the value added tax report when perishable goods have been lost due to quarantine can be found here.
EXEMPTION FROM THE SUBMISSION OF TAX RETURN
In cases where taxpayers are temporarily inactive (does not conclude and execute any transactions; does not make settlements with economic entities; does not receive income other than interest on funds in the taxpayer's bank accounts), they may be temporarily exempted from submitting the tax return and/or other documents specified in the legislation.
All relevant information (in Lithuanian language) on changes in the issuance of excise documents and the provision of services can be found here.
Information (in Lithuanian language) on making an inventory can be found here.
RELEVANT "SODRA" INFORMATION
Information about the relief for "Sodra" contributions and their deferrals can be found here.
Frequently asked questions (in Lithuanian language) can be found here.