How dividends received are taxed and who has to pay income tax

Dividends are taxed at an income tax rate of 15%.

Lithuanian companies must calculate, withhold and pay 15% income tax on the amount of dividends paid.

Important: If interest is paid to residents of foreign countries with which Lithuania has concluded a treaty for the avoidance of double taxation, then a lower income tax rate under the respective treaty may apply.

The treaty tax rate is applied by the interest payer on the basis of your application for withholding tax relief (Form FR0021).