Who must withhold and pay corporate income tax on income sourced in Lithuania and paid to foreign units

Corporate income tax at source on income sourced in Lithuania and paid to foreign units must be withheld and paid to the budget by the person who made the payments, i.e. a Lithuanian unit, permanent establishment or a resident of Lithuania.

Exception: When foreign units which do not operate through a permanent establishment in Lithuania transfer immovable property located in Lithuania to other foreign units which also do not operate through a permanent establishment in Lithuania, the foreign units which receive the income are required to file corporate income tax return and pay the tax at source. For the purposes of this requirement, such foreign units must register in the Register of Taxpayers (by submitting Form FR0227).

Form FR0313 (for foreign taxable unit income declaration and corporate income tax calculation thereon) must be submitted no later than within 15 days after the end of the month in which income was received (please refer to the following link: https://www.vmi.lt/evmi/formos).