What corporate income tax reliefs are available to companies

Corporate income tax reliefs may be linked to payments that allow for a reduction in taxable profits: 

  • for a manufacturing company employing persons with reduced working capacity.  A company whose income sourced from own production accounts for more than 50 percent of the total income generated, and which employs persons with reduced working capacity, is allowed a corporate income tax reduction. For more detailed information, please see here (only in Lithuanian).
  • for a company registered in a free economic zone. A company operating in a free economic zone, whose average number of employees and capital investments meets the statutory thresholds, is allowed to be exempt from corporate income tax for a certain number of years, and to apply a reduced corporate income tax rate thereafter. For more detailed information, please see here (only in Lithuanian).
  • on an investment project carried out by the company. A company which invests in fixed assets for the production of new or additional products or services, or for increasing capacity, or for the introduction of a new process, or for the substantial modification of an existing (or part thereof) process, is allowed to reduce the taxable profits by the expenses incurred. For more detailed information, please see here (only in Lithuanian).
  • on research and/or experimental development (R&D) activities carried out by the company. Expenses, other than depreciation or amortization of fixed assets, incurred in R&D activities may be deducted from income for up to three times, provided that the R&D activities are linked to the usual or foreseeable activities of the company, from which it generates, or is expected to generate income or other economic benefits. For more detailed information, please see here (only in Lithuanian). 
  • on the amount of funds actually granted to a Lithuanian film producer for the production of a film (or part thereof)  during the period of 2019 to 2023. For the purposes of calculating corporate income tax, if the conditions are met, gratuitously granted funds for the production of a film (or part thereof) may be deducted from taxable income, and the amount of corporate income tax payable may be reduced by up to 75%. For more detailed information, please see here (only in Lithuanian).