How are income, received by a foreign unit, from sale, other transfer of ownership or lease of immovable property located in the territory of the Republic of Lithuania taxed?

When foreign units receive income from the sale or other transfer of ownership or lease of immovable property located in the territory of the Republic of Lithuania other than through a permanent establishment, such income is taxed at a corporate income tax rate of 15%.

Foreign units that receive income from the sale or other transfer of ownership of immovable property located in the territory of the Republic of Lithuania have the right to apply to the tax authorities of Lithuania, based in the territory where the person withholding corporate income tax is registered, for recalculation of corporate income tax, i.e. to pay corporate income tax on the taxable profit.

In this case, foreign units must submit to the tax authorities a free-form application for a tax overpayment refund with documents supporting the purchase and sale price of the immovable property, together with a schedule of such documents.

The procedure for recalculating corporate income tax paid on foreign unit income was approved by Order No VA-123 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania on 31 December 2010.