How income from performing and sporting activities carried out in Lithuania is taxed

Performing activities refer to activities of a performing artist (actor, singer, musician, conductor, dancer or any other person acting, singing, reading, reciting or otherwise giving literary, artistic, folklore or circus performances), involving preparation for and participation in public appearances.

Income from performing and sporting activities carried out in Lithuania is subject to corporate income tax at source only if the ultimate recipient of the income is a foreign unit operating in Lithuania other than through a permanent establishment, and carrying out performing and sporting activities (e.g. an orchestra, troupe or team). Such foreign unit income is taxed at a corporate income tax rate of 15%.  

Foreign units that receive income from performing and sporting activities carried out 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 corporate income tax recalculation, 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 expenses incurred for the performing or sporting activity carried out in Lithuania, or documents supporting the cost on acquisition and sale of 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.