Taxation

New tax laws drafted following the general taxation principles and harmonized with EU tax legislation were adopted and came into effect in Lithuania with the aim of developing a sustainable up-to-date taxation system enabling rapid economic growth and ensuring stable budgetary income, fair and proportional tax distribution, and fair competition.

The principles of taxation which were taken into account in the development of the Lithuanian taxation system and which may not be violated by any tax related legal act include: tax payer equality (in the application of tax laws, all taxpayers are equal with respect to provisions of the laws); equity and universal application (taxes must be paid by all taxpayers in accordance with the procedure established in tax laws; establishing tax relief of an individual nature is prohibited; the tax administrator must apply the criterion of fairness in tax administration); and clarity of taxation (the content of a tax liability must be clearly defined in the laws and regulations).