In April 2008 special tax scheme for research and development (R&D) was introduced as Lithuania aims at boosting the high value-added generating industries and encouraging business to invest in the areas, like R&D.
The following incentives are applied to companies investing into R&D:
- triple deduction - expenses incurred by companies while carrying out R&D as well as by acquiring R&D carried out in EEA countries or countries with DTA can be deducted from taxable income thrice.
- super-accelerated depreciation - acquisition price of fixed assets used in the R&D activities can be written-off within two years.
- eligibility - all investments into R&D disregarding the type of company or the amount of the investment qualify.
Incentives applicable while calculating taxable profit for 2008 and thereinafter.
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More information available at Tax Department,
Direct Taxes and International Taxation Division,
ph. +370 5 2390291
Updated: 2008-09-12 11:01
