Lithuania Tax Deductions
In Lithuanian, in addition to the deductions/credits mentioned above, deductions and business expenses may be claimed as specified below:
- Offset of losses: - A loss may be offset without limit forward, up to 70% of the annual taxable income. Losses from securities may be offset five years forward, only against profits from securities.
It is not possible to offset a loss backward. - Consolidated Statements - in Lithuania, a loss in one company of a group may not be set against a profit in another company in the group.
There is no consolidated filing of tax returns. - Financing expenses - interest on credit is allowable for tax.
Nevertheless, interest paid to a company owning more than 50% of the paying company is not allowed for the debt above debt to equity ratio of 4:1.
Depreciation of Fixed Assets in Lithuanian
- The straight-line method or the "double depreciated balance" method may be used in Lithuanian.- The rates of depreciation in Lithuania:
| Class of Asset | Depreciation (years) |
|---|---|
| New and renovated buildings | 8 |
| Residential buildings | 20 |
| Machinery and equipment | 5-15 |
| Computer equipment | 3 |
| Computer software | 3 |
| Cars | 4-10 |
| Rights | 3 |
| Goodwill | 15 |