The State Tax Inspectorate (STI) announced tax measures for business due to the COVID-19 situation.
Possibility to postpone tax payment terms
The STI has announced a list of companies that should be deemed to be affected by COVID-19. The list is available for downloading on the VMI website. The following tax payment term extension measures would apply to these companies:
- Tax recovery would not be started. The STI would not start tax recovery if these companies have tax debts arising from a declaration filed on 16 March or later.
- No interest calculated. No default interest would be calculated for late payment of taxes.
- Accumulated taxes would have to be paid within two months of the end of the quarantine or a tax credit agreement could be concluded. Companies that cannot pay accumulated taxes within a two-month period running from the end of the quarantine could apply to the STI for postponement of tax payment terms by concluding a tax credit agreement. The STI could be asked to extend the payment term for Corporate Income Tax, VAT, Personal Income Tax and other taxes administered by the STI. It would also be possible to postpone payment terms for social security contributions.
- No interest would be applied to a tax credit agreement.
Options for companies that are not on the list. Companies not on the list of companies deemed to be affected by COVID-19 should submit a special request and ask to apply the same tax measures as are applied to companies on the list.
Annual PIT declaration and payment term is postponed
The STI has stated that in view of the COVID-19 situation:
- the deadline for declaring and paying annual personal income tax is postponed to 1 July 2020 for both tax residents and non-tax residents of Lithuania;
- the start of personal income tax return filing would be accounted separately;
- residents will be able to donate a portion of their personal income tax to organizations, political parties and trade unions by 1 July 2020;
- the term for repayment of personal income tax overpayments remains unchanged, so residents who have correctly and timely filed their returns would be refunded by 31 July 2020;
- the STI has published a list of economic activities where anyone carrying them out will also be able to use tax measures similar to those applied to companies on the list of companies that should be deemed to be affected by COVID-19.