Lithuanian tax reform 2019

As of 1st January 2019, Lithuania has introduced a number of changes in tax legislation. Employer’s social security contributions will be transferred to employee, so employers will be required to change employment agreements and gross-up the current employees’ salaries by multiplying them by 1.289 and withhold higher payroll taxes at higher rates. As a result, net income should not decrease and employer’s costs should remain unchanged. Also, there are some important changes in the field of corporate income tax, including introducing of new thin cap and CFC rules.

For further information please refer here (in Lithuanian only).