Insights of experts

Three of the threats uppermost in the minds of business leaders in the mid-market were inflation, cyber attack, and economic slowdown.

On 20 of March 2023 Ministry of Finance of Lithuania revealed proposals on tax reform, to be submitted to Parliament early May, to enter into force from the year 2024 (if adopted). Below we summarize key aspects of the tax reform, relevant for the businesses.

“Lithuania's e-Residence program is a digital solution that makes it easy for non-Lithuanians to start and run a business from anywhere in the world. With an e-Residence card, you can access a variety of online services and sign legal documents electronically, which greatly simplifies the process of starting a business in Lithuania.“

This publication is designed to give preparers of IFRS financial statements a high-level awareness of recent changes to International Financial Reporting Standards. It covers both new Standards and Interpretations that have been issued and amendments made to existing ones.

World Economic Forum (WEF) recently issued the Global Risks Report 2023. It identifies several high impact / high probability risks related to economic downturn, warfare, societal polarization and digital privacy.

Many economies around the world are preparing for a rather unusual recession. One that is characterised by conditions usually associated with a boom, such as low levels of unemployment (instead of increasing levels) and central banks raising interest rates (instead of cutting them). These unusual characteristics combined with what many commentators expect to be a shallow and short recession, could mean the ‘usual’ response to a recession may not be the right course of action for businesses.

Webinar material: Key tax changes in Baltics 2023: slides and video recording

Grant Thornton Baltic tax specialists prepared an overview of the tax changes that have taken place in Lithuania from 2023

Tax laws changes affecting payroll as of January 1, 2023 in Lithuania

New research from Grant Thornton reveals how mid-market businesses globally are failing to take adequate steps to protect their business against the threat of inflation. The research coincides with the release of Grant Thornton’s “Essential action plan for managing in inflationary times” and highlights that around three-quarters of businesses globally have not taken the actions we are recommending.

The most relevant changes to the Labor Code of the Republic of Lithuania are for the attention of company managers, managing accounting persons and human resources managers. Some of them have already entered into force since 2022 July 1. We invite you to check what is relevant for both the employer and the employee and for general payroll accounting.

In the competition to hire top talent, many tech and telecom firms are looking abroad. The industry’s employees are already more likely to be location-independent. In fact, the recent Grant Thornton State of Work survey showed that 72% are remote, and more than half rarely go into an office.

All legal entities established in Lithuania must receive, update and store accurate information about their Ultimate Beneficial owners (UBO). This information must be provided to the Legal entities register (UBO subsystem JANGIS) no later than 10 days from the data change.

Whenever financing needs to be granted between associated companies, either belonging to a same group or associated by other criteria, tax authorities can challenge the interest rate as being too high, or too low, and accordingly calculate additional corporate income tax. Transfer pricing, free loans, transactions between associated companies, tax advisory.

In the beginning of the year, several tax changes were introduced in Estonia, Latvia and Lithuania.

Key Lithuanian tax changes as of 2022. Changes in corporate taxation, payroll taxes, personal Income Tax, Tax for Environmental Pollution, Future tax reforms.