2009-12-01 - Corporation tax for small companies in Lithuania reduced to 5%

25.11.2009 - Unexpectedly, the Seimas of Lithuania approved of the amendments proposed by MP Dainius Budrys, according to which income tax for small companies shall be reduced to 5%. The Government proposed to reduce income tax from 13 to 7.5%.

The amendment proposed by Budrys was approved of by just one vote overwhelmingly: 55 MPs voted for, 18 voted against, 36 abstained from voting.

While Gintaras Steponavicius and several other members of the Seimas argued that their vote was not taken into account, Chairman of the sitting Virginija Baltraitiene did not allow to unvote, reports ELTA/LETA.

Baltraitiene addressed Algimantas Salamakinas, Chairman of the Seimas Commission on Ethics and Procedures, who explained that in such case the person who chairs the sitting, can act at his own discretion.

The income tax will be reduced to 5% to those companies that employ up to 10 people, and their fiscal period income does not exceed 500, 000 litas (145,089 euros).
It is proposed to reduce income tax from 20 to 15% for bigger companies.