• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/30/2013

Lithuania - Real estate tax exemption relating to agricultural activities 

August 30: Lithuanian real estate tax law has been amended to provide an exemption from real estate tax for an entity’s real property when the entity is involved in agricultural activities (effective January 2014).

Under the provision, entities with agricultural activities generating over 50% of the entity’s total income are exempt from the real estate tax—whether or not the subject land is actually used to generate agriculturally related income.

The amendment specifies that the real estate tax exemption is available when the land is used wholly or in part to generate:

  • Income from agricultural activities and / or
  • Income of cooperative companies (cooperatives) from the sale of agricultural products acquired from their members

Other provisions affecting individuals, VAT

Other recent tax law changes in Lithuania affect the following:

  • Individual taxpayers
  • Value added tax (VAT)
  • Disclosure of payments to government-related entities conducting land depth exploration, development and extraction and/or with respect to the oil and gas and virgin forestry industries

Read an August 2013 report [PDF 136 KB] prepared by the KPMG member firm in Lithuania: Tax, legal and accounting newsletter (August 2013)

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