Lithuania Corporate Income Tax
Detailed corporate income tax rates and rules for Lithuania in 2026.
Lithuania levies corporate income tax at 17% (increased from 15% in 2026). Small companies (annual income under €300,000 and fewer than 10 employees) in their first two years of operation pay 0%. The reduced rate for qualifying small companies increased from 6% to 7% in 2026. Banking and insurance sectors pay an additional solidarity contribution.
Standard Rate
17%
Small Business Rate
7%
Additional Notes
Lithuania offers free economic zones (LEZ) with corporate tax exemptions for the first 10 years and 50% reduction for the next 6 years. R&D incentives include a triple deduction for qualifying R&D expenses. Tax losses can be carried forward indefinitely (limited to 70% of taxable profit). Lithuania implements EU Anti-Tax Avoidance Directives.
How Lithuania Corporate Tax compares
Lithuania’s corporate tax rate of 17% is the 156th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
