The Lithuanian parliament adopted legislation on 22 March 2016 to implement amendments made to the EU Parent-Subsidiary Directive into Lithuania's Law on Corporate Income Tax. The amendments include that the participation exemption provided for in the Directive will not be granted if:
- A profit distribution made by a subsidiary to its parent company is deductible in the Member State of the subsidiary (hybrid mismatch rule); or
- An arrangement or a series of arrangements are put in place with t…