Lithuania's State Tax Inspectorate (STI) has issued guidance on the application of the increase in the tax rate on dividends from 15% to 16% with effect from 1 January 2025. Key points of the guidance are summarized as follows:
Taxation of dividends paid between Lithuanian entities
Dividends received by a Lithuanian entity from another Lithuanian entity are taxed at a rate of 16%. The responsibility for calculating, withholding, and paying this tax falls on the dividend-paying entity. The…