Tax privileges

Possibilities to use tax incentives

Profit tax reliefs for investments in R&D are regulated by the Law on Corporate Income Tax.

The following incentives are applied to companies investing into R&D:

  • triple deduction - expenses incurred by companies while carrying out R & D can be deducted from taxable income thrice in the tax period in which the expenses were incurred.
  • super-accelerated depreciation – a shortened period of depreciation has been set for fixed assets.  The terms of depreciation and amortisation applied could be reduced instead of 3-8 years to 2 years.
  • Relief for investment project – relief can be applied through an investment project for new products, services, processes, technology development and deployment. The taxable profits cannot be reduced by more than 50 percent of the investment cost of the project. If the costs are higher than 50 percent - the amount of excess costs can be transferred for the subsequent four consecutive tax periods.

For more information:

  • (available in Lithuanian)
  • State Tax Inspectorate Under the Ministry of Finance of the Republic of Lithuania, Tax Information Centre phone number 1882 (telephone number for calls from abroad – +370 5 2553190).
Last updated: 19-12-2021