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2015 IV quarter | Leinonen Lithuania

Dear reader,

Leinonen Lithuania regularly informs about important practical issues in the fields of accounting, taxation and legislation and helps to follow the main changes in this area. If You would like to receive more detailed information how these changes or other laws affect or could affect Your business, we would like to meet You and discuss financial aspects of your business.

We are ready to share our knowledge and experience with business people, financial specialists and other persons who could be interested in it.

2016 news

Tax news

From 1 January 2016 the minimum monthly wage increases to EUR 350, there are some changes related to non-taxable income amounts.
One due date rule is established for tax payments and declarations – by the 15th day of the respective month.
Since 1 April 2016 a new provision of the Code of Administrative Offences of Lithuania comes into the force which specifies penalties for failure to follow the transfer pricing documentation procedures.

Provision of additional information to the State Tax Inspectorate

Since 1 January 2016 the companies will be obliged to declare some non-taxable income - daily allowances paid to employees, prizes not exceeding EUR 200, funds received from shareholders (natural persons), balances of petty cash and other information.

Smart Tax Administration System (I.MAS)

The State Tax Inspectorate develops a Smart Tax Administration System i.MAS which main aim is to combat the shadow economy, to ease the administrative burden for taxpayers, to boost tax collection and effectiveness of tax administrator’s operations.

As the result, the majority of taxpayers will be forced to update their accounting information systems in order to comply with additional reporting requirements

Has a taxable person the right to deduct the input VAT paid on non-current assets which are intended for use by public?

On 22 October, 2015 the European Union Court of Justice (EUCJ) ruled in case C 126/14 (Sveda). EUCJ was asked to explain whether a taxable person has the right to deduct the input VAT paid in producing or acquiring non-current asset - recreational object, which is directly intended for use by members of the public free of charge.

The exchange of ‘bitcoin’ into traditional currency – VAT treatment

On 22 October, 2015 the European Union Court of Justice (EUCJ) made its judgement in case C 266/14 (David Hedqvist). EUCJ was asked to explain whether transactions in the form of what has been described as the exchange of virtual currency for traditional currency and vice versa, which is effected for consideration added by the supplier when the exchange rates are determined, constitute the supply of a service effected for consideration and are VAT tax exempt.

Every client is special to us and we try to help everyone in every way we can.

Having almost 20 years of experience in Lithuania we create and assist in managing accounting and tax policies for our clients who are business start-ups, companies with great history or even those listed on International stock exchange.

Are you interested to find out how we can help you? Please contact:

MAŽENA BIRBALIENĖ

Head of advisory unit

tel. +370 656 51728

e-mail: mazena.birbaliene@leinonen.lt

Leinonen Group is a Finnish-owned private accounting and advisory company, which was established already in 1989. Leinonen Group helps companies enter and succeed in challenging business environments by offering reliable accounting, payroll management, advisory, administration, and audit services. The deep local expertise and personal service approach, combined with wide international presence, is our strength. Our 13 offices can be found in the main cities of 11 countries – Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Bulgaria, Hungary, Russia, and Ukraine.