Europe

Lithuania revised the commentary to Corporate Profit Tax Law article 55 on August 10, 2026, addressing the calculation of tax losses carried forward and the treatment of restructuring expenses. The change provides clearer guidance for corporate restructuring and merger & acquisition transactions. Key Takeaways Loss Carry-Forward Rules: Clarified maximum carry-forward period of five years and

Lithuania amended the commentary to Corporate Profit Tax Law article 40(3) on August 10, 2026, refining the rules on advance pricing agreements and the treatment of related-party services. The revision aims to improve predictability for multinational taxpayers undergoing tax audits. Key Takeaways Advance Pricing Agreement Scope: Expanded coverage for services and intangibles, with mandatory disclosure

On 10 August 2026, the VMI issued an updated consolidated commentary on Article 4(2) and Article 39 of the Corporate Income Tax (CIT) Law. The revisions aim to ensure smooth implementation of the CIT Law, addressing the definition of permanent establishment (Article 4(2)) and the rules for controlled foreign company (CFC) taxation (Article 39). The

On 10 August 2026, the VMI amended and supplemented the consolidated commentary on multiple subparagraphs of Article 2 of the Corporate Income Tax Law (paragraphs 41, 42, 7, 29, 38, 41). These definitions are foundational for determining taxable income, deductible expenses, and the scope of participation exemption. The update reflects 2025 legislative amendments and judicial

On 10 August 2026, the VMI updated the consolidated commentary on Article 55 of the Corporate Income Tax Law, which governs the tax treatment of liquidation, reorganization, and merger transactions. The amendment incorporates the 2025 changes to the tax-neutral merger regime and clarifies the carryover of tax attributes such as tax losses and unused investment

On 10 August 2026, the VMI revised the consolidated commentary on Article 40(3) of the Corporate Income Tax Law, which regulates the thin capitalization and interest deduction limitation rules (aligned with ATAD Article 4). The update provides detailed calculation methodologies for the EBITDA-based interest capacity and the treatment of excess borrowing costs. Key Takeaways EBITDA