The corporate income tax rate for banks and credit unions is set to rise to 20 percent, from the current 15 percent, in January.
Corporate income tax for banks will be raised to 20 percent
© DELFI / Andrius Ufartas

The higher rate will apply to a bank’s earnings exceeding 2 million euros.

Banks, like other legal entities in Lithuania, are now taxed at a 15 percent rate.

On Tuesday, the Seimas adopted the controversial draft amendment to the Law on Corporate Income Tax in a vote of 90 to 15 with 21 abstentions.

Gintare Skaiste, a member of the parliament' Committee on Budget and Finance, said the tax hike would not help boost competition in the banking sector, but "may even reduce it".

Liberal MP Simonas Gentvilas said he would turn to the Constitutional Court over the tax.

The amendment was tabled in place of an earlier proposal to impose a tax on bank assets.

Finance Minister Vilius Sapoka has said the corporate income tax hike to 20 percent would generate around 20 million euros in additional budget revenue.

The Lithuanian banking sector posted 334.5 million euros in non-consolidated net profits last year.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Researchers are developing new material for planes and cars that will show damage invisible to a human eye

KTU researchers together with colleagues from Latvia, Denmark, Sweden, Slovakia, Ukraine, Czechia,...

Minister: Rail Baltica's joint management model poses threat to its continuity (1)

The joint management model of the European standard-gauge railway project Rail Baltica is already...

Šapoka: new taxes wouldn't be painful (4)

As Lithuania's public debt is growing due to the coronavirus crisis , the country might need to...

Central bank: we are working with Denmark on Danske Bank

As new information on the transfer of money of dubious origin via Danske Bank 's divisions in the...

Thermo Fisher Scientific: no coronavirus vaccine production in Vilnius

Biotechnology company Thermo Fisher Scientific says its Vilnius branch is not producing coronavirus...

Top news

Šapoka: new taxes wouldn't be painful (4)

As Lithuania's public debt is growing due to the coronavirus crisis , the country might need to...

President and PM tested for coronavirus (1)

Lithuanian President Gitanas Nauseda and Prime Minister Saulius Skvernelis have tested negative for...

Righteous Among the Nations honored in Kaunas for saving Jews

Lithuanian families who hid Jews during the Nazi occupation were honored as Righteous Among the...

Conquering hill forts in Kaunas and around

The ancient artefacts are popular sightseeing spots as they usually reveal stunning panoramas. So, put...

Lara Seligman | D+ nariams

In West Africa, U.S. military struggles for scarce resources as terrorism threat grows

Tensions with Iran almost scuttled a major international training exercise in the Sahel.

|Maža didelių žinių kaina