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In Lithuanian, in addition to the deductions/credits mentioned above, deductions and business expenses may be claimed as specified below:
- Offset of losses: - A loss may be offset 5 years forward. Losses from securities may be offset 3 years forward, only against profits from securities.
It is not possible to offset a loss backward.
- Consolidated Statements - in Lithuania, a loss in one company of a group may not be set against a profit in another company in the group.
- Financing expenses - interest on credit is allowable for tax. Nevertheless, interest paid to a company owning more than 50% of the paying company is not allowed for the debt above debt to equity ratio of 4:1.
Depreciation of Fixed Assets
- The straight-line method or the "double depreciated balance" method may be used in Lithuania.
- The rates of depreciation in Lithuania:
| Class of Asset |
Depreciation (years) |
| New and renovated buildings |
8 |
| Residential buildings |
20 |
| Machinery and equipment |
5-15 |
| Computer equipment |
3 |
| Computer software |
3 |
| Cars |
4-10 |
| Rights |
3 |
| Goodwill |
15 |
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