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 without limit forward, up to 70% of the annual taxable income. Losses from securities may be offset five 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.
There is no consolidated filing of tax returns.
- 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 in Lithuanian- The straight-line method or the "double depreciated balance" method may be used in Lithuanian.
- The rates of depreciation in Lithuania:
|Class of Asset||Depreciation (years)|
|New and renovated buildings||8|
|Machinery and equipment||5-15|