Lithuania's State Tax Inspectorate has published updated commentary (guidelines) on the application of the thin capitalization rules. The standard limit for thin capitalization in Lithuania is a 4:1 ratio between controlled borrowed capital (debt) and fixed capital (equity). If a company's debt to a controlling party exceeds four times its fixed capital on the last day of the tax period, the interest on the excess portion of the loan is considered a non-deductible expense for corporate incom…