Lithuania Updates Guidance on the Transfer of Tax Losses

Lithuania's State Tax Inspectorate (VMI) has updated its guidance/commentary on Article 56-1(1) and (9) of the Corporate Income Tax Law, which concerns the transfer of tax losses between companies within the same group from 2026. Key points include:

• Clarification that a parent entity must directly or indirectly hold at least 2/3 (66.67%) of the shares (or rights to distributed profit) of the subsidiary involved in the loss transfer, which applies both on the last day of the tax period for w…