STI has now published a commentary to explain the topic in detail – i.e. to bring out what is considered as ingenuine arrangements and the circumstances which may be considered to evaluate the genuinity of the dividend payment.
For more information, please read the full article on our Lithuanian webpage: https://leinonen.lt/news/news-2017/not-genuine-arrangements-and-risks-that-dividends-may-be-taxed
Ingenuine dividend payments may be taxed in Lithuania Dec 06
In March 2016, Lithuanian State Tax Inspectorate (STI) renewed the Corporate Income Tax Law stating that dividends paid according to ingenuine arrangements may be taxed. Ingenuine arrangements are such dividend payments which intention is to receive taxing benefits.