The rate moved from 16% to 17% and the startup 0% period was extended at the same time. Two changes that pull in opposite directions, and that most online guides still report incorrectly.
- 2026 corporate tax increase
- Extended 0% startup rate
- What changed with Lithuania's corporate tax rate in 2026?
Lithuania's standard corporate income tax rate rose from 16% to 17% from 1 January 2026, with the reduced rate for qualifying small companies (fewer than 10 employees, revenue under €300,000) increasing from 6% to 7%. The 0% rate for newly registered small companies was extended from one to two years in the same reform, and the employee-count condition for this startup rate was removed, broadening eligibility. The UAB, Lithuania's standard private limited company, requires €2,500 in minimum share capital with at least 25% paid up before registration.
What a company pays in Lithuania. Every figure below is published on the Lithuania country page.
| Lithuania | |
|---|---|
| Corporate tax rate | 17% standard (2026, up from 16%) · 7% for qualifying small companies · 0% for new small companies' first 2 tax periods |
| VAT standard rate | 21% |
| VAT reduced rates | 9% and 5% |
| Accounting standard | Lithuanian Business Accounting Standards, or IFRS for listed/large entities |
| Currency | EUR |
What makes it complex in Lithuania
- 2026 corporate tax increase — — standard rate to 17% (from 16%), small-company rate to 7% (from 6%), effective 1 January 2026.
- Extended 0% startup rate — — new small companies now qualify for two tax periods at 0%, up from one, with the employee-count eligibility condition removed.
What changed with Lithuania's corporate tax rate in 2026?
The standard rate rose from 16% to 17%, and the reduced rate for qualifying small companies rose from 6% to 7%. The 0% rate for newly registered small companies was extended from one to two tax periods, and the employee-count eligibility condition for that rate was removed, broadening access for startups.
How does the 300% R&D deduction work?
For every €1 a company spends on qualifying research and development activity, €3 can be deducted from taxable income — among the most generous R&D incentives in the EU. This is available to any Lithuanian UAB regardless of whether founders are Lithuanian residents, making it particularly valuable for software and technology companies.
2026 corporate tax increase is one of the points HTLC Network handles for clients operating in Lithuania, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Lithuania the scope is: Statutory accounts, VAT returns, and corporate tax filings aligned with Lithuanian standards, including R&D triple-deduction documentation where applicable.
See Accounting & Tax Compliance in Lithuania for the full scope, or the Lithuania country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.