Jelle R. Bakker
Jelle R. Bakker
Partner International Tax at Bentacera, Kreston Global

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Kreston tax expert and regional tax director in the Kreston Global Tax Group, Jelle Bakker has accomplished many contributions in the area of international taxation over the past 35 years, including 10 years as Senior Tax Counsel with Global Network Bank.

Lithuania: introduction of windfall tax

February 22, 2023

Lithuania has introduced a windfall tax on surplus profits for the crude oil, natural gas, coal, and oil refining sectors. Lithuania has published Law XIV-1680 in the Official Gazette, which entered into force on 1 January 2023 and provides for the implementation of Regulation (EU) 2022/1854. This includes a solidarity contribution on surplus profits in the crude oil, natural gas, coal, and oil refining sectors that is equal to a rate of 33% on taxable profits in the tax year starting in 2023 to the extent exceeding 120% of the average taxable profits in the preceding four years, 2018 to 2021. The solidarity contribution applies to companies that generate at least 75% of their turnover during a taxation period in the fields of extraction, mining, petroleum refining, or production of coke oven products. The Law also provides for the introduction of a windfall tax on the revenue of electricity producers exceeding prescribed market rate caps that are to be set by the State Energy Regulatory Council. In general, the tax is imposed at a rate of 90% on the excess revenue, with certain exceptions including for smaller plants with an output of up to 1 megawatt.

If you would like to talk to one of our experts about the windfall tax in Lithuania, please get in touch.