Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LT-2020-12/329 – Updated – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 16 March 2020 – 31 October 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Deferral of payments or liabilities
|Author||Rasa Mieziene, Inga Blaziene (Lithuanian Centre for Social Sciences)|
|Measure added||07 April 2020 (updated 18 October 2021)|
After the Government of the Republic of Lithuania declared an emergency situation and quarantine, many companies and self-employed persons had to discontinue or partially restrict their activities. In such a situation, a number of businesses do not have the opportunity not only to pay salaries to employees, but are also unable to pay social insurance contributions and other taxes. On 17 March 2020, the Law No. XIII-2812 amending Article 88 of Law No. IX-2112 on Tax Administration of the Republic of Lithuania was adopted to increase the ability of taxpayers with temporary financial difficulties to stabilize their financial situation through deferral or arrangement of tax payment arrears.
Taking into account the restrictions/prohibitions on activities set up during quarantine, the State Tax Inspectorate has announced economic activities in which taxpayers may have suffered a direct negative impact as a result of the reason above and has published a list of specific taxpayers to whom the following assistance measures will automatically apply: non-recovery of declared taxes (other than customs duties), exemption from the payment of default interest and no interest accruing on concluded tax loan agreements. These taxpayers are subject to analogous measures to facilitate the payment of state social insurance contributions. This principle shall apply to taxes that are due after 16 March 2020 (i.e. after the declaration of quarantine) until the state of emergency is lifted.
According to the data provided by the STI, as of 12 June 2020, tax aids have been used by some 21,000 entrepreneurs adversely affected by COVID-19; tax deferrals amount to approx. €392 million (with €245 million VAT predominating).
According to STI’s data for April 2021, a total of 73,000 companies were included in the STI’s list of companies affected by the pandemic; as of 23 April, legal entities and individuals together had €673.9 million in arrears due to COVID-19.
||Applies to all businesses||Does not apply to citizens|
Social partners jointly
Company / Companies
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
Social partners consulted only ad hoc, the tripartite meeting was not held.
Eurofound (2020), Tax deferral for companies and self-employed, measure LT-2020-12/329 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-12_329.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.