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Lithuania/ 5.1 General legislation  

5.1.5 Tax laws

The Law on Charity and Support (2000, amended in 2004) addresses charities and their support to the development of programmes in science, culture and education, as well as programmes for the protection and restoration of cultural monuments. It has legalised the establishment of non-profit funding organisations. However, according to this law, VAT exemptions are applied only to government (state, municipalities) institutions.

The Law on Population Income Tax (2002) set a 15% royalty tax and gave the residents of Lithuanian the right to transfer up to 2% of income-tax to legal recipients of support.

During the last four years, the state VAT policy was changed due to the economic crisis, and all exemptions for cultural services and goods were abolished or limited. Since September 2009, a standard VAT rate of 21% was applied. However, according to the Law on Value Added Tax (1993; amended in 2010), the VAT rate of 9% is applied to books and non-periodical editions of information (textbooks, dictionaries, lexicons, maps, schemes, children books, etc.). These changes have increased publishing, printing and circulation costs. New tax rates were introduced in the copyright sector in 2010 as well. A total tax rate of 38.7% is applied to authors who are freelancers and don't have social insurance.

Chapter published: 28-11-2014

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