News

On May 25, 2006, the Seimas amended the Law on Real Estate Tax. According to the amendment, the real estate tax rate variable from 0.3 to 1 percent (the local governments decide upon the particular real estate tax rate by June 1 of the current tax period) of the real estate tax value is established.

The law, by which The Seimas of the Republic of Lithuania has ratified the Convention on joining of Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the Convention in correction for the avoidance of double taxation of associated companies corporate income, which was signed on December 8, 2004 in Brussels, came into force.

Personal income tax decreased from 33 % to 27 percent from July 1, 2006, and will be decreased to 24 % from January 1, 2008.

The Law implements the provisions of Directive 2000/31/EC on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market.
The Law establishes requirements for provision of commercial information, orders, and concluding contracts using electronic means.
It sets the responsibility of service providers, dispute resolution rules, indicates public institutions responsible for regulating policy for provision of information society services.

Amendments to Lithuanian Labour Code which added paternity leave as a new form of special-purpose leave came into force. The paternity leave is granted for men for the period starting from the day of birth of a child until the child reaches the age of one month. It is also established that the allowance for the above period provided for in the Law on Social Insurance of Sickness and Maternity is paid to the father if the he lives with and is married to the child’s mother.