Banks in Lithuania currently pay a higher corporate tax rate than other businesses – 21%, up from 20% last year.
The current year is the last under the existing solidarity tax legislation. The levy was introduced by the previous government after the European Central Bank’s interest rate hikes led to windfall profits enjoyed by commercial banks. The 60% tax applied to the net interest income that was above the average of the four previous years by more than 50%.
The proceeds were used for military infrastructure.
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[https://www.lrt.lt/en/news-in-english/19/2543180/lithuanian-banks-post-eur1-billion-profit-sparking-calls-to-extend-windfall-tax?srsltid=AfmBOorXZnyn7v8FJbktFhdtJ1JVU-ASXeTfShG9EZyk_OhaOp-y3iEY](https://www.lrt.lt/en/news-in-english/19/2543180/lithuanian-banks-post-eur1-billion-profit-sparking-calls-to-extend-windfall-tax?srsltid=AfmBOorXZnyn7v8FJbktFhdtJ1JVU-ASXeTfShG9EZyk_OhaOp-y3iEY)
Banks in Lithuania currently pay a higher corporate tax rate than other businesses – 21%, up from 20% last year.
The current year is the last under the existing solidarity tax legislation. The levy was introduced by the previous government after the European Central Bank’s interest rate hikes led to windfall profits enjoyed by commercial banks. The 60% tax applied to the net interest income that was above the average of the four previous years by more than 50%.
The proceeds were used for military infrastructure.