From 1 May 2025, Lithuania introduces a revision to the daily interest rate applicable to tax loans under its Tax Administration Law (TAL). This adjustment reflects a broader policy approach to alleviate financial burdens on taxpayers while preserving enforcement mechanisms for late payments. The amendment affects the rate applied to tax loans, while the late payment interest remains unchanged.
Key Updates in Interest and Late Payment Fees
As per the Order issued by the Minister of Finance of the Republic of Lithuania, the daily interest rate for tax loans will be reduced from 0.008% to 0.007%. This reduction applies to the interest charged for the period a tax loan is used, offering modest financial relief to businesses and individuals managing deferred tax obligations.
However, the late payment interest rate remains fixed at 0.027% per day. This is the amount payable for each overdue day under the TAL and continues to act as a deterrent for delayed tax settlements.
These updates are part of Lithuania's fiscal strategy to maintain balance between taxpayer support and compliance enforcement.
Eurofast's Take
Eurofast can assist businesses and individuals in Lithuania and the wider Baltic region in navigating these changes. Understanding the nuanced impact of daily rate reductions on tax planning, loan structuring, and penalty avoidance is essential for compliance and cost efficiency.
Our team can provide tailored advice on:
- Tax loan strategies under the revised interest rate
- Calculating potential late payment fees
- Filing and compliance management in line with TAL updates
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
