Tax law amendment package
A big amendment package for taxation law is provided for readings (VAT, personal income tax, tax on shares, real estate, profits, gaming and pollution). Investor’s Forum provides comments for the proposed amendments.
– Pay excise duty only once, e.g. before the 20th or 25th of the next month of the fiscal period, thus unifying the deadline for these taxes with VAT payment schedule.
– Change the advanced VAT payment deadline from the 5th to the 20th, leaving the right to submit the declaration before the 17th in case overpayments are expected and to only pay the actual VAT amount, instead of an advance payment.
– Considering the previous proposals, move the deadline for excise duty declaration to the 17th or the 22nd of the next month of the fiscal period.
– To keep the current income tax declaration and payment pocedures or:
– Abolish the yearly income tax declaration for A class income, leaving only moghtly declaration that would be submitted before the 22nd on the next month of the fiscal period and payed before the 25th.
– To uniform the state social insurance contribution and personal income tax declaration procedures, i.e. declare and pay taxes only on the amounts paid out.
– Transfer administration of social security contributions to State Ta Inspectorate.
– To make advanced real estate tax payments four times a year and make both taxes payable before the 15th of the last month of the fiscal quarter.
Lietuvos Respublikos finansų ministerijai
Smart tax administration system (i.MAS)
State tax inspectorate aims to improve tax administration and deploy modern solutions. The chosen direction seems to be correct and if the system will function as presented it will reduse costs and burden for both the tax administrator and tax payer
– Strengthen data protection on both the IT and staff level (screening, access to data, punishment)
State tax inspectorate under the Ministry of Finance of the Republic of Lithuania
New social model
The new social model is in preparation that includes amendments on labour regulations, taxes and other laws
– Periodically index retirement pensions
– Abandon the proposal to calculate social security contributions on bonuses (melon)
– Unify employer’s and employee’s part of social security contributions into one
– Start reducing the employer’s part of social security contribution from 2016, not 2017
– In the next five to ten years unify social security contribution across different groups of taxpayers