| Abstract [eng] |
The development of corporate income tax in Lithuania is an integral part of the country's economic transformation and integration into the European Union and the international global economy. After Lithuania's independence in 1990, a new and independent tax system, influenced by corporate and other taxes, was established step by step. Although the first corporate tax laws were still established by the Soviet Union, they were soon reformed and amended. New legislation on corporate tax was constantly being developed or amended. Over time, the Republic of Lithuania began to actively integrate into international treaties and legislation adopted by the European Union. This has led to the harmonisation of the tax system at international level. Many of the reforms adopted were related to the desire to attract foreign investment by granting incentives and applying lower rates than usual. In Lithuania, tax reform involved not only changing rates but also reviewing and adjusting the tax base and other tax elements. The main objective of both the European Union and Lithuania has been to ensure the functioning of double taxation treaties and to achieve a transparent economy. Although there has been more and more discussion about the prospects of the corporate tax base in recent years, and some political and economic experts argue that abolishing corporate tax would reduce the administrative burden, it would leave the Lithuanian tax system with practically only indirect taxes, which often do not bring any particular economic benefits. This leads to the conclusion that corporate tax is a compulsory and integral element of the tax system, which ensures the fair distribution of taxes in society and the generation of the necessary revenue to finance public services. |
