Ukrainian fops may not pay taxes in Lithuania

Lithuania has published an explanation regarding the taxation of Ukrainian entrepreneurs who moved to the country in connection with the attack of the Russian Federation on February 24.

The main thing

Ukrainians are not required to register their individual business activities in Lithuania, pay taxes in this country, and file a declaration if::

registered as individual entrepreneurs in Ukraine and paying taxes there; arrived in Lithuania "due to martial law in Ukraine";continue to work under contracts that were concluded with clients in Ukraine even before they arrived in Lithuania. At the same time, the entrepreneur will lose these rights if he enters into "any new contracts in Lithuania." Details

The publication AIN, referring to The Specialists of the legal and audit company Crowe, clarifies that in its conclusion Lithuania does not refer to any additional conditions, such as the location of the center of vital interests, the length of stay in Lithuania (in particular, up to 183 calendar days or longer), etc. According to Crowe Representatives, this position is quite liberal.

Recall that it is a stay in Europe for a period of more than 183 days that can create legal uncertainty in the status of tax residency of Ukrainian refugees and may lead to the need to pay taxes in the country of temporary stay.

BRDO and the IT Association of Ukraine have appealed to the Government of Ukraine and the Ministries of Finance of Bulgaria, Germany, the Czech Republic, Hungary, Romania and Slovakia not to change the tax residency of refugee entrepreneurs who find themselves in these countries.

In August, the Ministry of Finance adopted an order that allows entrepreneurs to obtain a certificate confirming their residency in Ukraine online. This will avoid obtaining residence abroad and, accordingly, solve the problem of double taxation for those who left because of the war, according to the state regulatory service.

Previously, only Poland allowed Ukrainians who work remotely not to pay taxes.