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Reduction of Taxable Profits due to an Investment Project

Our tax specialists have significant experience with application of reduction of taxable profits due to an investment project valid from 2009. Thus, we can offer a wide range of services and accurate advice for our clients.

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Reduction of Taxable Profits Due to an Investment Project provided in Article 46 (1) of the Law on Corporate Income Tax of the Republic of Lithuania aims at business expansion of companies by investing in new non-current assets used in the activities of a company. Companies investing in assets which meet the requirements provided in the Law on Corporate Income Tax can reduce their taxable profits by the amount of the actual costs incurred. Notably, the taxable profits may be reduced by not more than 50% of the taxable profit for the taxable period, and the costs exceeding this amount may be carried forward to reduce the amounts of taxable profits calculated for the four subsequent tax periods, respectively reducing the amount of the costs carried forward.

Deloitte tax specialists have significant experience with application of reduction of taxable profits due to an investment project valid from 2009. Accordingly, services provided to clients include monitoring of projects being implemented by companies in order to evaluate whether they meet the requirements for application of incentive provided in the Law on Corporate Income Tax, evaluation of guidelines applied by a company for calculation of cost of asset units acquired for incentive purposes, evaluation of documents reasoning acquisition/creation of asset units acquired for the purpose of incentive due to an investment project, preparation and verification of documents necessary for the tax administrator and other services related to the incentive according to the client’s requests.