Taxation of international executives
Are there special residency considerations for short-term assignments?
There are no special residency considerations for short-term assignments. The same rules as described previously for determining residency are applicable.
Are there special payroll considerations for short-term assignments?
No special considerations apply for short-term assignments.
What income will be taxed during short-term assignments?
Subject to tax treaty relief, all of the income relating to work performed in Lithuania will be taxable.
If the assignee is not resident in Lithuania, income relating to non-Lithuanian work will not be taxed.
Also, if an individual is recognized as a Lithuanian tax resident due to the number of days spent in Lithuania, only Lithuanian sourced income is taxed and declared in Lithuania.
Are there any additional considerations that should be considered before initiating a short-term assignment in your country?
Short-term business trips may not be taxable in Lithuania, provided the employee does not work for the benefit of the host company (case by case analysis would be required).
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