Discover PwC tax reliefs and State aid application services
The application of tax reliefs and State aid have close connections which are not always clearly visible. As PwC professionals we have many years of experience in the areas of tax reliefs and State aid, therefore we fully understand what opportunities can be gained by the synergy of these two areas.
Considering the potential benefits of the synergy, the PwC tax and PwC Legal law firm's State aid teams now offer clients comprehensive tax reliefs and State aid advice services.
Webinar “Combining financing instruments and corporate tax reliefs: case study” (Lithuanian language)
Identification of tax reliefs and financial incentives opportunities
- Considering the specifics of your company, its economic activities and planned investments, we provide individual proposals for the plan of applying tax reliefs and financial incentives that would be most beneficial to you.
- We evaluate your company's opportunities to take advantage of specific tax reliefs and/or financial incentives.
- We represent your company's interests in communications with the responsible authorities regarding the eligibility of investment projects implemented by your company to use tax reliefs and/or financial incentives.
Application of tax reliefs and financial incentives
- We perform an analysis of your company's already implemented and/or ongoing investment projects and identify expenses that could be eligible for tax reliefs. We assess whether the tax relief, if any, was properly applied.
- We prepare your investment project applications and related documentation required to take advantage of the tax relief and/or financial incentives.
- We represent your company's interests in the application evaluation process, during which we aim to secure the highest possible funding for the implementation of your ideas.
Administration of tax reliefs and financial incentives
- We prepare an implementation plan for the project implemented by your company and advise on any project implementation issues in order to ensure the most effective use of tax reliefs and/or financial incentives.
- We prepare project implementation documentation and ensure that it meets the requirements of financial incentives and other legal acts.
- We represent the interests of your company in communication with the responsible institutions that supervise the implementation of your project.
Consultations on other issues of tax reliefs and financial incentives
- We assess the reasonableness of financial and/or other sanctions applied to your company by the responsible authorities, and present the most effective defense plan.
- We represent your company's interests in disputes with the authorities responsible for the administration of financial incentives and prepare documentation related to disputes.
- We organize trainings and/or workshop sessions for your company and your employees on the relevant topics of tax reliefs and financial incentives.
Our team
Combining many years of experience gained in the fields of State aid and European Union funding, tax reliefs and other areas regulating investment promotion, our experts offer complex services based on the one-stop shop principle for the implementation of your ideas.
Our results
Selected projects data for 2017 - 2023
Types of tax reliefs and financial incentives
- Investment project incentive
- R&D relief
- Patent box relief
- Large-scale investment project incentive
- FEZ benefit
- Filmmaking benefit
- Foreign investment promotion tool
- Other sources of funding
Investment project incentive
What is the type of benefit? Tax relief.
Who is it for? For companies investing in long-term assets.
How does it work? A company investing in long-term assets can reduce its taxable profit by deducting the costs of the acquisition of long-term assets that meet the requirements listed in The Law on Corporate Income Tax.
What is the benefit? Up to 100% reduced taxable profit over 4 tax periods.
R&D relief
What is the type of benefit? Tax relief.
Who is it for? For companies investing in research and development (R&D) activities.
How does it work? A company carrying out R&D projects can reduce taxable profit by incurred R&D costs (except for depreciation or amortization costs of long-term assets).
What is the benefit? Up to or more than 100% reduced taxable profit by deducting 3 times R&D costs for the tax period in which they are incurred.
Patent box relief
What is the type of benefit? Tax relief.
Who is it for? For companies investing in R&D activities and receiving profit from the use, sale or other transfer of ownership of assets created while performing R&D activities.
How does it work? For companies investing in R&D activities and receiving profit from the use, sale or other transfer of ownership of assets created while performing R&D activities.
What is the benefit? Preferential 5% (where the standard is 15%) corporate tax rate for profits obtained from the use, sale or other transfer of ownership of assets created while performing R&D activities.
Large-scale investment project incentive
What is the type of benefit? Tax relief and reduction of the administrative burden.
Who is it for? For companies implementing large-scale investment projects.
How does it work? When implementing a large-scale investment project, the company must invest at least EUR 20 million in long-term assets and create at least 150 new jobs. During the implementation of the project in Vilnius, no less than EUR 30 million must be invested and at least 200 new jobs created.
What is the benefit? The company may not pay corporate tax for up to 20 years, a large-scale investment project is assigned with a project coordinator and is granted with the status of a project of state importance. Also, the processes of territory planning, issuance of construction permits, related infrastructure development, decision-making processes of public administration entities are accelerated, and migration processes are simplified.
FEZ benefit
What is the type of benefit? Tax relief and reduction of the administrative burden.
Who is it for? For companies registered in Free Economic Zones (FEZ).
How does it work? The relief can be used by a service company registered in the FEZ, which invests at least 100 thousand euros in long-term assets and whose annual average number of employees in the current tax year is at least 20. The relief can also be used by a service or manufacturing company registered in the FEZ, investing at least 1 million euros to long-term assets.
What is the benefit? The company may not pay corporate tax for the first 10 years, and pay a 50% reduced corporate tax rate for the next 6 years. Also, the company is exempt from real estate tax and can receive a "discount" for land tax. If needed, companies can take advantage of the services offered by FEZ management companies, which speed up and facilitate company establishment processes.
Filmmaking benefit
What is the type of benefit? Tax relief.
Who is it for? For companies that want to provide funds to a Lithuanian film producer free of charge.
How does it work? Lithuanian companies that want to provide funds to a Lithuanian film producer free of charge are given two options to reduce the profit tax:
1. through the reduction of taxable income (75% amount of funds);
2. through the reduction of the amount of profit tax (full amount of funds).
What is the benefit? The benefit guarantees a profit tax saving equal to 111.25% of funds allocated to the Lithuanian film producer.
Foreign investment promotion tool
What is the type of benefit? Subsidy.
Who is it for? Companies with foreign capital of any size, which operate in the field of services or manufacturing and which intend to establish a new or expand an existing business in Lithuania.
How does it work? When establishing a new or expanding an existing business in Lithuania, a foreign investor must create at least 20 jobs, the average monthly gross wage of which would not be lower than the wage of the municipality where the activity will be carried out. Private investments must be at least EUR 1.5 million.
What is the benefit? The foreign investor is compensated up to 50% of expenses (but not more than EUR 37.5 million) related to wages or acquisition of long-term assets.
Other sources of funding
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