On January 4, 2022 the European Commission announced that it has approved a EUR 125,000 Lithuanian tax deferral scheme to support businesses affected by the coronavirus pandemic. The scheme was approved under the State aid Temporary Framework.

Under the scheme, the aid will take the form of interest-free deferrals or staggering of payment of excise duties and VAT on imported goods. The public support will be combined with the suspension of tax debt recovery. The aid will be granted under a simplified procedure to businesses affected by the coronavirus pandemic and the restrictive measures put in place to limit the spread of the virus. The aim of the scheme is to enhance the liquidity of the beneficiaries and to help them continue their activities during and after the pandemic.

The European Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework as amended on November 18, 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.

More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.100014 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved..


Copyright – internationaltaxplaza.info


Follow International Tax Plaza on Twitter (@IntTaxPlaza)



Submit to FacebookSubmit to TwitterSubmit to LinkedIn