Double Taxation Agreement Austria - Lithuania
The Double Taxation Agreement between Austria and Lithuania was stipulated in 2002 (The Sheet of Federal Code of Laws III 209/2005), singed on April 6th, 2005 and entered into validity on November 17th, 2005.
The Double Taxation Agreement between Austria and Lithuania covers the following taxes:
- Natural person income tax (Austria)
- Legal entity income tax (Austria)
- Land tax (Austria)
- Contributions from agricultural and forest plants (Austria)
- Contributions from value of soil on un-built plots (Austria)
- Lottery tax (Lithuania, pelno mokestis)
- Natural person income tax (Lithuania, pajamu mokestis)
- State-owned enterprise taxes (Lithuania, palukanos zu valstybinio kapitalo naudojima)
- Real estate tax (Lithuania, nekilnojamojo turto mokestis)
The dividends may be taxed in the “earning state“ , however the dividends may be taxed also in that state, in which the disbursing enterprise has its permanent residence. Thus, as to the dividends, the upper 5-per cent limit applies, if the enterprise with right to use disposes of more than minimum 25-per cent shares and of voting right in the paying enterprise and of the 10-per cent upper limit for all other cases. Though the Austrian provisions as to the matters of tax preferences state, that the dividends in Austria are non-taxable, if the Austrian enterprise with right to use owns at least 10 per cent of the company capital stock with the residence abroad and of paying enterprise dividends.
Similarly important is also the concept definition “the enterprise operation”, where it is going about the stable commercial facility, through which the enterprise business is performed in full or partially. If the Austrian enterprise establishes its place of business in Lithuania, the taxes are to be paid in Lithuania, otherwise these fall under the Double Taxation Agreement and the taxes are to be paid in Austria. Besides other definitions as to the place of business formation (place of performance, branch office/affiliated branch, point of sale, place of manufacture /production, workshops, mines, oil and gas occurrence, stone-pit or other logging places of mineral resources)the realization of construction or assembly, or the inspection activity related therewith represents the place of business/establishment only when this realization, assembly or activity exceeds the period of nine months. The place of business is also not formed in case, when the question is in the single/pure deposit, shipping warehouse or exhibition place, or when the operated office is the single purchase office or the information bureau. Further details - see the Double Taxation Agreement.