Tax allowance
- Name of the instrument - Local language
- Mokestinės lengvatos besimokantiems darbuotojams
- Name of the instrument - English translation
- Tax allowance
- Scheme ID
- 132
- Country
- Lithuania
- Reporting year
- 2015
- Type of instrument
- Tax incentive for individuals
- Type of entry
- Single instrument
- Short description
Adults can deduct costs related to their education and training (to acquire the first vocational qualification and (or) the first higher education degree, as well as first doctoral studies) from the base of their individual income tax. The State co-funding (in the form of foregone tax revenues) equals to eligible costs multiplied by the marginal tax rate (between 5% and 15%). The maximum amount that can be deducted equals to 25 % of the taxable income.
- Short description of the related instruments
nap
- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
Law on personal income tax; art 21, section 4
2002m. July 2 d. Nr. IX-1007 (Amendment of 2007)- Objective(s) and target(s)
To enhance the investment of the citizens in the formal education leading to the acquisition of the higher education degrees and VET qualifications.
- Operation/management
State Tax Inspectorate under the Ministry of Finances.
- Eligible group(s)
Employees of companies and organisations
- Group(s) with preferential treatment
None
- Education and training eligible
The first vocational qualification and (or) the first higher education degree, as well as first doctoral studies.
- Source of financing and collection mechanism
State (loss of tax revenue)
individual- Financing formula and allocation mechanisms
The total amount of deducted costs must not exceed 25% of all taxable revenues (not including the costs that are eligible for excluding from taxation).
- Eligible costs
Fees and other costs related to education and training (such as study loan repayments, excluding interest).
- Frequency of the use
Each year
- Volumes of funding
na
- Beneficiaries/take up
na
- Organisation responsible for monitoring/evaluation
State Tax Inspectorate (STI) under Ministry of Finance, responsible for administration of corporate income tax.
- Most relevant webpage - in English
na
- Most relevant webpage - local language
na
- Sources
The State Tax Inspectorate at the Ministry of Finances, http://www.vmi.lt
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Frequency of the use
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Most relevant webpage - in English
- Most relevant webpage - local language
- Sources