Research & Development

The Government emphasizes extreme importance of research and development (R&D) for sustainable economic growth and competitiveness. 10 % or LTL 2.3 billion of EU structural support for 2007-2013 period will be allocated to R&D.

The Government designed a variety of instruments to increase general level of both private and public investments into R&D. Tax incentives for business investments into R&D is one of them. Global practice acknowledges that tax incentives make a positive impact on this activity, in particular, at the beginning attempting to achieve an essential breakthrough of business investment into R&D. Currently, Lithuania has joined the group of countries that create exceptional conditions for investment into R&D.

Provisions regarding corporate income tax incentives for investment into R&D are addressed to companies engaged in creation of new materials and technologies generating high value-added.