Amendments to the law simplifying the accounting of providers and recipients of sponsorship are under preparation
Today, the Government approved the draft Law on Charity and Sponsorship prepared by the Ministry of Finance, which envisages the abolition of the requirement for businesses providing or receiving sponsorship (charity) to submit monthly reports to the State Tax Inspectorate (STI) on the sponsorship provided or received.
“We are waiving excessive requirements and reducing the administrative burden on businesses. We want them to be able to devote more time to their core business, rather than filling out reports”, Minister of Finance Kristupas Vaitiekūnas states.
Currently, both providers and recipients of sponsorship are required to submit an annual report to the State Tax Inspectorate, and monthly reports must also be submitted if the amount of sponsorship provided to a single recipient of sponsorship or received from a single provider exceeds EUR 15,000. The State Tax Inspectorate receives all the information necessary for the receipt and use of sponsorship, as well as for the control of the provision of sponsorship, from annual reports, therefore the submission of monthly reports to the State Tax Inspectorate is considered redundant.
After the amendments are adopted, businesses would only be required to submit annual reports, and monthly reports would be abolished. This means that they would no longer have to fill in and submit data to the State Tax Inspectorate every month – the reporting process itself would become simpler and less resource-intensive. According to the State Tax Inspectorate, once the amendments come into force, administrative costs for businesses would be reduced by almost EUR 50,000 per year.
Last updated: 30-10-2025
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