#Walless Tax Cookies: The right tax time to buy a new car is now!
2024 10 31
Lithuania is setting new limits on tax deductions for vehicle depreciation, based on CO2 emissions. Starting from 2025, companies will be entitled to deduct acquisition costs limited to:
- For zero-emission cars: you can deduct up to €75 000 of the acquisition cost, BUT
- For cars with CO2 emissions over 200 g/km: the maximum deduction is €10 000
These restrictions also apply to leased vehicles, BUT there are no limits for short-term rentals or rentals through platforms and portals. Additionally, there are limited VAT deductions for vehicles in most cases. So, even if you sell a used company car at a loss in the future, you might still face corporate income tax!
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