Lithuania to Implement Amendments to the EU Parent-Subsidiary Directive

The Lithuanian Ministry of Finance has issued proposed legislation to implement amendments made to the EU Parent-Subsidiary Directive into domestic law. The amendments include that the participation exemption provided for in the Directive will not be granted if:

• A profit distribution made by a subsidiary to its parent company is deductible in the Member State of the subsidiary (hybrid mismatch); or
• An arrangement or a series of arrangements are put in place with the main purpose or one of th…