Foreign LLC parts count as shares for participation exemption

The State Tax Inspectorate has advanced its profit-tax commentary (Pelno mokesčio komentaras) to the edition of 4 November 2026VMI, issued under VMI prie FM letter of 2026-11-04 No (18.10-31-1 Mr) RTD-144. The update folds in the statutory amendment of 16 October 2025, įstatymas Nr. XV-488: from the 2027 tax period, the concept of an "akcija" in the participation exemption (PMĮ 12 straipsnio 15 punktas) and in the loss-carry rule (PMĮ 30 straipsnio 2 dalis) also covers a capital part ("dalis") in a foreign limited-liability unit that is registered or otherwise organised in an EEA state or in a state with an applicable double-taxation treaty, is a profit-tax or equivalent-tax payer, and whose authorised capital is formed of partsVMI.

The exemption's standing conditions are unchanged: the transferring unit must have held over 10 percent of the voting sharesVMI uninterrupted for at least 2 years — 3 years for reorganisations and transfers under Article 41(2)VMI — the disposal must go to another unit or a natural personVMI, and the relief does not apply where the unit transfers the shares back to their issuer or where assets are relocatedVMI; holding periods are disregarded for transfers required by legislationVMI. The commentary illustrates the extension with a Ukrainian TOV: TOV parts entitle the holder to take part in managing the company, to information on its business, to distributed profit as dividends, to pre-empt other members' parts and to a share of a liquidated company's assets, and Ukrainian TOVs pay the Ukrainian profit tax (Податок на прибуток підприємств). Gains on the sale of TOV parts are therefore assessed as gains on the disposal of sharesVMI and fall under PMĮ 12(15)VMI.

The documentary file is widened accordingly: comment point 16 now requires the foreign-unit evidence to also cover a transaction with an analogous limited-liability company whose authorised capital is formed of partsVMI (ar analogiško tipo ribotos civilinės atsakomybės bendrovę, kurioje įstatinis kapitalas formuojamas iš dalių) — alongside the continuing proof of the holding period and percentage, the foreign unit's taxpayer status, and the foreign tax administrator's certified confirmation of that status. On the loss side, PMĮ 30(2) carries the same extensionVMI — securities-transfer losses carried into the next tax period may be covered only by securities-transfer profitsVMI, and "akcija" there now likewise includes qualifying foreign limited-liability partsVMI.

Legal basis: PMĮ 12 straipsnio 15 punktas and 30 straipsnio 2 dalis as supplemented by 2025 m. spalio 16 d. įstatymas Nr. XV-488VMI (effective from 2027-01-01)VMI, explained by VMI prie FM 2026-11-04 raštas Nr. (18.10-31-1 Mr) RTD-144 in the 2026-11-04 edition of the Pelno mokesčio komentaras.