40% of Lithuanian talent is concentrated in science and technology with 50% of researchers below the age of 45. Lithuania has a pool of 18,000 R&D researchers and scientists in various fields. Lithuanians are authors of a cheaper, but no less effective, version of an existing medicine for treating cancer Tevagrastim® and of a 3 times quicker way to cut genes using enzymes than the best previously known methods. Also, Lithuanian laser companies were among the first in the world to transfer fundamental research into manufacture.
Incentives for new technologies:
Scientific research and experimental development (R&D)costsdeducted 3 times from income for the tax period during whichtheywere incurred, if the performed R&D works are related to theusual orintended activities of the entity that generate or willgenerate income oreconomic benefit.
Super-accelerated depreciation - acquisition price of fixed assets used in the R&D activities can be written-off within two years.
Investments into substantial technological improvements will entitle the companies to reduce the taxable profit down by 50%.