On 12 June 2026 the Lithuanian tax authority released an informational notice concerning the amendment of Article 7 of the Personal Income Tax Law, which pertains to the calculation of taxable income from employment and other sources. The amendment, part of a broader legislative package adopted by the Seimas on 4 June 2026 (Article 20, paragraph 7), introduces new provisions that adjust the tax base, modify the rates applicable to specific income categories, and refine the method for aggregating income from multiple employers. It also defines additional deductions that may be claimed, such as expenses related to education, healthcare, and social contributions, while imposing stricter documentation requirements to substantiate these claims. The notice outlines transitional rules that dictate how income earned prior to the amendment will be treated, ensuring that taxpayers are not unduly penalised for prior financial years. It further instructs tax administrators to update their calculation software and to provide guidance to taxpayers through official communications. The overall objective of the amendment is to modernise the tax system, improve revenue collection, and align Lithuanian tax legislation with emerging fiscal policies and EU standards.