Workations and business trips: nuances of taxation

Verslo žinios, leading Lithuanian business internet portal, has prepared a publication on the basic principles of taxation of workations.

During the pandemic, the widespread and still popular workation days and group employee trips to foreign countries must be properly taxed and formalized, otherwise they can be significantly more expensive for the employer and attract the attention of the State Tax Inspectorate (VMI).

• When can a secondment of employees become a secondment.
• Why daily allowances sometimes turn into wages, from which all taxes are paid.
• Why are there no daily allowances for workers?
• When employees on workations become tax residents of another country.

The most common mistakes and risky situations are named by Ernestas Švoba, Senior Account Manager at “Noewe” Finance & Accounting company “Nordgain”, and State Tax Inspectorate (VMI).

Enjoy the read. Article in Lithunian at Versložinios.lt