Virtual currency is recognized as a short-term asset.

Lithuania became one of the first countries in the world to respond to the impact of cryptocurrencies on financial markets and to prepare an official explanation of the taxation of operations related to the circulation of cryptocurrencies. The most commonly mentioned cryptocurrencies are bitcoin, ethereum, ripple, litecoin, NEM, Monero and others. From a tax point of view, a cryptocurrency will always be considered an instrument that is analogous in its properties to these cryptocurrencies. In certain cases, cryptocurrency may also be recognized as a different instrument for tax purposes, such as a certain type of token. From the point of view of the Corporate Tax and Personal Income Tax laws, according to the content and economic meaning of the transactions carried out, cryptocurrency is recognized as a short-term asset that can be used as a means of payment for goods and services or held for sale, and for VAT purposes, cryptocurrency is considered the same currency as euros, dollars, etc. . Virtual currency is recognized as a short-term asset, but when a company sells or exchanges this currency, it is considered to receive taxable income.