State audit: Bureaucratic barriers hinder R&D tax relief for Lithuanian businesses

Lithuania's State Audit Office has identified significant shortcomings in the system designed to encourage business innovation through tax incentives. An audit revealed that a crucial tax relief program for research and development (R&D) is failing to reach a substantial number of innovative companies.

The audit highlighted that bureaucratic barriers, established by the state itself, are preventing many businesses from utilizing this important incentive. While the government promotes innovation through direct funding and tax breaks, the system's complexity and administrative hurdles are proving to be a major obstacle.

This situation undermines the effectiveness of the state's efforts to foster a more innovative business environment. The findings suggest a disconnect between the intention of the policy and its practical implementation, leaving many potentially innovative businesses without the support they need to grow and develop.