Temporary capital of Lithuania during the invasion of Poland, to Lithuania according to the Soviet–Lithuanian Mutual Assistance Treaty. Since then Vilnius has been the capital of the Lithuanian SSR and then independent Lithuania. Lithuania refused to have diplomatic relations between Poland and Lithuania until the ultimatum of 1938. Railroad traffic, telegraph lines or even mail could not cross the Polish–Lithuanian border. Lithuania continued to declare Vilnius as its capital in all official documents, including the constitution. Since the city was controlled by Poland, all Lithuanian authorities were transferred to the city of Kaunas, which became the seat of the government. To reconcile reality with
Taxation in Lithuania in the national budget (including municipal budgets) in 2013. All of these taxes are collected in the state budget, although a part of the personal income taxes collected from individuals are allocated to the municipality where that individual resides. The rules for this allocation are approved annually. Taxes on property are allocated fully to municipal budgets. Lithuania redistributes a relatively small part of its GDP through taxation. Revenue from taxes and social contributions in Lithuania stood at 27.5% of GDP in 2012, the lowest in Europe. Lithuania also exhibits some of the lowest tax rates on corporate profits, capital and