Republic of Central Lithuania authority over the area. Instead, it continued to treat the so-called Vilnius Region as part of its own territory and the city itself as its constitutional capital, with Kaunas being only a temporary seat of government. The dispute over the Vilnius region resulted in much tensions in the Polish-Lithuanian relations in the interwar period. Some historians have argued that if Poland had not prevailed in the Polish-Soviet War, Lithuania would have been invaded by the Soviets, and would never have experienced two decades of independence. Under this scenario, despite the Soviet-Lithuanian Treaty of 1920, Lithuania was very close to being
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