History of Lithuania 1920, captured Vilnius the following day, and established a short-lived Republic of Central Lithuania in eastern Lithuania on October 12, 1920. The "Republic" was a part of Piłsudski's federalist scheme, which never materialized due to opposition from both Polish and Lithuanian nationalists. For 19 years, Kaunas was the temporary capital of Lithuania while the Vilnius region remained under Polish administration. The League of Nations attempted to mediate the dispute, and Paul Hymans proposed plans for a Polish–Lithuanian union, but negotiations broke down as neither side could agree to a compromise. Central Lithuania held a general election in 1922 that was
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