Companies EPAM and Wargaming have stayed below the Lithuanian tax payment threshold for an extended period of two years or more.

Companies EPAM and Wargaming have stayed below the Lithuanian tax payment threshold for an extended period of two years or more.

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EPAM Systems Slides Down, Pays Less in Taxes and Cuts Staff

EPAM Systems and Wargaming, two big names in Lithuania's IT scene, have seen some changes lately.

EPAM Systems took the fourth spot in the IT sector and dropped €3.7 million in taxes - a 14% decrease compared to the previous year. This marks the company's lowest tax payment figure in the past two and a half years. The shake-up doesn't stop there - EPAM has let go of over 20 employees, leaving around 1200 people working across its Vilnius and Kaunas branches. The Vilnius team is now under 1000 strong for the first time ever.

Meanwhile, Wargaming ranked fifth and paid €2.94 million in taxes, marking another two and a half-year low. Compared to last year, Wargaming saw a 2% decrease in tax payments. The company shed over 40 employees in the quarter, leaving it with 791 staff in total.

In the Lithuanian taxpayer rankings, EPAM slipped 20 spots to 95th position (formerly 75th). Wargaming, on the other hand, dropped out of the top 100 last year and now stands at 127th place.

Other Lithuanian IT companies with Belarusian roots have the following figures:

• Gurtam - paid €1.17 million, slightly more than the previous year.
• MA (formerly Melsoft) - decreased payments from €1.2 to €1 million.
• Flo - paid €0.6 million.
• Belka Games - paid €0.1 million.

Why the Change?

Companies like EPAM Systems and Wargaming may reduce tax payments and staff sizes due to a variety of factors. Here are some possibilities:

1. Economic Challenges: Both companies could be reacting to economic difficulties or a downturn. This could be due to recession concerns, reduced demand for their services, or changes in the worldwide market.
2. Regulatory Changes: Changes in tax laws or regulations might influence a company's decision to adjust its operations. If there are more favorable tax environments elsewhere, companies might reduce their presence in Lithuania.
3. Strategic Shifts: Businesses often reassess their operations to align with strategic objectives. This could include focusing on more lucrative markets or shifting resources to areas with higher growth potential.
4. Operational Efficiency: Companies may reduce staff to boost operational efficiency or adapt to new technologies and automation. This can also help manage costs and maintain profitability.
5. Local Market Conditions: Local market conditions, such as competition, labor costs, or availability of skilled workers, could affect these decisions.
6. Global Events: Global events like the COVID-19 pandemic or geopolitical tensions (e.g., the conflict in Ukraine) might have impacted these companies' operations and decision-making processes.

For a more detailed explanation, we'd need more specific context and information about any recent events or policies that might be affecting these companies in Lithuania.

1. EPAM Systems, despite being one of Lithuania's IT sector's big names, dropped to the fourth spot and paid €3.7 million in taxes, marking a 14% decrease compared to the previous year, and let go of over 20 employees.
2. Wargaming, another IT heavyweight in Lithuania, ranked fifth and paid €2.94 million in taxes, a 2% decrease from the previous year, and reduced its staff by more than 40 employees.
3. In the Lithuanian taxpayer rankings, EPAM Systems slipping 20 spots to 95th position and Wargaming dropping out of the top 100 signifies a significant change in their financial standing.
4. The reduction in tax payments and staff sizes by companies like EPAM Systems and Wargaming could be due to economic challenges, regulatory changes, strategic shifts, operational efficiency, local market conditions, or global events.

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