Taxes

I am an employee

 

Which income will be taxed in Lithuania?

  • Living in Lithuania? You must pay tax on your worldwide income here.
    (criterion: domiciled or with your centre of interests here, or staying for at least 183 consecutive days over 12 months)
  • Not living in Lithuania? You only pay tax on income earned here.
  • Income from foreign countries? Make sure you never pay tax twice on the same income.

 

 

How much will you pay?

Income tax rates for 2016 (2017 return)

Income is taxed at a flat rate of 15%.

When calculating your taxable income, take into account any allowances or deductions for expenditure you are entitled to.

 

When and how do you pay?

Your employer deducts income tax and social contributions from your salary.

 

How to appeal/complain?

If you disagree with your tax assessment, you can appeal to the tax office.

For details about exactly where and how, please see your tax assessment letter.

 

 

I am self-employed

 

Which income will be taxed in Lithuania?

  • Living in Lithuania? You must pay tax on your worldwide income here.
    (criterion: domiciled or with your centre of interests there, or staying for at least 183 consecutive days over 12 months)
  • Not living in Lithuania? You only pay tax on income earned here.
  • Income from foreign countries? Make sure you never pay tax twice on the same income.

Avoiding double taxation in Lithuania

 

How much will you pay?

Income tax rates for 2016 (2017 return)

  • 5% — on profits from independent business activities
  • 15% — on profits from certain professions (attorneys, notaries public, bailiffs, accountants, auditors, financial, tax or legal consultants, architects, designers, journalists, etc.)
  • A fixed amount of income tax established by municipal councils for acquiring a certain business certificate.

Deductions

You may be entitled either to deductions for certain types of expenditure or lump-sum deductions amounting to 30% of income.

 

When and how do you pay?

You must self-assess the income tax due on your profits from registered activities, filing a tax return by 1 May of the calendar year following the tax year — either in writing or online.

 

How to appeal/complain?

If you disagree with your tax assessment, you can appeal to the tax office.

For details about exactly where and how, please see your tax assessment letter.

General information about the tax system in Lithuania you will find here.

National authority responsible for taxes – Lithuanian Tax Inspectorate