Personal Income Tax in Lithuania (PIT)
PIT rate: 20% and 27%.
20% rate applies to all labour derived income not exceeding 120 Average Monthly Wage (AMV) per year (approximately 8800 EUR per month).
If the revenue exceeds threshold above, then 27% PIT rate will be applied when resident submits an annual PIT declaration (7% overhead payable by the resident personally).
Income tax in Lithuania (IT)
Standard income Tax rate: 15%.
Preferential 5% income tax rate applicable when the number of employees does not exceed 10 and the total annual income 300.000 EUR, including associated companies (other exceptions applicable).
Preferential 0% income tax rate applicable to newly established companies for first year when shareholders are natural persons (other exceptions applicable).
Value Added Tax in Lithuania (VAT)
Standard VAT rate - 21%.
Social Tax in Lithuania (ST)
Social taxes to employee account for 19.5% (Compulsory Health Insurance rate - 6.98%).
State Social Insurance (SSI) rate - 12.52% (no longer applicable to wage overhead above 120 AMV)
Employer' contributions - 1.47%.
NOTE: ST ceilings came into effect in excess of 120 AMV per year (approximately 8800 EUR gross per month).
ST floors applicable to salaries lower than Monthly Minimal Wage – gross 555 EUR.
Dividends (income from distributed profits) and income from individual economic activity: 15% PIT.
Monthly Minimal Wage in Lithuania (MMW)
MMW rate increases to 555 Eur and the Hourly Minimal Wage (HMW) up to 3.39 Eur
Average Monthly Wage in Lithuania (AMV)
AMV applies to calculation of the SSI base: 1Q 2019 - 1136.2 EUR.
To find out more about taxation in Lithuania, Latvia and Estonia please contact our lawyers at firstname.lastname@example.org.