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Who is liable to pay Lithuanian Income Tax?

Individuals resident in Lithuania are subject to tax on their worldwide income while non-residents are liable to income tax on Lithuanian-sourced income.

Who is a Tax Resident of Lithuania?

Tax residency in Lithuania is determined by permanent residence status, place of personal, social and economic interest as well as individuals who have stayed in Lithuania for 183 days in a tax year or have stayed in Lithuania with or without breaks for 280 or more days in 2 consecutive tax periods with one stay in the country during each of these years at least 90 days. Lithuanians citizens remunerated by State institutions are also considered residents.

What is the tax year end?

31st December

When are tax returns due?

Returns must be filed no later than 2nd May of the following taxation year.

Is there a personal tax allowance?

Taxes are charged on net income after relevant deductions with no allowances.

What are the tax rates?

Lithuania has a progressive tax rate of between 20 – 32%. A 20% rate applies to income amounts not exceeding 104,277.6 euros (EUR) and a rate of 32% is charged for amounts in excess.

What are the social security rates?

Individual’s working in Lithuania are required to contribute about 19.5 percent of their income towards Social security.

Can I be self-employed, or must I become an employee to work in Lithuania?

You can be self-employed in Lithuania. Contact us for more details.