Navigation path

Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Rate and base changes 2014/01/01
Results 1 - 1 of 1.

Generic Tax Name Personal income tax
Tax name in the national language Gyventojų pajamų mokestis
Tax name in English Personal income tax
Member State LT-Lithuania
Tax in force since 1991/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law of the Republic of Lithuania on Personal income tax No X-1007 was adopted on 2002/07/02. The Law entered into force as of 2003/01/01 and replaced Provisional law on income tax of natural persons No I-641 which was adopted on 1990/10/05 and entered into force since 1991/01/01.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments

The Law establishes a minimum amount of the fixed amount of income tax on income derived from certain business activity exercised under a business certificate while certain amounts are established by municipal councils.

 
Beneficiary





Comments

27.2 % (in 2015) of personal income tax from national budget is allocated to the state budget and 72.8 % (in 2015) is allocated to the local budgets (these proportions for 2015 are established in the Law on the approval of financial indicators of the state budget and municipal budgets of the Republic of Lithuania for 2015 and are revised annually).

 
Geographical Scope

All territory of the Republic of Lithuania.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments


Comments

Income tax is paid by an individual (resident or non-resident of Lithuania) who has received income.

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

The object of income tax is the income of individuals.

Residents are subject to tax on their worldwide income. The non-residents are taxed:

  1. on income derived from activity carried out through the fixed base in Lithuania.
  2. on the below listed items of Lithuanian sourced income derived not through the fixed base:
    • interest income;
    • income from distributed profit and annual bonuses to Board and Supervisory Board members;
    • remuneration in respect of employment and similar contracts;
    • income from sporting activities;
    • income from artistic activities;
    • income from sale or another form of transfer of movable property which is or must be registered in Lithuania, such as cars, guns, certain equipment;
    • income from sale, rent or another form of transfer of immovable property situated in Lithuania;
    • royalties
    • compensations for violation of copyright or related rights. 

Basis of assessment:

  1. The taxable income of residents is calculated by deducting from all income earned during the taxable period:
    • tax-exempt income;
    • income derived from activity performed with a business certificate;
    • deductible expenses related to an income derived from individual activity;
    • an acquisition price certain types of property, which has been sold or alienated within the tax year, if the property is not related to individual activity; the expenses, connected with such property's sale or alienation shall also be deducted;
    • basic and additional tax-exempt amounts (as from 1 January 2009 basic tax-exempt amount is applied only to employment income and is calculable taking into account a level of the income of the individual. Maximum basic tax-exempt amount is EUR 1,992 per year);
    • deductible expenses enlisted in the Law.
  2. The taxable income of non-residents derived through a fixed base is calculated as follows: from all income derived the above-mentioned way non-taxable income from individual activity performed through the fixed base and (or) deductible expenses, connected with income derived from individual activity performed through this fixed base are deducted.
 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Allowances
The basic yearly allowance for an individual amounts to: 3,480.00  EUR/National currency
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child 720.00  EUR/National currency
Additional allowance for 2nd child 720.00  EUR/National currency
Additional allowance for 3rd child 720.00  EUR/National currency
Additional allowance for additional child 720.00  EUR/National currency
Additional allowance for old age dependents
Comments

Non-taxable amount for income (NPD) applies only for revenues related with labour corresponding relations. Annual NPD (MNPD ) can not be greater than 1,992 euro, if a resident 's annual income (GMP) does not exceed 3,480 euro. If the GMP exceeds 3,480 euro, MNPD can not be greater than the amount calculated using the following formula:
MNPD = 1,992 - 0.26 x (GMP - 3,480).
Otherwise, the NPD applied for taxable income in the following order:
1) if person's income does not exceed 290 euro per month, the monthly NPD is 166 euro;
2) if persons income exceeds 290 euro per month, the monthly NPD is calculated using the following formula:
monthly NPD = 290 - 0.26 x (monthly income in relation of employment or corresponding income - 290 euro).
3) Third case when calculated by the formula NPD is negative, it is assumed that it is equal to 0.


Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

Under the provisions of the Law some items of income are considered as non-taxable income. They include following:

  • different types of deductible expenses corresponding particular conditions;
  • pensions and annuity payments received from the Lithuanian state budget, municipal and State Social Insurance Fund budgets as well as from foreign state funds;
  • pension annuities received from a life insurance undertaking;
  • income received as charity;
  • income received by way of inheritance, which is subject to tax under the legal acts of the Republic of Lithuania regulating inheritance tax;
  • income received by way of gift from spouses, children, parents, brothers, sisters and grandparents and the total amount (value) of income received by way of gift from other individuals, which shall not exceed EUR 2,500 through the tax period;
  • income from agricultural activities carried on in small farms; income received by individuals from the sale of wild berries, mushrooms, nuts and herbs gathered by themselves;
  • amounts to compensate for material damage, amounts awarded by court to compensate for non-pecuniary damage, and reimbursement of expenses related to social, medical and professional rehabilitation under the provisions of the Law of the Republic of Lithuania on Safety and Health at Work;
  • maintenance payments awarded by court or received under an agreement;
  • scholarships and benefits to students and pupils corresponding particular conditions;
  • lottery winnings provided that they are paid out by entities of European economic area countries which are subject to the lottery turnover tax;
  • some prizes and others.

Certain categories of residents of Lithuania are entitled to tax - exempt amount determined individually:

  • tax-exempt amount for persons whose capacity for work has been rated at 0-25% оr persons in the old age retirement group rated as having high-level special needs or high-level disabled persons is EUR 235 per month;
  • tax-exempt amount for persons whose capacity for work has been rated at 30-55% or persons in the old age retirement group rated as having medium or low level special needs or medium or low level disabled persons is EUR 175 per month.

The additional tax-exempt amount is applied to residents of Lithuania (parents or adoptive parents) raising children under 18 years of age or older if that child is enrolled in the secondary educational. The additional tax-exempt amount is EUR 60 per month for the every child.

Moreover, the following expenses incurred by a resident of Lithuania during the tax period may be deducted from his income:

  • life insurance contributions paid for his own benefit or for the benefit of his spouse or minor children (adopted and foster children);
  • pension contributions paid for his own benefit or for benefit of his spouse or minor children (adopted and foster children);
  • interest paid on one credit taken out before 1 January, 2009 for the building or acquisition of one housing to banking and other credit institutions;
  • payments for studies or professional training (where the first higher education and/or first qualification are obtained upon graduation, and also for first doctoral studies and art post-graduate studies) made by studying residents of Lithuania. Where a studying resident of Lithuania is not an income taxpayer or has no possibility to exercise his right to deduct payments for studies, such expenses may be deducted by his parents (adoptive parents) or guardians as well as his spouse from their income.

The total amount of aforementioned deductible expenses can not exceed 25% of the taxable income received during the tax period.

Losses from individual activity can be carried forward without restriction but only if income from that activity are recognized on an accrual basis.

 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  3,480.00  EUR/Natcur
To   EUR/Natcur
Rate: 15.00 %
Comments

As from 1 January 2010 the personal income tax of 5 % is applied to income from individual activity, except income from liberal professions which are subject to 15 % tax rate.

Income from activities exercised under a business certificate is subject to a fixed amount of income tax determined by municipal councils.

As from 1 January 2009 the personal income tax rate is 15%, except dividends which were subject to 20% income tax until 31 Dec 2013. Since 1 Jan 2014 it is 15% as well.


Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 15.00 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable
Comments


Comments
 
Tax due date

According to the tax payment procedure, all items of personal income (including tax-exempt income) are divided into two classes: A and B.

A group income is:

  • income derived from Lithuanian entity, foreign entity through its permanent establishment or from non-residents through their fixed base (including sporting and artistic income, income from individual activities if received from employer and income of non-residents not related to individual activity derived from sale or another form of transfer of immovable property situated in Lithuania or of movable property if such property shall be registered according to the Lithuanian laws and the place of such property registration is or shall be Lithuania), with some exceptions;
  • remuneration in respect of employment and similar contracts, income from sports or artists activities, interest and royalties received from individuals who are Lithuanian residents and income from sale of base metal, if received from individuals who perform respective individual activity.

B group income includes all items of income other than those attributed to A group.

Income tax from A group income must be withheld and paid to the budget by the payer of income, while B group income must be assessed and tax must be paid by individuals themselves or their authorized persons.

A resident of Lithuania, Lithuanian entity, permanent establishment or non-resident of Lithuania who carries on individual activities through a fixed base, acting in the capacity of a tax withholder, must pay the income tax, withheld from the income paid out before the 15th day of the respective month and attributed to A class income, to the budget before the 15th day of the same month, while the income tax withheld from the income paid out after the 15th day of the respective month must be paid to the budget before the last day of that month.

A resident ofLithuaniawho:

  • has received income attributed to A class income and wants to avail his right to deduct yearly tax-exempt amounts and/or deductible expenses,
  • has received income attributed to both A and B classes,
  • is a farmer or is a farmers partner,
  • has conducted his individual activities with a business certificate,

must fill in tax return and pay personal income tax by himself or through authorised person before 1 May of the calendar year following that tax period in which income was received.

The same rule is applied to a non-resident ofLithuaniawho during the tax period has received income from individual activities through the fixed base.

A non-resident of Lithuania who during the tax period received other income attributed to B class income must pay income tax to the budget not later than within 25 days of receipt of that income.

 
Tax collector

The State Tax Inspectorate under the Ministry of Finance.

 
Special features

Tax on income from specified individual activities may be paid by purchasing a business certificate for a fixed amount of income tax determined by municipal council.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 4,004.45 LTL 12.01
2011 3,772.57 LTL 12.07
2010 3,469.95 LTL 12.38
2009 3,788.05 LTL 14.06
2008 7,313.30 LTL 22.37
2007 6,528.00 LTL 22.48
2006 5,624.50 LTL 23.36
2005 4,953.40 LTL 23.59
2004 4,260.00 LTL 23.36
2003 3,730.50 LTL 22.38
2002 3,567.70 LTL 23.47
2001 3,525.40 LTL 24.84
2000 3,523.40 LTL 26.36
1999 3,614.50 LTL 28.43
1998 3,434.40 LTL 26.37
1997 2,892.00 LTL 24.67
1996 2,075.30 LTL 21.36
1995 1,680.70 LTL 21.65

Comments