Lithuania Income Tax Rate for 2017, 2016, 2015, 2014, 2013
Lithuania Personal Income Tax Rate from
January 1 2016
upto 14,000 Euros
16,000 to 36,000
Above 36000 Euros
The law is to enter into force Jan. 1, 2016, after getting
Seimas approval will be applicable for the calculation of
personal income tax for 2016 and subsequent tax periods.
Personal Income tax Lithuania
Income tax is levied on individuals who are resident
in Lithuania for tax purposes or on individuals who
are not resident but receiving a Lithuanian sourced
The residence of an individual is judged by the
individual circumstances in each case. The criteria
is laid down in the laws and principally outlines
the requirements as:
Domiciled in Lithuania
Personal, social or economic interests in
Spending a specified period of time in Lithuania
(residents are recognised foreign individuals
staying in Lithuania with or without breaks for no
less than 183 days in a calendar year, or staying in
Lithuania with or without breaks for no less than
280 or more days during two consecutive calendar
years, where the stay in Lithuania during one of
these years lasted at least 90 days).
Permanent residents pay income tax on their
Lithuania Income Tax Rates 2014 and Deductions
Lithuania Income Tax Rate for Individual Tax Payers
As of 2014 individuals in Lithuania pay a flat tax
of 15% on their income, 5% for income from
individual activities. The tax rate for dividend
income is 15%.
An individual in Lithuania is liable for tax on his
income as an employee and on income as a
self-employed person. In the case of an individual
who answers the test of a "permanent resident" of
Lithuania, tax will be calculated on his income
earned in Lithuania and overseas.
A foreign resident pays tax only on his income in
To be considered a Lithuanian resident, an
individual must meet the requirement of residence in
Lithuania for at least 183 consecutive days in a 12
month period. Occasionally, an individual will be
considered a Lithuanian resident even if he is
resident in Lithuania for less than 183 days if
he/she owns a home in Lithuania that is his/her
An employer is obligated to deduct, immediately,
each month, the amount of tax and national insurance
due from a salaried worker.
Corporate Tax Rates in Lithuania
The 2014 standard rate of corporate tax in Lithuania
There is a participation exemption for dividend
income received by companies having a shareholding
of 10% or more.
Income from a dividend paid by one EEA company to
another in Lithuania is exempt from tax, subject to
the terms of the law.
Capital Gains Tax in Lithuania
In companies in Lithuania, capital gains are added
to the regular income
Individuals pay 15% tax on capital gains.
Tax Deductions at Source in Lithuania
As regards salaried employees in Lithuania, the
employer is obligated to deduct tax at source from
the salaried employee and to make additional
contributions to social security.
The social security percentage paid by the employer
is 30.98%-32.6% of the salary, and the salaried
employee's contribution is 9%, including health tax.
In Lithuania, tax must be deducted at source from
the following payments on the following basis:
Dividend - The usual deduction is 15%.
Interest - The standard rate of tax deducted at
source is 10%. Zero for EEA companies .
Royalties on patents - The standard rate of tax
deducted is 10%.
Comment: Deduction at source for foreign residents
is subject to the Double Taxation Prevention Treaty.
The tax period is a calendar year. Certain kinds of income
are taxed at the moment of payment.
Tax returns and payments
Depending on the particular type of income, the tax is paid
and tax returns presented monthly or annually. All income,
according to the tax payment procedure, is divided into two
classes: ?A? and ?B?.
Income of A class comprises income from which the income tax is
calculated and paid to the budget by persons paying out income,
for example income incidental to employment relations or
relations in their essence corresponding to employment
relations, income from sports or performing activities,
royalties, interest, income from artistic activities, income
from property rent, etc.
Income of B class comprises income from which the tax is
calculated, paid to the budget and declared by an individual,
for example, winnings from gaming and lotteries, any income
received from individuals of foreign states and from entities of
foreign states (not through a permanent establishment) residing
abroad, income from a resident of Lithuania (except for income
incidental to employment relations, interest, royalties, etc.),
income from the sale or other transfer into ownership of
immovable property (e.g. a building, land) and of movable
property where such type of property is subject to legal
registration (e.g. a car), income from individual activities
(except for income from individual activities from the sale or
other transfer into ownership of non-felled forest, round wood,
base metal scrap), etc.
A resident of Lithuania who during the
tax period received income attributed in accordance with the tax
payment procedure to both A and B classes must, after the end of
the tax period and before 1 May of the calendar year following
that tax period, either himself or through a person authorised
by him submit an annual income tax return to the tax
administrator for the previous tax period and declare therein
all the income received during the previous tax period and the
income tax calculated in respect of such income.
Income tax by an individual must be paid after the end of
calendar year, before 1 May of the following calendar year.