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Last checked: 24/01/2019

Income taxes abroad – Lithuania

I'm an employee

Which income will be taxed in Lithuania?

  • Lithuanian resident. You must pay tax on your worldwide income there.
    (criterion: domiciled or with your centre of interests there, or staying for at least 183 consecutive days over 12 months).
  • Income from foreign countries. Make sure you never pay tax twice on the same income.
  • Foreign resident. You only pay tax on income earned in Lithuania.

How much will you pay?

Income tax rates for 2016 (2017 return)

Income is taxed at a flat rate of 15%.

In 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, see your tax assessment letter.

Links

I'm self-employed

Which income will be taxed in Lithuania?

  • Lithuanian resident. You must pay tax on your worldwide income there.
    (criterion: domiciled or with your centre of interests there, or staying for at least 183 consecutive days over 12 months).
  • Income from foreign countries. Make sure you never pay tax twice on the same income.

Avoiding double taxation in Lithuania

  • Foreign resident. You only pay tax on income earned there.

Income tax rates for 2018 (2019 return) and for 2019 (2020 return)

  • Income from self-employment is taxable at a rate of 15%. The deduction of income tax credit is available. A 5% tax rate applies where annual taxable income do not exceed 20 000 Eur and the rate increases progressively to a max of 15% where annual taxable income is at least 35 000 Eur.           
  • 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.

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, see your tax assessment letter.

Links

Lithuanian Finance Ministry

Lithuanian Tax Inspectorate

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