Page 34 - CEE Tax Guide 2024

Lithuania The general rate is 21%, the reduced rates are 9% (e.g. Other income (e.g. interest, royalties, capital gains,
books, central heating, public transportation, tourist
rental income) is taxable at a PIT rate of 15% in case such
accommodation, cultural activities) and 5% (e.g. medicine, income does not exceed EUR 228,324 per calendar year
journals, newspapers, and technical aids for the disabled). in 2024. PIT at the rate of 20% is applied to amounts that
The options/limits based on the EU Directive are presented exceed this.
within the VAT legislation.
UAB Mazars Lithuania Tax Other types of indirect tax in Lithuania include excise duty, Income in general is recognized at the moment of its
Konstitucijos av. 18B, Vilnius, the environmental protection charge, and the data storage actual receipt.
Lithuania device tax. The gross salaries of employees are also subject
Phone: +370 615 44 719 to social contributions at a rate of 19.5%, which the
www.mazars.lt Personal income tax / Social security system employer is required to deduct. The employer also
has to pay 1.77% in social contributions on top of the
Employment-related income, board member fees, royalties employee’s gross salary. An additional 3% contribution
received from an employer, and income under a civil may be paid by individuals who have decided
agreement received by a manager of a small partnership to accumulate an additional pension (the employer
who is a member of the small partnership are taxed at the is required to deduct this tax).
Corporate taxes and other direct taxes company to a foreign company. Lithuania has a wide rate of 20% in cases where income does not exceed EUR
international treaty network with more than 50 double 114,162 per calendar year in 2024. PIT at a rate of 32% Lithuania is subject to EU regulations laying down social
The general rate for corporate income tax is 15% tax treaties. is applied to excess amounts. security principles for persons migrating between
in Lithuania. An incentive corporate income tax rate Income from profit distribution is taxable at a flat PIT EU Member States.
of 5% is applied to small companies with an annual Companies are also subject to two types of taxes rate of 15%.
turnover of up to EUR 300,000 and with no more than on capital:
10 employees. Small companies can apply a 0% corporate • Immovable property tax: tax on property deemed
income tax rate for their first financial year.
to be immovable by law and located in Lithuania
In Lithuania, the ordinary losses incurred may be carried (buildings and constructions, unfinished constructions
forward to the subsequent taxable periods for an unlimited excepted). The annual tax rate varies from 0.5% to 3%
time, as long as the entity continues the activities that of the taxable value of immovable property. Tax rates are
generated the losses. The amount of losses carried over set by municipalities according to the territory where
to the subsequent taxable periods is limited to 70% the immovable property is located. The tax period
of taxable profit for the corresponding taxable period. is a calendar year.
The 70% limit does not apply to small companies. Capital • Land tax: tax on land owned in Lithuania, to be paid
losses associated with the transfer of derivative financial by both resident and non-resident entities and
instruments and securities may only be carried forward for individuals. The tax rate varies from 0.01% to 4% Wage related taxes in Lithuania Minimum wage Average wage
5 years and can only be covered from future capital gains. of the taxable value of the land. Tax rates are set in private sector
by municipalities and depend on the location of the
Under certain conditions there is no withholding tax land. The tax period is a calendar year. in EUR in EUR
on dividends, interest, or royalty paid by a Lithuanian 924 1,903
VAT and other indirect taxes Total wage cost 940 101.77% 1,936 101.77%
Transfer pricing in Lithuania VAT options in Social contribution tax 16 1.77% 34 1.77%

Arm's length principle ü Since 2004 Lithuania Applicable / limits Gross salary 924 100.00% 1,903 100.00%
Documentation liability ü Since 2004 Personal income tax* 35 20.00% 329 20.00%
Distance selling EUR 10,000/year; the OSS system
APA ü Since 2012 is applicable. Employees' social contributions 180 19.50% 371 19.50%
Country-by-Country Since 2016 Net salary 708 76.67% 1,203 63.21%
liability ü Call-off stock ü
* Non-taxable allowance of EUR 747 (on minimum wage) and EUR 257.5 (on average wage)
Master file-local file VAT group registration No
(OECD BEPS 13) ü Since 2019 Cash accounting – yearly
applicable amount in EUR (approx.) No, it is an optional regime for
agricultural producers only.
Penalty Import VAT deferment
EUR 1,820 – 5,590 ü
lack of documentation ü (EUR 3,770 – 6,000 for Taking over property as a transfer
recurrences) of contribution to a legal entity;
taking over a material improvement
20% – 100% Local reverse charge of a building; supply of certain types
on tax underpayment + late of scrap metal; supply of construction
tax shortage ü payment interest; fines can services; supply of mobile phones,
be doubled for recurrences. tablets, and laptops (applicable until
December 31, 2026).
Option for taxation
Related parties > 25% Direct or indirect control.
letting of real estate ü Jūratė Zarankiené
Safe harbors ü Low value-added services: supply of used real estate ü Managing Partner
5% mark-up.
Mobile: +370 658 10 343
Level of attention paid by Tax VAT registration Local taxable person – EUR 45,000 E-mail: jurate.zarankiene@mazars.lt
Authority 9/10 threshold /12 months; Foreign taxable person – No.
34 Mazars Central and Eastern European tax guide 2024 Central and Eastern European tax guide 2024 Mazars 35