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Taxation in Lithuania

Corporate Tax Rate. These taxes are collected from entities and calculated by deducting expenses and non-taxable income over the taxable period. Also paid by non-profit organisations obtaining profit from commercial activities. Some calculations:

Company with 10 or less employees with a maximum 300 000 EUR income over the period is taxed at 0% in the first taxable period and 5% in the other periods.

With more than 300 000 EUR of income taxes are 15%.

Personal Income Tax. Taxes collected from individuals no matter you are employed or self-employed and is designated on distinct origins.

The personal income tax rate in Lithuania is currently at 15% yearly.

Foreign residents must pay tax only from that part of income which is received in Lithuania.

Sales Tax Rate - VAT. In Lithuania this type of tax stands at 21%.

9% are reduced tax rate for some domestic passenger transport; books (excluding e-books); newspapers and periodicals; hotel accommodation; district heating.

5% for Pharmaceutical products; medical equipment for disabled persons.

0% Intra-community and international transport.

Revenues from the Sales Tax are an important source of income for the government of Lithuania.

Capital gains. There are no special capital gains taxes in Lithuania; capital gains are treated as ordinary taxable income and subject to the income tax rate of 15%. Capital gains from the sale of registered real property, except for property used in individual activities, owned for at least three years are tax exempt.

Real Estate Tax. These taxes should be paid by Lithuanian and foreign natural and legal persons. Tax period is calendar year. Tax is devoted on immovable property in Lithuania, with the exception of:

Unused immovable property with unfinished construction;

Immovable property created (acquired) on the basis of public and private partnership, if the public and private partnership agreement is under implementation and this type of property is used for the purpose prescribed by the agreement.

The value of immovable property of natural persons (dwelling, garden, garage etc.) exceeding EUR 220,000 is subject to tax rate of 0.5 per cent.

The tax rate of other immovable property shall range from 0.3 per cent up to 3 per cent of the taxable value of immovable property.

Land Tax. Land tax payers are defined as owners of private land situated in Lithuania, except forestry land. Taxable period is calendar month. The tax rate varies from 0,01 to 4% of the taxable value of the land. The specific rate for each calendar year is established by the municipalities.

Inheritance and Gift Tax. Beneficiary fork out these taxes. Residents pay on all inherited property - immovable and movable property, money, securities, etc. Non-residents pay the inheritance tax on inherited immovable property located in Lithuania and movable property, which is subject to legal registration. The rate of the inheritance tax depends on the value of the inherited property:

< 150 000 EUR - 5%

> 150 000 EUR - 10%

Exemption is when value of the inherited property < 3000 EUR.

Excise duty. The Excise Tax is payable by the owners of storehouses of excise goods, registered, and not registered traders, public legal persons, also persons receiving goods from other EU countries for the purpose of business or personal usage, taxable persons, situated in the other EU country, fiscal agents, etc.

The Excise Tax is imposed on four classes of goods:

Ethyl alcohol, nondenatured spirit and alcoholic beverages including beer;

Smoking tobacco and tobacco products;

Coffee, chocolate and food containing cocoa;

Jewellery, gold and silver except for imitation jewellery and coins;

Energy products;

Electric power.

Lottery and gaming tax. Taxpayers are legal persons organising lotteries in accordance with the Law on Lotteries and organising gambling in accordance with the Law on Gambling. Rates:

a 5% rate is imposed on the nominal value of lottery tickets distributed while organising a lottery;

a 15% rate is imposed on the amount of receipts from bingo, totalisators and bets - less the amount of winnings actually paid;

Fixed tax rate is imposed on gambling machines and table gambling:

for a gambling machine Category A - EUR 232 per month;

for a gambling machine Category B - EUR 87 per month;

for a roulette, card or dice table - EUR 1738 per month.

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