Tax Guide

Lithuania corporate taxes

A compact, e-filing-first tax system: 17% corporate income tax with strong small-company and start-up reliefs, 21% standard VAT with near-real-time invoice reporting (i.SAF), and progressive payroll taxation since 2026. Nearly everything is filed electronically through VMI (EDS, i.MAS) and Sodra (EDAS) self-service portals.

Currency EUR (€)Tax year Calendar yearEU member stateLast reviewed 2026-07-12
17%
Corporate income tax
7% small companies · 0% first two years
21%
VAT standard rate
Reduced: 12% and 5%
15%
Dividend WHT
Individuals; 0% participation exemption between companies
20–32%
PIT on salary
Three brackets since 2026
19.5%
Payroll — employee
+3% optional II-pillar pension
1.77%
Payroll — employer
2.49% for fixed-term contracts

Company forms & registration

Companies register with the Register of Legal Entities (JAR); the taxpayer register at VMI is fed from JAR automatically. VAT registration and employer registration with Sodra are separate steps.

Main legal formsUAB (private LLC), MB (small partnership), AB (public LLC), IĮ (sole proprietorship)[6][44]UAB is the default choice for SMEs; MB has no capital requirement and flexible governance.
Minimum share capital — UAB€1,000[6]Reduced from €2,500 effective 2023-05-01. MB and IĮ: no minimum capital.
IncorporationOnline via Registrų centras self-service (notary-free with standard articles), typically 1–5 business days[44]
Registers a new employer meetsJAR (Registrų centras) → VMI (EDS portal; separate VAT registration) → Sodra (1-SD notice before first hire)[44][32]

Other statutory requirements

Obligations that are neither a tax rate nor a periodic return, but that every operating company must satisfy — and that inspectors and banks actually check.

Director must be employedAn employment contract is mandatory for a company head working for remuneration[8][32]Labour Code Art. 101; the exceptions are heads of MB (may work under a civil services agreement) and IĮ. The director is registered with Sodra like any employee — 1-SD before starting — with PIT and social contributions paid on the salary.
Minimum contribution baseSodra contributions at least on the minimum monthly wage (€1,153 in 2026)[4][30][31]The contribution “floor” applies per insured person even on part-time pay, directors included. Exceptions: employees also insured with another employer, under-24s, old-age or disability pensioners and people with reduced work capacity.
Registered officeA registered office address in Lithuania[48]When the premises do not belong to the company or its founder, the owner’s (or all co-owners’) consent signed with a qualified e-signature is required for registration.
Shareholder register (JADIS)UAB shareholder data filed electronically to JADIS[6][46]Within 5 days of receiving the documents recording a share transfer (ABĮ Art. 41-1). The director is responsible for the accuracy of the filed data.
Beneficial owners (JANGIS)UBO data filed to JANGIS and kept current[47]All Lithuanian legal entities except fully state/municipality-owned ones; updates within 10 days of changes. Banks check the register when onboarding and can refuse services if it is empty.
Net assets ruleEquity may not fall below 1/2 of share capital[6]If breached, shareholders must restore equity (e.g. contributions or capital reduction) or decide on reorganisation/liquidation (ABĮ Art. 38).
Cash payment cap€5,000 per transaction in cash[10][40]Since 2022-11-01; the cap applies to the whole transaction and splitting it is prohibited. Narrow exceptions where cashless settlement is genuinely unavailable.
BookkeepingBooks kept by an employed accountant, an accounting firm, or the head personally[9]Since 2022-05-01 the Financial Accounting Law allows the company head to keep the books personally; the head remains responsible for organising accounting either way.
Work councilMandatory once average headcount reaches 20[8][41]Labour Code Art. 169; not required when an employer-level trade union covers more than 1/3 of employees.

The employment-contract rule is written for a director “working for remuneration”. Unpaid-director arrangements (typically a sole shareholder acting gratuitously) exist in practice but attract VMI and Sodra scrutiny — take advice before relying on one.

Corporate income tax (pelno mokestis)

Resident companies are taxed on worldwide income; the tax period is the calendar year unless VMI approves a different financial year.

Standard rate17%[1][11]From 2026-01-01. Was 16% in 2025 and 15% through 2024 — the added points fund the State Defence Fund.
Small-company rate7%[1][11]Annual income ≤ €300,000, with related-company anti-fragmentation rules. The former “fewer than 10 employees” condition was abolished from 2026; the rate was 6% in 2025.
Start-up relief0% for the first two tax periods[1][11]Extended from the first period only as of 2026. Conditions: income ≤ €300,000 in each period, all shareholders are natural persons, and activity/ownership continuity requirements are met over three consecutive periods.
Credit institutions22% on taxable profit above €2 million[1]Standard 17% plus a permanent 5-point add-on.
Immediate asset write-off100% first-year deduction for new equipment[11]From 2026: newly acquired machinery, computers and communications equipment, software, acquired rights and lorries/trailers (≤ 5 years old), if used in the activity for ≥ 3 years.
Loss carryforwardIndefinite, offset capped at 70% of taxable profit per year[1][11]The cap does not apply to companies taxed at the 7% rate. Losses from disposal of securities: 5 years, against same-type gains only. Group loss transfer possible within ≥ 2/3-owned groups.
Investment incentivesTriple deduction of R&D costs; large-project CIT holiday[1][11]The large investment project exemption runs up to 30 years for projects started by end-2035.
Advance CITFR0430 — paid quarterly on the 15th of the last month of each quarter[13]Returns: by Mar 15 for Q1–Q2 and Sep 15 for Q3–Q4 (or the whole year by Mar 15 under the forecast method). Exempt: first-year companies and those with prior-year taxable income ≤ €300,000.
Annual return & paymentPLN204, by the 15th day of the 6th month after year end[12]June 15 for calendar-year companies; tax due the same day.

Withholding taxes & dividends

Dividends to non-residents17%[1]Participation exemption → 0% when the recipient holds ≥ 10% of voting shares for ≥ 12 continuous months; not available to recipients in blacklisted territories.
Dividends between Lithuanian companies0% with participation exemption, otherwise 17% withheld by the payer[14][15]Declared on FR0640 by the 15th day of the month following payment.
Dividends to resident individuals15% PIT, withheld at source[3][26]Flat rate — dividends stay outside the progressive 2026 aggregation.
Interest to non-residents10%[1]0% when the recipient company is established in the EEA or a tax-treaty country.
Royalties to non-residents10%[1]0% for qualifying associated EU companies (Interest & Royalties Directive).
ReportingFR0313 — within 15 days after the end of the payment month[16]Treaty relief at source requires a DAS-1 residence certificate approved before payment.

VAT (PVM)

Lithuania runs near-real-time VAT reporting: registered payers submit monthly invoice registers (i.SAF) alongside the VAT return, and VMI pre-fills the return from them. The reduced-rate structure changed on 2026-01-01: the 9% rate was abolished.

Standard rate21%[2][17]
Reduced rate — 12%Accommodation; scheduled passenger transport; admission to cultural and arts events[19][18]New from 2026-01-01, replacing the former 9% rate for these categories.
Reduced rate — 5%Medicines & medical aids; technical aids for the disabled; newspapers & periodicals; books[20][18]Books and non-periodical publications moved from 9% to 5% on 2026-01-01. The former heating and firewood reliefs expired. 0% applies to exports and intra-EU supplies.
Registration threshold€45,000 taxable turnover in the current or previous calendar year[21][2]Calendar-year counting since 2025-05-01 (previously rolling 12 months). Intra-EU acquisitions: €14,000. The EU cross-border SME scheme (€100,000 EU-wide cap) is available.
VAT returnFR0600, monthly by the 25th of the following month[22]Payment due the same day. A calendar-quarter period is possible if prior-year income ≤ €300,000 and there are no intra-EU acquisitions.
Invoice registersi.SAF, monthly by the 20th of the following month[23]Registers of issued and received VAT invoices, submitted through the i.MAS platform.
Consignment notesi.VAZ — waybill data filed before transport starts[24]At most 7 days in advance; corrections within 5 working days of delivery.
EU sales listFR0564, monthly by the 25th[22]For intra-EU supplies of goods and services.
E-commerce (OSS)Quarterly OSS return, by the last day of the month after the quarter[25][50]EU-wide €10,000 threshold for distance sales before destination-country VAT applies.
Intrastat (2026)Arrivals above €600,000; dispatches above €400,000[49]Monthly reports by the 10th working day of the following month.

Payroll: PIT & social insurance

The employer withholds personal income tax and the employee share of social insurance, adds a small employer share on top, and reports monthly to both VMI and Sodra.

Personal income tax (GPM)20% / 25% / 32% progressive[3][26]Since 2026: 20% up to 36 average wages a year (≈ €83,237), 25% between 36 and 60 average wages, 32% above (≈ €138,729). Most income types are aggregated; dividends stay at a flat 15%.
Tax-exempt amount (NPD)Up to €747/month, phased out with income[3][26][31]2026 formula: €747 − 0.49 × (monthly wage − €1,153). Minimum monthly wage in 2026: €1,153.
Employee social insurance19.5% of gross salary[4][30]Pension 8.72% + sickness 1.99% + maternity 1.81% + compulsory health insurance 6.98%; withheld by the employer. Optional II-pillar pension accumulation (voluntary since 2026) adds 3%.
Employer contributions1.77% (open-ended contracts)[4][30]2.49% for fixed-term contracts. Includes unemployment (1.31% / 2.03%), accident insurance (0.14% at category I, higher by risk group), Guarantee Fund 0.16% and Long-term employment fund 0.16%.
Ceiling & floorCeiling: 60 average wages/year (€138,729 in 2026), social insurance only[4][31][30]Health insurance has no ceiling; since 2026 the ceiling applies per employer. Floor: contributions due at least on the minimum wage, with exceptions (second job, under 24s, pensioners, disability).
PIT remittanceBy the 15th (wages paid by the 15th) or month end (paid later)[27]
Monthly & annual PIT returnsGPM313 by the 15th of the following month; GPM312 by February 15[28][29]GPM312 details amounts paid and tax withheld per recipient over the previous year.
Sodra reportingSAM report and contributions by the 15th of the following month[33][32]1-SD no later than 1 working day before employment starts; 2-SD no later than the next working day after termination. All via Sodra’s EDAS portal.

The 2026 reform replaced the previous two-bracket PIT (20%/32%) with three brackets and made II-pillar pension participation voluntary, with a transitional withdrawal window in 2026–2027.

Other taxes companies meet

Real estate tax0.5%–3% municipal rate + 0.2% state add-on[5][34]On commercial real estate owned by companies; the 0.2% state (defence) component applies on top from 2026-01-01. Return and payment by Feb 15 of the following year; quarterly advances (Mar/Jun/Sep 15) when the annual amount exceeds €500.
Land tax0.01%–4% of land tax value, set by municipalities[36]VMI prepares and delivers the declaration by Nov 1; payment by Nov 15 of the tax year.
Pollution taxPer-pollutant and packaging rates[37]Applies to emitters and producers/importers of packaged goods. Annual declarations (FR0521–FR0524) and payment by Feb 15.
Excise dutiesAlcohol, tobacco, energy products — rates raised for 2026[38]New from 2026-01-01: excise on sweetened non-alcoholic beverages (€7.4/hl below 8 g sugar per 100 ml, €21/hl above); producers, importers and EU acquirers must register as excise payers.
Security contribution10% on non-life insurance premiums[39]New from 2026-01-01 for contracts concluded or renewed from that date; remitted by insurers and passed on via premiums, so it raises companies’ insurance costs. Compulsory personal MTPL and crop/livestock covers are exempt.

Accounting & financial statements

Accounting standardsLithuanian FAS (VAS) or IFRS[7]IFRS mandatory for listed companies, banks and insurers; others may opt in.
Approval & filing of annual statementsApprove within 4 months of year end; file with Registrų centras within 30 days of approval[7][45]For financial years ending on or after 2026-07-01 the regime changes: approval and filing within 5 months, with a hard filing deadline of May 31.
Statutory audit thresholds2 of 3 exceeded: net turnover €4.5m, assets €2.5m, 50 employees[7]Thresholds in force since 2024-07-01; public companies (AB) are always audited. From 2026 JAR rejects financial statements filed without a required auditor’s report.
SAF-T (i.SAF-T)Standard audit file on VMI request[42]Obligatory for entities whose net sales revenue in the year before last exceeded €300,000.
E-invoicingMandatory for B2G via SABIS (Peppol BIS 3.0)[43]SABIS replaced E.sąskaita on 2024-09-01. No domestic B2B mandate as of mid-2026; EU-level digital reporting (ViDA) is expected from 2030.
Document retention10 years for accounting documents[7]

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

FormWhat it isWho filesFrequencyDeadlineFiled with
PLN204Annual corporate income tax return[12]All CIT payersannual15th day of the 6th month after year end (Jun 15)VMIEDS
FR0430Advance corporate income tax return[13]CIT payers with prior-year income > €300kquarterlyReturns Mar 15 & Sep 15; payments Mar/Jun/Sep/Dec 15VMIEDS
FR0600VAT return[22]VAT-registered personsmonthly25th of the following monthVMIEDS
i.SAFRegisters of issued & received VAT invoices[23]VAT-registered personsmonthly20th of the following monthVMIi.MAS
i.VAZRoad consignment note (waybill) data[24]Shippers of goods by road within Lithuaniaper eventBefore transport starts (max 7 days early)VMIi.MAS
FR0564EU sales list (goods & services)[22]Suppliers making intra-EU suppliesmonthly25th of the following monthVMIEDS
FR0640Dividend CIT return[15]Companies paying/receiving taxable dividendsper event15th of the month after dividend paymentVMIEDS
FR0313WHT return on payments to foreign entities[16]Payers of dividends/interest/royalties abroadper eventWithin 15 days after the payment monthVMIEDS
GPM313Monthly PIT withholding return[28]All employersmonthly15th of the following monthVMIEDS
GPM312Annual statement of income paid to individuals[29]All employersannualFebruary 15VMIEDS
SAMMonthly social insurance report[33]All employersmonthly15th of the following month (with payment)SodraEDAS
1-SD / 2-SDEmployee hire / termination notices[32]All employersper event1-SD ≥ 1 working day before start; 2-SD next working day after endSodraEDAS
KIT719Real estate tax return (KIT711 for FY2025)[34][35]Companies owning taxable real estateannualFeb 15 of the following year; advances Mar/Jun/Sep 15 if tax > €500VMIEDS
FR0521–24Pollution tax declarations[37]Emitters; producers/importers of packagingannualFebruary 15 of the following yearVMIEDS
OSSOne Stop Shop VAT return[25][50]OSS-registered e-commerce sellersquarterlyLast day of the month after the quarterVMIOSS portal
IntrastatIntrastat arrivals / dispatches reports[49]Traders above €600k arrivals / €400k dispatches (2026)monthly10th working day of the following monthLT CustomsiMAIS
FSAnnual financial statements[7][45]All companiesannualWithin 30 days of approval (approval ≤ 4 months after year end)Registrų centrasJAR self-service
i.SAF-TStandard audit file (SAF-T)[42]Net sales > €300k in the year before laston demandOn VMI request during auditVMIi.MAS

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly
  • FR060025th of the following month
  • i.SAF20th of the following month
  • FR056425th of the following month
  • GPM31315th of the following month
  • SAM15th of the following month (with payment)
  • Intrastat10th working day of the following month
quarterly
  • FR0430Returns Mar 15 & Sep 15; payments Mar/Jun/Sep/Dec 15
  • OSSLast day of the month after the quarter
annual
  • PLN20415th day of the 6th month after year end (Jun 15)
  • GPM312February 15
  • KIT719Feb 15 of the following year; advances Mar/Jun/Sep 15 if tax > €500
  • FR0521–24February 15 of the following year
  • FSWithin 30 days of approval (approval ≤ 4 months after year end)
per event
  • i.VAZBefore transport starts (max 7 days early)
  • FR064015th of the month after dividend payment
  • FR0313Within 15 days after the payment month
  • 1-SD / 2-SD1-SD ≥ 1 working day before start; 2-SD next working day after end
on demand
  • i.SAF-TOn VMI request during audit

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

  1. Law on Corporate Income Tax (Pelno mokesčio įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  2. Law on Value Added Tax (Pridėtinės vertės mokesčio įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  3. Law on Personal Income Tax (Gyventojų pajamų mokesčio įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  4. Law on State Social Insurance (Valstybinio socialinio draudimo įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  5. Law on Immovable Property Tax (Nekilnojamojo turto mokesčio įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  6. Law on Companies (Akcinių bendrovių įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  7. Law on Financial Reporting by Undertakings (Įmonių atskaitomybės įstatymas)e-seimas.lrs.lt — Register of Legal Acts · law
  8. Labour Code (Darbo kodeksas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  9. Law on Financial Accounting (Finansinės apskaitos įstatymas), consolidated texte-seimas.lrs.lt — Register of Legal Acts · law
  10. Law on Restriction of Cash Settlements (Atsiskaitymų grynaisiais pinigais ribojimo įstatymas)e-seimas.lrs.lt — Register of Legal Acts · law
  11. Corporate income tax changes from 2026VMI (State Tax Inspectorate) · authority
  12. Annual CIT returns PLN204 — filing rulesVMI (State Tax Inspectorate) · authority
  13. Advance CIT return FR0430 — filing rulesVMI (State Tax Inspectorate) · authority
  14. Taxation of dividends paid to Lithuanian entities (PMĮ Art. 33)VMI (State Tax Inspectorate) · authority
  15. Dividend CIT return FR0640VMI (State Tax Inspectorate) · authority
  16. Return on income paid to foreign entities FR0313VMI (State Tax Inspectorate) · authority
  17. VAT rates overviewVMI (State Tax Inspectorate) · authority
  18. VAT changes from 2026VMI (State Tax Inspectorate) · authority
  19. Reduced 12% VAT rate (PVMĮ Art. 19)VMI (State Tax Inspectorate) · authority
  20. Reduced 5% VAT rate (PVMĮ Art. 19)VMI (State Tax Inspectorate) · authority
  21. When VAT registration becomes obligatoryVMI (State Tax Inspectorate) · authority
  22. Filing VAT returns (FR0600, FR0564)VMI (State Tax Inspectorate) · authority
  23. i.SAF register submission deadlinesVMI (State Tax Inspectorate) · authority
  24. i.VAZ consignment note data — submission and correctionVMI (State Tax Inspectorate) · authority
  25. E-commerce and VAT (OSS/IOSS)VMI (State Tax Inspectorate) · authority
  26. Personal income tax changes from 2026VMI (State Tax Inspectorate) · authority
  27. PIT payment deadlines for employersVMI (State Tax Inspectorate) · authority
  28. Monthly income return GPM313VMI (State Tax Inspectorate) · authority
  29. Annual income return GPM312VMI (State Tax Inspectorate) · authority
  30. Contribution rates for employed personsSodra · authority
  31. Sodra contribution rates and figures from 2026-01-01Sodra · authority
  32. SD notices (1-SD hire, 2-SD termination)Sodra · authority
  33. Employment: notices, contributions and rates (SAM)Sodra · authority
  34. Real estate tax changes for legal persons from 2026VMI (State Tax Inspectorate) · authority
  35. Real estate tax return KIT711VMI (State Tax Inspectorate) · authority
  36. Land taxVMI (State Tax Inspectorate) · authority
  37. Pollution taxVMI (State Tax Inspectorate) · authority
  38. Excise duty changes from 2026 (incl. sweetened beverages)VMI (State Tax Inspectorate) · authority
  39. Security contribution (saugumo įnašas) from 2026VMI (State Tax Inspectorate) · authority
  40. Cash settlement restrictionsVMI (State Tax Inspectorate) · authority
  41. Labour Code — employer obligations overviewVDI (State Labour Inspectorate) · authority
  42. SAF-T — frequently asked questionsVMI (State Tax Inspectorate) · authority
  43. SABIS — e-invoicing for public sector buyersNational Centre for General Functions (NBFC) · authority
  44. Register of Legal Entities (JAR) — incorporationRegistrų centras · register
  45. Procedure for filing annual financial statementsRegistrų centras · register
  46. JADIS — filing UAB shareholder data (guidance)Registrų centras · register
  47. JANGIS — filing beneficial owner dataRegistrų centras · register
  48. Intrastat reporting thresholdsStatistics Lithuania (Official Statistics Portal) · authority
  49. VAT One Stop Shop (OSS) rulesEuropean Commission · eu