There are many different taxes in Lithuania. The following taxes and duties are considered to be the main ones: income tax of individuals; corporate income tax; value-added tax; excise duties; real estate tax; land tax; inheritance tax; and lottery and gambling tax.
Employers and employees are required to make social security contributions. During employment the employer will be liable for paying the following tax:
- social insurance contributions counted from the gross salaries at the rate of 30.98 %;
- payment to the guarantee fund counted from the gross salaries of 0.2%.
Employees are entitled to pay:
- 15% of personal income tax. Lithuania has signed treaties with many countries to avoid double taxation. In case your country is not on the list, you will be asked to pay taxes to the national budget of your home country as well.
- obligatory insurance tax of 6%
- 3% for the social insurance.
Employers are required to contribute towards allowances payable to employees during their employment. These allowances include sick pay, maternity pay and paternity pay etc.
Researcher from an EU and EEA member state, as well as from Switzerland, Belarus, the Ukraine, Russia, Canada, and the USA, having labour contract valid his/her home country, is not subject to paying social security tax or healthcare tax in Lithuania; these taxes must be paid in his/her home country.
Foreign researchers employed in national enterprises, political parties, labour unions, religious communities, or national branch offices of EU or EEA member states, are exempted from paying the cover tax. Researchers employed by other legal entities (privately owned companies, banks, credit unions, etc.) pay a 0.1 per cent cover tax fee of the salary.