Taxation

Working in Europe | Taxation/salaries | Lithuania

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.

From 1 January, 2019, the main taxes applied to employees are following:

  • State social insurance (Sodra taxes): 19.5%;
  • Personal income tax: 20% (if the wage doesn't exceed 84 average wages which is Eur 104 277,6 per year), 32% (if the salary does exceed 84 average wages per year);
  • Tier II pension: 2% (optional).

The employer shall additionally pay:

  • 1.47% social security contribution;
  • 0.32% the guarantee fund and long-term unemployment contribution.
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Employers are required to contribute towards allowances payable to employees during their employment. These allowances include sick pay, maternity pay and paternity pay etc.

 

Ministry of Finance of the Republic of Lithuania (main taxes)

State Tax Inspectorate