Lithuania income tax in 2023July 2023
From 1.1.2023, the higher 32% personal income tax for the income exceeding the threshold of 101,094 euros (EUR) should be applied.
Employment income exceeding the EUR 101,094 threshold is subject to a lower rate of social security contributions at 6.98%.
Lithuania Japan Tax TreatyJuly 2017
The two countries signed on July 13, 2017 a double tax treaty, DTA. According to the DTA the tax withholding rates will be 0%/10% for payment of dividends and 0%/10% for payment of interest.
Lithuania V.A.T. UpdateFebruary 2013
Starting January 2013 sale and repair of equipment for the disabled is subject to the super reduced V.A.T. rate of 5%.
Public transport services are subject to the reduced 9% rate.
Lithuania Immovable Tax UpdateFebruary 2012
Starting 1.1.2012 individuals pay annual 1% tax on immovable property with value exceeding Lt. 1 million.
Immovable assets of parents and children under 18 are treated as one unit for tax calculation.
Lithuania Tax Updates 2011June 2011
There are some significant changes in the 2011 legislation. Capital gain from the sale of immovable property bought after 1.1.2011 and held at least for five years before the sale is tax exempt. The application of the reduced 9% V.A.T. rate for books was extended without limit . A new reduced 9% V.A.T. rate was introduced in 2011 for hotel accommodation, being effective till 31.12.2011.
Lithuania New V.A.T. RateOctober 2009
From September 1, 2009 the standard V.A.T. rate in Lithuania increased to 21%, compared to the previous 19% rate.
Lithuania Tax Rates 2009February 2009
From 1.1.2009 there are some significant tax changes compared to 2008.
The Lithuanian corporate tax rate in 2009 is 20%, compared to 15% in 2008.
The personal income tax rate is 15%, except for dividend income which is taxed at 20%. Many tax exemptions for individuals have been cancelled or reduced.
The standard VAT rate in 2009 is 19%, compared to the previous 18% rate.
The previous reduced VAT rates of 9% and 5% are abolished.
Lithuania Tax Rates 2008February 2008
In 2008 the flat tax rate for labor income of individuals is 24%, compared to 27% in 2007.
The corporate tax rate is 15%. The standard VAT rate in Lithuania is 18%. there are also reduced VAT rates of 9% and 5%.
Lithuania Income Tax 2006July 2006
- From 1.17.2007 the new tax rate for labor income was reduced from 33% to 27%. The tax rate would be reduced from 1.1.2008 to 24%.
- From 1.1.2007 interest income from deposits in EU banks would be tax exempt in Lithuania.
Lithuania Double Taxation 2006January 2006
From 1.1.2006 Lithuania has two new double taxation treaties.
The new treaties are with Austria and Luxemburg.
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