Individual enterprise

1. Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period does not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.
2. The Standard Value added tax (VAT) rate is 21%. Taxable persons engaged in the provision of goods or services in Lithuania must register as VAT payers and calculate and pay VAT to the state budget. However, a taxable person of the Republic of Lithuania does not have to register as a VAT payer and does not have to calculate nor pay VAT on the goods and/or services supplied, provided that the aggregate amount received from the goods and/or services supplied as part of routine business activities does not exceed EUR 45,000 during the last 12 months. Registration as a VAT payer is not mandatory where the aggregate value of all goods purchased from the other EU Member States does not exceed EUR 14,000 (excluding VAT). There is an opportunity for voluntary registration as a VAT payer in cases where the aforesaid limit amounts are not exceeded.
3. Real Estate Tax (if the legal entity has registered immovable property) – 0,30% – 3,00% (depends on immovable property value).
4. Dividends and other income from distributed profits shall be taxed at a rate of 15 %.

Personal withdrawals by Individual Enterprise owner:

• Personal income tax – 20 % of the number of funds withdrawn for personal needs.
• State social insurance contributions are paid from 50 % of the number of funds withdrawn for personal needs.

State social insurance contribution rates:

• 13,83 %;
• 15,93 % if a partner of small partnership participates in the supplementary accumulation of pensions (2,1 %);
• 16,83 % if a partner of small partnership participates in the supplementary accumulation of pensions (3,0 %);
• Compulsory health insurance – 6,98 % from 50 % of the number of funds withdrawn for personal needs.

Law on Tax Administration of the Republic of Lithuania

If you are planning to hire staff, you will find all the necessary information here