Accounting Services for Fintech Companies in Lithuania

Why Fintech Accounting Is Different

Most accounting firms can maintain a standard commercial company’s books. Fintech accounting requires additional expertise that most general accounting practices do not have — not because the underlying principles are different, but because the regulatory overlay creates obligations that simply do not exist for non-regulated businesses.

Regulatory capital monitoring

Prudential requirements for Lithuanian financial institutions depend on the type and scope of their authorisation. A fully licensed Electronic Money Institution (EMI) must maintain initial capital of at least EUR 350,000 and ongoing own funds equal to at least the higher of that minimum capital requirement or 2% of average outstanding electronic money. Additional own funds requirements may apply where the EMI provides payment services unrelated to electronic money issuance. Payment Institutions (PIs) are subject to separate initial capital requirements of EUR 20,000, EUR 50,000 or EUR 125,000, depending on their authorised services, together with ongoing own funds requirements calculated under the applicable regulatory method. Investment firms and Crypto-Asset Service Providers (CASPs) are subject to their respective prudential frameworks. Restricted EMIs and PIs operate under different requirements and should not automatically be treated as subject to the same capital rules as fully authorised institutions. A breach of minimum capital requirements is a reportable event to the Bank of Lithuania. We build regulatory capital monitoring into every fintech retainer as standard.

Client fund segregation

Licensed EMIs and PIs must safeguard relevant customer funds in accordance with the Lithuanian Law on Electronic Money and Electronic Money Institutions, the Law on Payment Institutions and applicable EU legislation. Safeguarding may be achieved through segregation of funds in eligible accounts or permitted low-risk assets, or through qualifying insurance or comparable guarantees, subject to the applicable statutory conditions. Segregation is therefore not the only legally permitted safeguarding method. Customer funds must be appropriately recorded, reconciled and distinguished from the institution’s own operating funds. The specific accounting presentation and insolvency protections depend on the safeguarding arrangement and applicable legal requirements. Incorrectly accounting for client funds — treating incoming client money as company revenue, for example — is both a regulatory violation and creates a misleading financial picture for management and the regulator.

Multi-currency and crypto asset accounting

Fintech companies typically operate in multiple currencies simultaneously, with exchange rate fluctuations creating unrealised gains and losses that must be correctly measured and disclosed. Accounting for crypto-assets depends on the characteristics of the assets, the company’s business model and the applicable financial reporting framework. Crypto-assets may qualify as inventory, intangible assets, financial instruments or another relevant asset category depending on their contractual rights and economic substance. Initial recognition, subsequent measurement, impairment and recognition of gains or losses must follow the applicable Lithuanian Financial Accounting Standards or IFRS. Fair value measurement is not universally required for every crypto-asset at each reporting date. Crypto-assets held on behalf of customers must also be distinguished from assets beneficially owned by the company, with the accounting treatment determined by the relevant contractual and control arrangements. A standard bookkeeper applying general principles to crypto transactions will produce accounts that are both inaccurate and potentially non-compliant.

Bank of Lithuania regulatory reporting

Licensed entities must submit periodic reports to the Bank of Lithuania — including quarterly prudential returns, annual financial data, and ad hoc reports when trigger events occur (capital breaches, significant operational incidents, changes to business model). These reports must reconcile with the accounting records. Discrepancies between the management accounts and the regulatory returns are a regulatory finding. We prepare the accounting records with the regulatory reporting requirements in mind — so the two sets of numbers always tell the same consistent story.

What Our Fintech Accounting Service Covers

Our fintech accounting retainer covers the full statutory accounting cycle plus the regulatory-specific obligations that apply to licensed entities. Every item below is included in the monthly retainer — there are no additional charges for routine filings or standard correspondence.

Monthly bookkeeping

All income and expense transactions are recorded each month under Lithuanian Business Accounting Standards (VAS). For fintech companies, this includes payment processing income, interchange fees, interest income on safeguarded funds, platform fees, and all operational expenses. Multi-currency transactions are converted at the applicable exchange rate and unrealised FX gains and losses are calculated and posted at month end. Bank reconciliation is performed monthly across all company accounts — including safeguarding accounts.

Regulatory capital monitoring

Each month we calculate the company’s regulatory capital position — own funds, deductions, and the applicable minimum requirement based on the licence type and current business volumes. The result is included in the monthly management report. If the capital position approaches the minimum threshold, we alert you immediately — before a breach occurs, not after. For fully authorised EMIs, the own funds requirement relating to the issuance of electronic money is calculated under Method D, generally amounting to at least 2% of average outstanding electronic money, subject to the applicable regulatory provisions. Where an EMI also provides payment services unrelated to the issuance of electronic money, an additional own funds requirement is calculated using Method A, B or C, as permitted by the relevant legislation. The institution must also maintain the applicable minimum initial capital requirement of EUR 350,000.

Client fund safeguarding reconciliation

For EMIs and PIs subject to customer fund safeguarding requirements, we assist with maintaining appropriate reconciliation procedures between safeguarded assets and the corresponding customer liabilities. Reconciliation frequency and controls must reflect the applicable regulatory requirements, transaction volumes, business model and safeguarding method. A monthly reconciliation alone is not necessarily sufficient for an institution processing customer transactions daily. Where funds are safeguarded through insurance or comparable guarantees rather than segregated accounts, the relevant controls must reflect that arrangement. Reconciliation records and exceptions must be documented and made available to the Bank of Lithuania where required.

VAT returns

Financial services are largely VAT-exempt under Lithuanian and EU law — but not all fintech activities are exempt, and the boundary between exempt and taxable supplies in a mixed fintech business requires careful analysis. We assess the VAT treatment of each revenue stream when we onboard a new fintech client and apply the correct VAT classification consistently. Monthly or quarterly VAT returns are filed with VMI through the electronic declaration system (EDS). Where the company makes EU cross-border supplies, EC sales lists and intra-community purchase declarations are included.

Payroll and SoDra declarations

If the company employs staff in Lithuania, payroll calculations must include the applicable Personal Income Tax (GPM), employee social insurance contributions and employer-side contributions. In 2026, employment income subject to the general progressive tax regime is generally taxed at rates of 20%, 25% and 32%, depending on the applicable annual income thresholds. The standard employee social insurance contribution rate is 19.5%, including compulsory health insurance contributions of 6.98%, with an additional 3% pension accumulation contribution where applicable. For a standard indefinite-term employment contract, employer contributions generally start at 1.77% of gross salary, subject to the applicable occupational risk category and statutory conditions. There is no additional universal 3% employer health insurance contribution. The relevant GPM313 and Sodra SAM declarations must be submitted within their applicable statutory deadlines.

Annual financial statements

At the end of the financial year, we prepare the annual financial statements in accordance with the applicable Lithuanian Financial Accounting Standards or IFRS, depending on the company’s legal status and regulatory requirements. The required statements and disclosures depend on the institution’s classification, activities and applicable financial reporting framework. For a Lithuanian UAB, the annual general meeting must generally approve the financial statements within four months after the financial year end. The approved financial statements must then be submitted to the Register of Legal Entities (JAR) within 30 days after approval. For companies with a calendar financial year, the general meeting must generally approve the statements by 30 April, with the subsequent filing deadline calculated separately. Additional financial and prudential reporting obligations may apply to regulated institutions.

Annual corporate income tax return

The annual Corporate Income Tax return must generally be submitted to the Lithuanian State Tax Inspectorate (VMI) by the 15th day of the sixth month following the end of the tax period. For companies using the calendar year as their tax period, the deadline is generally 15 June of the following year. The outstanding Corporate Income Tax must also generally be paid by the applicable annual deadline. From 1 January 2026, the standard Lithuanian Corporate Income Tax rate is 17%, while qualifying small companies may apply a reduced rate of 7% and eligible newly established companies may qualify for a 0% rate during their first two tax periods, subject to statutory conditions. Transfer pricing, intra-group transactions and available tax reliefs must be assessed individually.

Monthly management report in English

Each month we deliver a management report covering: revenue by category, operating expenses, gross and net profit, regulatory capital position, client fund balance, VAT position, cash flow summary, and upcoming compliance deadlines. The report is written for management, not for accountants — plain language, clear numbers, and an immediate flag on anything that requires attention. For companies reporting to a parent or investors, the report can be formatted to align with group reporting requirements.

Accounting Prices for Fintech Companies

All accounting services are priced at fixed monthly retainers for ongoing services, with fixed fees for one-off engagements. No hourly charges, no billing for routine correspondence, no surprise invoices at year end.

Monthly retainer options

Additional Services and Fixed Fees

The following services are available outside the monthly retainer at fixed prices. These cover one-off engagements, regulatory filings, and specialist services that not every company requires every month.

Regulatory and registration services

Per-item additional services

VAT Treatment for Fintech Companies

VAT in financial services is one of the most complex areas of Lithuanian tax law. The default rule is that financial services are VAT-exempt — but the definition of financial services is precise, and many fintech activities fall in a grey area between exempt and taxable supplies. Getting this wrong in either direction creates problems: over-claiming exemption results in a VAT liability; under-claiming exemption means charging VAT that should not be charged and forgoing input VAT recovery on exempt supplies.

What is generally VAT-exempt

• Payment processing and money transmission services — the service of transferring funds between accounts
• E-money issuance and redemption — creating and redeeming electronic money
• Foreign currency exchange at spot rates — currency conversion as a principal activity
• Lending and credit services — the granting, management, and negotiation of credit
• Management of qualifying special investment funds may be exempt from VAT where the relevant statutory conditions are satisfied. However, discretionary portfolio management for individual investors, investment advisory services and certain administrative services are generally subject to VAT unless a specific exemption applies. The VAT treatment must be assessed according to the nature of the service, the contractual arrangements and the applicable Lithuanian and EU VAT provisions.

What is generally VAT-taxable

• Technology services and software provision — providing software tools, APIs, or platforms that facilitate financial services (even if the underlying service is exempt)
• Compliance and KYC services — AML screening, identity verification, and compliance advisory
• Data analytics and reporting services — providing data products to clients
• Consultancy and advisory services — professional advice on financial services structure
• Account maintenance and administration fees must be assessed according to the underlying service. Charges that form part of qualifying VAT-exempt banking, payment or financial transactions may also qualify for exemption. Separately supplied administrative, technical or support services may be subject to VAT where they do not meet the conditions for a financial services exemption. The tax treatment cannot be determined solely by whether the charge is described as an account maintenance fee.

Onboarding: Getting Started with Fintech Accounting

We onboard new fintech accounting clients within 5–7 business days of receiving the initial instruction. The process is structured to ensure the accounting setup reflects the company’s regulatory status and business model from the first transaction.

Frequently Asked Questions