Law on Financial Accounting of the Republic of Lithuania
What the law regulates
The Law on Financial Accounting (No. IX-574, formerly the Law on Accounting) sets the requirements for keeping financial accounting in Lithuania: accounting documents, accounting registers, the recording of economic operations, the storage of accounting information and the responsibility for organising accounting.
Who it applies to
All legal entities registered in Lithuania, including companies owned by non-residents, and some other entities. Financial statements themselves are prepared under the Law on Financial Reporting of Undertakings and the Business Accounting Standards (BAS) or IFRS.
Key points for company owners
- Responsibility. The head of the company (director) is responsible for organising financial accounting, even when the bookkeeping itself is outsourced.
- Outsourcing. Accounting can be kept by the company’s own accountant or by an external accountant or accounting firm under a contract.
- Documents. Every economic operation must be supported by an accounting document; documents and registers must be kept for the periods set by law.
- Language and currency. Accounting in Lithuania is kept in the official language and in euro; documents in a foreign language may need a translation.
- Reporting. Accounting data are the basis for tax returns to the VMI, social insurance reports to Sodra and the annual financial statements filed with the Register of Legal Entities.
Official text: Law on Financial Accounting, No. IX-574 (English translation) (Register of Legal Acts of the Seimas, e-seimas.lrs.lt). English translations there may not include the latest amendments — the Lithuanian version prevails.
This overview explains the law in plain English for business owners. It is not legal advice and does not replace the official text; laws change, so always check the current version. For advice on your situation, contact us.