Taxes in Lithuania in 2023
Main taxes for legal entities: Turnover tax, Income tax.
The following taxes apply to the employee: Social tax, Income tax.
Below is an overview of tax rates and payments that will be valid in Lithuania in 2023.
Tax rates in 2023 will remain in Lithuania, as in 2022.
Turnover tax rates: 21%, 9%, 5% and 0%
Tax rate of 5%
According to the Sales Tax Act, the following goods and services are subject to a rate of 5 per cent:
- Medicines and medical aids *
- Equipment for the disabled and its repair
- Print and electronic newspapers, magazines, collections and other periodicals *
* detailed terms and conditions of the 5% rate can be found with our consultant
Tax rate of 9%
The turnover tax rate is 9% of the taxable value of the following goods and services:
- Space heating *
- Books and other non-recurrent editions *
- Carriage of passengers
- Wood products for heating
* detailed terms and conditions of the 9% rate can be found with our consultant
Tax rate of 21%
The standard turnover tax rate of 21 per cent applies to services and goods provided by a legal entity with a tax number in Lithuania.
Before reaching a turnover of 45,000 euros from the beginning of the calendar year, the company is not obliged to register as a taxpayer, but can do so voluntarily.
However, if the value of goods purchased in other European Union countries exceeds EUR 14,000, the company is obliged to register as a taxable person, even before reaching EUR 45,000 turnover.
Tax rate of 0%
It is used for COVID19 vaccines.
There are also certain services and products that are exempt from sales tax, such as
- Cultural activities
- Training services
- Insurance services
- Financial services
The full list of services and goods exempted from sales tax and terms can be found at our consultant.
Income tax rates: 32%, 20%, 15%, 5%, 0%
Tax rate of 20%
Applies to a natural person, whether resident or non-resident, who receives income in the territory of Lithuania.
The income of a natural person, not subject to income tax, depends on his income and from 2023 will reach 625 euros per month.
Tax rate of 32%
Applies to a natural person, whether resident or non-resident, who receives income in the territory of Lithuania more than 84 average salaries (i.e., 104,277 euros per year).
Tax rate of 15%
Applies to income from individual activities, both resident and non-resident of Lithuania, whose source of income is in Lithuania.
Applies to the net profit of legal entities.
The 15% tax rate also applies to the following benefits:
- Through illness
- Child care
Tax rate 5% and 0%
The 0% rate applies to the net profit of small enterprises in the first year of operation, as well as in the following years for large investments and investments. You can ask our consultant for details.
The rate of 5% applies to the net profit of small enterprises in the second year of operation.
A small enterprise is a company with less than 10 employees and an annual income of less than EUR 330,000.
Social tax rate 19.5%, 1.47%
The rate of 19.5% per cent on social tax applies to the following persons:
- A non-resident having a permanent place of activity in Lithuania
- An individual entrepreneur
The 1.47% social tax rate applies to the employer.
Payments to long-term unemployment fund
The unemployment insurance rate in 2023 will be 0.32 per cent for the employer.
Funded pension contribution
The contribution rate for supplementary pension savings in 2023 will be 3 per cent.