iCalculator™ LT: Lithuania Tax Calculators

Welcome to iCalculator™ LT, your comprehensive suite of free tax calculators for Lithuania. iCalculator™ has provided free tax calculators for Lithuania since 2019. Since those early days we have extended our resources for Lithuania to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Lithuania Tax Calculator and salary calculators within our Lithuania tax section are based on the latest tax rates published by the Tax Administration in Lithuania. In this dedicated Tax Portal for Lithuania you can access:

Lithuania Tax Calculator 2023/24

The Lithuania Tax Calculator below is for the 2023 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Lithuania. This includes calculations for

1. Employees in Lithuania to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Lithuania.

Overview of Taxation in Lithuania

Lithuania, like many countries, has a comprehensive tax system designed to fund public services and infrastructure. The country's taxation framework includes several different types of taxes, each with its unique compliance requirements. This overview will explore the major categories of taxes in Lithuania, focusing on their general principles rather than specific rates.

1. Personal Income Tax (PIT)

Personal Income Tax in Lithuania is levied on the income of individuals. This includes earnings from employment, business activities, and certain types of passive income like interest and dividends. Residents in Lithuania are taxed on their worldwide income, while non-residents are only taxed on income sourced within the country. Taxpayers are required to file annual tax returns, and there are provisions for deductions and allowances that can reduce the taxable base.

2. Corporate Income Tax (CIT)

Corporate Income Tax applies to the profits of companies and other legal entities. This tax is levied on both resident and non-resident companies operating in Lithuania. Resident companies are taxed on their global income, whereas non-residents are taxed only on income derived from Lithuanian sources. Companies must comply with annual filing requirements and are subject to various deductions and exemptions based on specific criteria.

3. Value Added Tax (VAT)

Value Added Tax is a consumption tax applied to the sale of goods and services in Lithuania. It is also applicable to imported goods. Businesses must register for VAT if their turnover exceeds a certain threshold. VAT compliance includes regular reporting and payment obligations. The system also allows for the deduction of input VAT paid on business-related purchases, subject to certain conditions.

4. Excise Taxes

Excise taxes in Lithuania are levied on specific goods, typically those considered harmful or luxurious, such as tobacco, alcohol, and certain fuels. These taxes are generally paid by manufacturers or importers and are factored into the final price of the products. Compliance involves specific licensing, reporting, and payment requirements.

5. Property Taxes

Property taxes are imposed on the ownership of real estate in Lithuania. The tax is calculated based on the value of the property and is paid annually by the property owner. There may be exemptions or reductions available for certain types of property or for specific taxpayer categories.

6. Social Security Contributions

While not a tax in the traditional sense, social security contributions are a significant part of Lithuania's fiscal system. These contributions fund social security benefits, including pensions, health insurance, and unemployment benefits. Both employers and employees are required to make these contributions, with rates and thresholds set by the government.

7. Compliance and Administration

The Lithuanian tax system emphasizes compliance and proper administration. Taxpayers, both individuals, and businesses, are required to maintain accurate records, file timely returns, and make prompt payments. The tax authority in Lithuania offers various electronic services to facilitate compliance, including online filing and payment systems.

In conclusion, Lithuania's tax system encompasses a range of tax types, each with its compliance requirements. While specific rates are subject to change and should be confirmed with the latest regulations, understanding the structure of these taxes is crucial for individuals and businesses operating within the country.