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Lithuania: Personal Taxation

Rates of Income Tax

A rate of 15% applies to employment income; dividend income is normally charged at 20% at source.

There is a personal allowance of LTL5,640 for income up to LTL9,600; then the allowance falls until it disappears for incomes over LTL37,800.

Resident individuals carrying out individual business activity may deduct 30% of their income without providing documentary proof such as receipts.

Some types of income are exempt from taxation, including income that has already been taxed in another EU member state or in a country with which Lithuania has a double tax treaty; some types of income from immoveable property and securities; and many types of receipt from insurances.

Foreign tax credits are available up to the level of tax that would have been payable on the income concerned in Lithuania; but if the income comes from a tax haven, credits are not available.



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