The main taxes paid by companies (UAB, MB, etc.) are as follows:
- Profit tax;
- Value added tax (VAT);
- Social insurance (VSD and PSD);
- Personal income tax (PIT).
The same rates of profit tax, value added tax and personal income tax apply to companies of Lithuanian and foreign citizens (UAB, MB, etc.) established in Lithuania, only social insurance taxes (VSD and PSD) differ.
- The standard profit tax rate is 15%. However, companies (UAB, MB, etc.) can apply a preferential 5% or even 0% profit tax rate if:
- the average number of employees on the lists does not exceed 10 people and
- income for the tax period does not exceed 300,000 Eur
- The standard VAT rate is 21%. According to the VAT law, companies (UAB, MB, etc.) must register in the register of VAT payers, if the income received for the sold goods (provided services) in the territory of the country during the last 12 months are greater than 45,000 Eur. Also if companies (UAB, MB, etc.) purchase (import) goods from another member state for more than 14,000 Eur per calendar year.
- Social insurance taxes for a foreigner who works in different EU countries under different employment contracts are paid only in one country. If a foreigner submits an A1 (E101) certificate to a Lithuanian company, the social insurance taxes are recalculated.
- Personal income tax rates – 20% for income related to employment relations or relations corresponding to their essence and 15% for income from distributed profit (dividends).
In summary, the same rates of profit tax, value added tax and personal income tax are applicable to companies established by Lithuanian and foreign citizens (UAB, MB, etc.) in Lithuania, only social insurance taxes (VSD and PSD) differ.