Lithuania - Tax Guide for Freelance Contractors

Tax residents in Lithuania:          are liable for income tax in Lithuania on their worldwide income;

Non tax residents in Lithuania:  are liable for tax on their Lithuanian-source income and income derived from activities through a fixed base in Lithuania,  including foreign-source income attributed to that fixed base. 

Individuals will be regarded as tax residents:

• if their permanent place of residence is in Lithuania during the tax period,
• if their centre of personal and economic interests is in Lithuania,
• if they are present in Lithuania for at least 183 days during the tax period, or
• if they are present in Lithuania for at least 280 days in 2 consecutive tax periods and have stayed in Lithuania for at least 90 days in one of those periods.

Married persons are taxed separately.

Taxable income includes:

• employment income,
• income from individual commercial activities,
• royalties,
• income from the leasing of assets and other qualifying income.

Certain deductions are permissible for 2012 including:

• an annual tax allowance of LTL 5’640 is applicable if annual income does not exceed LTL 9’600,
• the annual tax exemption is reduced accordingly for annual income between LTL 9’600 and LTL 37’800,
• no annual tax exemption is applicable if the annual income exceeds LTL 37’800,
• an additional tax allowance of LTL 100 per month for the first child and LTL 200 for the second child and any subsequent children,
• deductions are available for the costs of life insurance, pensions funds and vocational training or study (subject to certain limitations).

Income tax rates for 2012:

• 15.00% standard tax rate for personal income.

Filing date:

By May 1st, following the end of the taxable year.