Taxes

Do not forget that in Lithuania, when carrying out self-employment under an individual activity certificate, you are responsible for the taxes you pay to the state: personal income tax (PIT), compulsory health insurance (CHI) contributions, and state social insurance (SSI) contributions. VMI specialists can provide more information on tax issues.

Taxation of self-employment income

Income from self-employment is taxed at a rate of between 5% to 15%.

Income tax is calculated and paid on the taxable income of the individual activity, i.e., the difference between the income earned during the tax period and allowable deductions (calculated per Article 18 of the LPIT) that are the actual costs of the activity and must be substantiated by legally binding documents or by selecting an amount equal to 30% of the individual's income earned from an individual activity (which does not have to be substantiated by documentation).

For more details on the CHI and SSI contributions calculation and payment, we recommend contacting the State Social Insurance Fund Board under the Ministry of Social Security and Labour (SODRA): visit the www.sodra.lt website or call 1883.