Accounting, Payroll, Tax & Legal since 1989

Baltic tax rates from 1 January 2022

  Estonia Latvia Lithuania
Corporate income tax (CIT) rate CIT is payable upon
profit distributions (the deemed profit distribution).
The CIT rate is 20%, calculated as 20/80 from taxable net payment.
Regularly paid dividends are subject to a reduced rate of 14% (14/86 from net dividends).
CIT is payable upon
profit distributions (the deemed profit distribution).
CIT rate is 20%, calculated as 20/80 from taxable net payment.
CIT is calculated as follows: Total income – non-taxable income – allowed deductions – limited deductions = taxable profit. Standard CIT rate is 15%. 20% CIT rate is applicable to credit institutions.
0% and 5% rates may be applied under certain conditions.
Withholding tax rates:
Dividends 20% or 14%1
0% or 20%/10%, reduced rates may be applied according to DTT 0% or 15%, reduced rates may be applied according to Double Treaty Taxation (DTT)
Interest 20% to residents or N/A for non-residents 0% or 20%/10%, reduced rates may be applied according to DTT 0% or 10%
Royalties 20% to residents, 10% to non-residents or N/A, in case the exemption applies N/A 0% or 10%
Management/
consulting fee
20%, the exemption may be applied according to DTT 20%, the exemption may be applied according to DTT N/A
Alienation of immovable property 20% 3% 15%
Rent/lease of real estate income 20% 5% 15%
Service fees payable to non-residents from non-cooperative tax jurisdictions 20% 20% Payments made by a Lithuanian company for services to foreign companies registered or otherwise organized in target territories are considered to be non-allowable deductions where the paying Lithuanian company does not supply to the local tax administrator evidence that:
1) such payments are related to the usual activities of the paying and receiving entity;
2) the receiving foreign entity controls the assets needed to perform such usual activities;
3) there is a link between the payment and the economically feasible operation.
Wage taxes:
Minimum monthly salary EUR 654 EUR 500 EUR 730
PIT rates
  • 20%;
  • Monthly basic exemption- EUR 5002.  
  •  20% rate on annual income up to EUR 20,004; 
  •  23% rate on annual income exceeding           EUR 20,004 
  • 31% rate on annual income exceeding EUR 78,100
  • 15% rate is applicable for sickness pay;
  • 20% rate on annual income;
  • 32% rate on annual income.
Social security tax rates      
Employee rate
  • 1.6% unemployment insurance premium; 
  • 2% funded pension contribution (if the person as joined 2nd pillar. 
10.50% Employee’s social security contributions - 19,5%, Participation of employee in pension scheme (optional) - 2,7-3%.
Employer rate
  • 33% social tax (the minimum monthly obligation for social tax is 584 EUR, it means, for an employer, the minimum obligation for social tax is 192,72EUR monthly); 
  • 0.8% unemployment insurance premium.
23.59% 1.61-3.75%
Solidarity tax N/A 25 % from income exceeding EUR 78,100 N/A
Value-added tax
Value-added tax rates 20%, 9% and 0% 21%, 12% and 5% 21%, 9% 5% and 0%. The compensational rate for farmers is 6%.
VAT registration thresholds EUR 40,000 EUR 40,000 EUR 45,000
Annual EU distance selling thresholds EUR 10,000 for the sales all around the EU  
EUR 10,000 for the sales all around the EU  
EUR 10,000 for the sales all around the EU  
 
Intrastat reporting
Arrivals EUR 400,000 EUR 280,000 EUR 280,000
Dispatches EUR 200,000 EUR 150,000 EUR 200,000

1Regularly paid dividends are subject to a discount rate of 14/86. Please note: if the payment is made to a private person, income tax of 7% is charged on dividends.

The income tax withheld can be 5% or 0% (depending on the tax agreement) in the case of a non-resident shareholder.

2The annual basic exemption is up to EUR 6,000 (EUR 500 per month). If a person’s annual income is up to EUR 14,400, they can use the exemption in full. If the annual income is between EUR 14,400 to EUR 25,200, the amount of the basic exemption is reduced pursuant to the following formula: 6,000 – 6,000 / 10,800 × (amount of income – 14,400).


Tallinn, Estonia
Leinonen OÜ
Põhja pst. 25
10415
+ 372 6117 700 contact@leinonen.ee
  Riga, Latvia
Leinonen SIA
Vilandes street 3           LV1010
+ 371 6732 3901 contact@leinonen.lv
Vilnius, Lithuania
Leinonen UAB
V. Gerulaičio 10-10
08200
+ 370 5237 5040 contact@leinonen.lt

18.01.22


Author:   

Inga Jomanta

Senior Tax Advisor

Mobile: +37123995382

Email: inga.jomanta(at)leinonen.lv

Līga Treilone

Senior Tax Advisor

Mobile: +37123995387

Email: liga.treilone(at)leinonen.lv

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