| 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 |
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| Social security tax rates | |||
| Employee rate |
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10.50% | Employee’s social security contributions – 19,5%, Participation of employee in pension scheme (optional) – 2,7-3%. |
| Employer rate |
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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 |
