| Estonia | Latvia | Lithuania | |
| Corporate income tax (CIT) rate: | CIT is payable upon profit distributions (the deemed profit distribution). 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 725 | EUR 620 | EUR 840 |
| PIT rates | – 20% – Monthly basic exemption – EUR 6542 | – 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 | – 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 has joined 2nd pillar) | 10.50% | – Employee’s social security contributions – 19,5%, Participation of employee in pension scheme (optional): – 3% |
| Employer rate | – 33% social tax (the minimum monthly obligation for social tax is 654 EUR, it means, for an employer, the minimum obligation for social tax is 215,82 EUR monthly) – 0.8% unemployment insurance premium | 3.59% | 1.77-2.49 % |
| 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%. Starting 1 January 2023, the amendment to Article 62(2)(3) of the VAT Law enters into force, indicating that input VAT may be deducted on the purchase of M1 class electric vehicles if the value of that vehicle does not exceed 50 000 EUR (including VAT) |
| VAT registration thresholds | EUR 40,000 | EUR 40,000 | EUR 45,000 |
| Annual EU distance selling threshold | EUR 10,000 for sales all around the EU | ||
| Intrastat reporting | |||
| Arrivals | EUR 400,000 | EUR 330,000 | EUR 500,000 |
| Dispatches | EUR 200,000 | EUR 200,000 | EUR 300,000 |
[1] Regularly paid dividends are subject to a discount rate of 14/86. Please note: if the payment is made to a private person, an 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.
[2] The annual basic exemption is up to EUR 7,848 (EUR 654 per month). For the persons who will reach the age of old-age pension in 2023, the tax-exempt income will be EUR 8,448 per year (EUR 704 per month).
Leinonen OÜ Tallinn, Estonia Põhja pst. 25 10415 + 372 6117 700 contact@leinonen.ee | Leinonen SIA Riga, Latvia Vilandes iela 3 1010 + 371 6732 3901 leinonen@leinonen.lv | Leinonen UAB Vilnius, Lithuania Gerulaicio str. 10 08200 + 370 6101 5057 contact@leinonen.lt |
