🇱🇹 Tax Overview — Lithuania

Private Limited Liability Company (UAB)

Lithuania applies a standard corporate income tax rate of 15%. Small companies — defined as those with fewer than 10 employees and annual revenue under €300,000 — qualify for a reduced rate of 5% during the first year, and 5% in subsequent years if they continue to meet the criteria. Dividends paid to individual residents are taxed at 15%. Dividends to EU parent companies qualifying under the Parent-Subsidiary Directive are exempt from withholding tax. VAT is 21% (9% on heating, books, and certain other goods/services). Employer social security contributions are approximately 1.77% (Sodra) plus 0.16% guarantee fund, while employee contributions are approximately 19.5% (including pension, health insurance, and sickness). Lithuania has adopted the OECD's Pillar Two rules for large multinationals.