Worldwide income received by a Lithuanian tax resident is subject to PIT. However, only the following income sourced in Lithuania by a non-resident is subject to PIT:
- Employment-related income or income arising from substantially similar relations.
- Income from distributed profits and payments to the members of the Board or Supervisory Board.
- Interest income, except for interest received on government non-equity securities.
- Income from sports activities, including income directly or indirectly related to those activities irrespective of whether the payment is made directly to the sportsman concerned or a third party acting on behalf of and for that sportsman.
- Income from performing activities, including income directly or indirectly related to those activities irrespective of whether the payment is made directly to the performing artist concerned or a third party acting on behalf of and for that performing artist.
- Income from the lease of immovable property located in Lithuania.
- Income from the sale or transfer of movable property if that object is subject to legal registration in accordance with the local regulations and such object is (or must be) registered in Lithuania, as well as income from the sale of immovable property located in Lithuania.
- Income derived from individual activities carried out through a fixed base, as well as income earned abroad that is attributed to that fixed base in Lithuania, where the said income is related to the activities of a non-resident through the fixed base in Lithuania.
- Compensation for copyright infringement.
Personal income tax rates
PIT at a 20% rate is applied to income amounts not exceeding 90,246 euros (EUR) per calendar year in 2022 and at a 32% rate for the exceeding part for:
- employment-related income
- payments to the members of the Board or Supervisory Board
- income derived under copyright agreements (when it is received from the company that is also the employer of individual), and
- income under civil agreement received by a manager of small partnership who is not a member of such small partnership.
Income from profit distribution (e.g. dividends) is taxable at a flat PIT rate of 15%.
Individual activity income is taxed depending on the amount of income received. PIT calculated at the 15% flat rate on taxable income is reduced by applying a PIT credit, calculated according to special formulas (effective rate may vary from 5% to 15%). Please see Business income in the Income determination section for more information.
Other income not specified above is taxed at a PIT rate of 15% if income amounts do not exceed EUR 180,492 per calendar year. A 20% PIT rate is applicable to income exceeding this threshold.
Local, state, or provincial PIT rates
There are no local, state, or provincial PIT rates applicable in Lithuania.