We offer the following services:
- Preparation and submission of monthly tax / VAT declarations to the Lithuanian Tax Authorities
- Maintenance of accounting books as required by Lithuanian laws and normative acts
- Payroll administration for employees
- Basic bookkeeping administration, response to standard tax authority queries
- Monthly Accounts Receivable / Payable Report
- Preparation and submission of company Annual Report
- Tax and administration advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
BUSINESS SET UP
In Lithuania you can set up the following kinds of businesses:
• Limited Company either Private or Public (UAB or AB)
• Partnership (KUB, TUB or MB)
• Individual company (IC)
All businesses have a legal requirement to keep full and complete books and records. Accounting requirements are slightly lighter for individual companies and partnerships.
LIMITED LIABILITY COMPANIES (UAB and AB)
All Limited Companies must file accounts once a year with the Register of Business Enterprises in Lithuania. The company is required to have an employed director, the appointment of which must be done within 3 months of the company year end. An Audit will not be required unless you meet certain two of the following three criteria: 1) turnover is greater than MLTL 12 (3.47 MEUR), 2) asets above of MLTL 6 (1.7 MEUR) or 3) more than 50 employees.
This can be between two or more individuals or companies but all of them (TUB, MB) or some of them (KUB) do not have limited liability.
INDIVIDUAL COMPANY (IC)
Individual company is very similar to an MB with one participant. The owner of an IC does not have limited liability, but on the other hand there are no capital requirements.
MAIN TAXES IN LITHUANIA
The main taxes in Lithuania are summarised in the table below:
|VAT||The standard rate is 21%, the reduced rates 9% and 5% (in some cases)||The taxable period is one calendar month.|
|Corporate Income Tax||The standard rate -15%. For micro companies – 5% (average number of pay-roll workers less than 10 persons, income of taxable period does not exceed 500 thousand LTL.)||Taxable profit = Income received during the tax period – Not taxable income – Allowed deduction (including limited size deduction)
|Dividend Tax||15%||For legal persons (unless the participation exemption applies)|
|20%||For private persons|
|Personal Income Tax||The standard rate -15%, 20% to income from distributed profit|
|Social Security Contributions||3%||Pension insurance – employee’s contribution|
|6%||Health insurance – employee’s contribution|
|between 30,98% -31,7%||Employer’s contribution (depending on the risk group)|
|Real Estate Tax||from 0,3 % to 1 %||Depends on the municipality|
|Withholding Tax||15%||When making payment to certain offshore jurisdictions Withholding Tax has to be applied|