What taxes have to be paid?
What taxes have to be paid?
In carrying out individual activity under an individual activity certificate, you have to pay:
- personal income tax (PIT);
- depending on the nature of the activity carried out, the obligation to register, declare and pay VAT in Lithuania may arise;
- in certain cases, the obligation to pay Compulsory Health Insurance (CHI) and State Social Insurance (SSI) contributions may arise. Information on the payment of these contributions and applicable exemptions is provided by Sodra.
The calculator of taxes payable on the income from individual activity can be found here.
The PIT is calculated as follows:
(Income - expenses) x 15% – credit
When the annual profit of individual activity (after deducting expenses from the income) does not exceed 20,000 EUR, the actually calculated amount of income tax is equal to 5% of the profit.
When the annual profit of individual activity (after deducting expenses from the income) exceeds 20,000 EUR, the amount of income tax increases respectively from 5% to 15%.
When the annual profit of individual activity reaches an amount of 35,000 EUR, then a 15% rate of income tax applies.