Taxation of income from the sale of standing timber, roundwood

If income from the sale of standing timber or roundwood (not generated under self-employment) does not exceed EUR 2,500 per year, then there is no obligation to pay personal income tax. This EUR 2,500 includes all income from the sale of standing timber or roundwood, including income from the sale of other property not subject to registration.

 If income from the sale of standing timber or roundwood exceeds EUR 2,500 per year, then personal income tax on such income is calculated as follows: 

PIT = (sale proceeds* – purchase price** –  compulsory payments*** – EUR 2,500) x 15%

 

*sale proceeds: the amount you sold standing timber or roundwood for;
**purchase price: the purchase price of standing timber or roundwood; 
***compulsory payments: costs necessarily incurred when selling standing timber or roundwood (e.g. compulsory deductions on income from the sale of raw or standing timber). 

If standing timber or roundwood is sold to a company, then the company has to calculate, withhold and pay 15% income tax on the total amount paid. 

The purchase price and the EUR 2,500 exemption are deducted from the sales income at the end of the year when filing the annual income tax return. However, if the annual amount of this and other non-employment taxable income exceeds 120 average national wages (hereinafter referred to as “ANW”) (120 ANWs in 2024 amounted to EUR 228,324; 120 ANWs in 2023 amounted to EUR 202,188; 120 ANWs in 2022 amounted to EUR 180,492; 120 ANWs in 2021 amounted to EUR 162,324; 120 ANWs in 2020 amounted to EUR 148,968; 120 ANWs in 2019 amounted to EUR 136,344), then the part in excess is taxed at an income tax rate of 20%. The exact amount of the personal income tax payable is calculated in the annual income tax return.

The annual amount of income comprised of 120 ANWs does not include income from self-employment, income from distributed profits, royalties received from the employer, profit shares and remuneration for membership in the Supervisory or Management Board, loan committee, income received under civil (service) agreements by small partnership directors in respect of management activities who, according to Republic of Lithuania Law on Small Partnerships, are not members of those small partnerships themselves.

For more detailed information, please see here (only in Lithuanian).