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v10Lithuania
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| 1 | --- |
| 2 | name: lithuania-pit |
| 3 | description: Use this skill whenever asked to prepare, review, or classify transactions for Lithuania Personal Income Tax (Gyventojų pajamų mokestis / GPM), annual return filing with VMI, or advise on Lithuanian income tax rates and Sodra contributions. Trigger on phrases like "GPM", "pajamų mokestis", "Lithuanian income tax", "VMI", "Sodra", or any Lithuania personal tax request. ALWAYS read this skill before touching any Lithuania PIT work. |
| 4 | version: 1.0 |
| 5 | jurisdiction: LT |
| 6 | tax_year: 2025 |
| 7 | category: international |
| 8 | depends_on: |
| 9 | - foundation |
| 10 | --- |
| 11 | |
| 12 | # Lithuania Personal Income Tax (GPM) Skill v1.0 |
| 13 | |
| 14 | --- |
| 15 | |
| 16 | ## Section 1 — Quick reference |
| 17 | |
| 18 | | Field | Value | |
| 19 | |---|---| |
| 20 | | Country | Lietuvos Respublika (Republic of Lithuania) | |
| 21 | | Tax | Gyventojų pajamų mokestis (GPM — Personal Income Tax) | |
| 22 | | Currency | EUR (€) | |
| 23 | | Tax year | Calendar year (1 Jan – 31 Dec) | |
| 24 | | Current tax year | 2025 | |
| 25 | | Tax authority | VMI (Valstybinė mokesčių inspekcija — State Tax Inspectorate) | |
| 26 | | Filing portal | https://deklaravimas.vmi.lt | |
| 27 | | Filing deadline | 1 May of following year | |
| 28 | | Source credit | `sarunas/income-tax-calculator` (MIT, 21 stars) | |
| 29 | | Contributor | Open Accountants Community | |
| 30 | | Validated by | Pending — requires sign-off by a Lithuanian mokesčių konsultantas | |
| 31 | | Skill version | 1.0 | |
| 32 | |
| 33 | --- |
| 34 | |
| 35 | ## Section 2 — Income tax rates (GPM tarifai) — 2025 |
| 36 | |
| 37 | ### Employment income (su darbo santykiais susijusios pajamos) |
| 38 | |
| 39 | | Annual taxable income (EUR) | Rate | |
| 40 | |---|---| |
| 41 | | Up to €108,480 (60 × average salary) | **20%** | |
| 42 | | Over €108,480 | **32%** | |
| 43 | |
| 44 | ### Individual activity income (individualios veiklos pajamos) |
| 45 | |
| 46 | | Type | Rate | |
| 47 | |---|---| |
| 48 | | Business certificate (verslo liudijimas) | Fixed patent fee | |
| 49 | | Individual activity (freelance) — on profit | **15%** | |
| 50 | | Alternative: 5% on gross (if expenses not tracked) | **5%** gross + VSD/PSD | |
| 51 | |
| 52 | ### Capital income (kapitalo pajamos) |
| 53 | |
| 54 | | Type | Rate | |
| 55 | |---|---| |
| 56 | | Interest income | 15% | |
| 57 | | Dividends | 15% | |
| 58 | | Capital gains (securities, property) | 15% | |
| 59 | | Rental income (nuomos pajamos) | 15% (or 20% if registered activity) | |
| 60 | |
| 61 | ### Other |
| 62 | |
| 63 | | Type | Rate | |
| 64 | |---|---| |
| 65 | | Lottery / gambling winnings > €3,000 | 15% | |
| 66 | | Foreign dividends | 15% | |
| 67 | |
| 68 | --- |
| 69 | |
| 70 | ## Section 3 — Social insurance (Sodra) contributions |
| 71 | |
| 72 | ### Employee (darbuotojas) |
| 73 | |
| 74 | | Contribution | Rate | Cap | |
| 75 | |---|---|---| |
| 76 | | Pension (pensijų) | 8.72% | No cap | |
| 77 | | Health (sveikatos) | 6.98% | No cap | |
| 78 | | **Total employee** | **15.7%** | — | |
| 79 | |
| 80 | Note: Additional voluntary pension (II/III pillar) — 2.7% or more (state co-finances). |
| 81 | |
| 82 | ### Employer (darbdavys) |
| 83 | |
| 84 | | Contribution | Rate | |
| 85 | |---|---| |
| 86 | | Social insurance (VSD) | 1.77% | |
| 87 | | Guarantee fund | 0.16% | |
| 88 | | Long-term employment | 0.16% | |
| 89 | | **Total employer** | **~2.09%** | |
| 90 | |
| 91 | ### Self-employed (individualios veiklos vykdytojas) |
| 92 | |
| 93 | | Contribution | Base | Rate | |
| 94 | |---|---|---| |
| 95 | | VSD (pension) | 90% of profit | 15.52% (or min on declared amount) | |
| 96 | | PSD (health) | 90% of profit | 6.98% | |
| 97 | |
| 98 | --- |
| 99 | |
| 100 | ## Section 4 — Non-taxable income amount (NPD) |
| 101 | |
| 102 | The non-taxable amount reduces tax for lower earners: |
| 103 | |
| 104 | | Annual employment income | Monthly NPD (2025) | |
| 105 | |---|---| |
| 106 | | Up to ~€840/month | Full NPD: **€747** | |
| 107 | | €840 – €2,167/month | Proportionally reduced | |
| 108 | | Over €2,167/month | NPD = €0 | |
| 109 | |
| 110 | Formula: `NPD = 747 − 0.5 × (monthly income − 840)` |
| 111 | |
| 112 | --- |
| 113 | |
| 114 | ## Section 5 — Deductions and credits |
| 115 | |
| 116 | | Deduction | Limit | Notes | |
| 117 | |---|---|---| |
| 118 | | Life insurance premiums | €2,000/year | Contracts 10+ years | |
| 119 | | Pension fund contributions (III pillar) | €2,000/year | Voluntary | |
| 120 | | Renovation of housing | 30% of expenses | Max €20,000 base | |
| 121 | | Charitable donations | Up to 1.2% of GPM can be redirected | Via declaration | |
| 122 | | Education expenses | Limited | Vocational/higher education | |
| 123 | |
| 124 | --- |
| 125 | |
| 126 | ## Section 6 — Computation method |
| 127 | |
| 128 | ### Employment income |
| 129 | |
| 130 | ``` |
| 131 | Step 1: Gross salary |
| 132 | Step 2: − Sodra employee (15.7%) |
| 133 | Step 3: = Taxable income |
| 134 | Step 4: − NPD (non-taxable amount, formula-based) |
| 135 | Step 5: = GPM base |
| 136 | Step 6: Apply 20% (or 32% above ceiling) |
| 137 | Step 7: = GPM amount |
| 138 | Step 8: Net salary = Gross − Sodra − GPM |
| 139 | ``` |
| 140 | |
| 141 | ### Individual activity |
| 142 | |
| 143 | ``` |
| 144 | Step 1: Gross revenue from activity |
| 145 | Step 2: − Documented expenses (or use 30% flat deduction) |
| 146 | Step 3: = Profit |
| 147 | Step 4: − VSD (15.52% on 90% of profit) |
| 148 | Step 5: − PSD (6.98% on 90% of profit) |
| 149 | Step 6: = Taxable income |
| 150 | Step 7: Apply 15% GPM |
| 151 | Step 8: = Tax due |
| 152 | ``` |
| 153 | |
| 154 | --- |
| 155 | |
| 156 | ## Section 7 — Worked example |
| 157 | |
| 158 | **Scenario:** Employee in Vilnius, monthly gross salary €3,000. No additional deductions. |
| 159 | |
| 160 | | Step | Monthly | Annual | |
| 161 | |---|---|---| |
| 162 | | Gross salary | 3,000 | 36,000 | |
| 163 | | − Sodra employee (15.7%) | (471) | (5,652) | |
| 164 | | Taxable before NPD | 2,529 | 30,348 | |
| 165 | | − NPD | 0 (income > €2,167) | 0 | |
| 166 | | GPM base | 2,529 | 30,348 | |
| 167 | | GPM at 20% | (505.80) | (6,069.60) | |
| 168 | | **Net salary** | **2,023.20** | **24,278.40** | |
| 169 | |
| 170 | Effective tax rate: (471 + 505.80) / 3,000 = **32.6%** (tax + social combined) |
| 171 | |
| 172 | --- |
| 173 | |
| 174 | ## Section 8 — Capital gains / Investment income |
| 175 | |
| 176 | Per `sarunas/income-tax-calculator` (MIT): |
| 177 | |
| 178 | | Event | Tax treatment | |
| 179 | |---|---| |
| 180 | | Sale of listed securities | 15% on gain (purchase price deductible) | |
| 181 | | Sale of real estate (owned < 10 years) | 15% on gain | |
| 182 | | Sale of real estate (owned ≥ 10 years, registered) | Exempt | |
| 183 | | Dividends from Lithuanian companies | 15% (withheld at source) | |
| 184 | | Interest from deposits | 15% (withheld by bank) | |
| 185 | |
| 186 | Annual exempt amount for securities gains: **€500** (gains below this are tax-free). |
| 187 | |
| 188 | --- |
| 189 | |
| 190 | ## Section 9 — Filing guidance |
| 191 | |
| 192 | ### Who must file? |
| 193 | |
| 194 | - All residents with income not fully taxed at source |
| 195 | - Self-employed / individual activity |
| 196 | - Capital gains recipients |
| 197 | - Those claiming deductions/credits |
| 198 | - Those redirecting 1.2% to charity |
| 199 | |
| 200 | ### Key dates |
| 201 | |
| 202 | | Event | Deadline | |
| 203 | |---|---| |
| 204 | | Tax year end | 31 December | |
| 205 | | Annual declaration deadline | 1 May | |
| 206 | | Payment deadline | 1 May | |
| 207 | | Employer monthly reporting | 15th of following month | |
| 208 | |
| 209 | ### Filing method |
| 210 | |
| 211 | - **deklaravimas.vmi.lt** — pre-filled annual return (most employed persons) |
| 212 | - VMI prepares preliminary declaration; taxpayer reviews and confirms |
| 213 | - Amendments possible within 5 years |
| 214 | |
| 215 | --- |
| 216 | |
| 217 | ## Section 10 — Conservative defaults |
| 218 | |
| 219 | | Situation | Conservative position | |
| 220 | |---|---| |
| 221 | | Income source unclear | Classify as employment (highest rate); flag | |
| 222 | | Individual activity expense documentation weak | Use 30% flat deduction only; flag | |
| 223 | | Capital gains holding period uncertain | Treat as < 10 years (taxable); flag | |
| 224 | | Foreign income | Include if Lithuanian tax resident; flag treaty | |
| 225 | | Crypto gains | Classify as capital gains 15%; flag | |
| 226 | |
| 227 | --- |
| 228 | |
| 229 | ## Section 11 — Sources |
| 230 | |
| 231 | | Source | URL | |
| 232 | |---|---| |
| 233 | | VMI (State Tax Inspectorate) | https://www.vmi.lt | |
| 234 | | Sodra (Social insurance) | https://www.sodra.lt | |
| 235 | | `sarunas/income-tax-calculator` (MIT) | https://github.com/sarunas/income-tax-calculator | |
| 236 | | GPM Law (Gyventojų pajamų mokesčio įstatymas) | Nr. IX-1007 | |
| 237 | |
| 238 | --- |
| 239 | |
| 240 | *OpenAccountants — open-source tax computation skills* |
| 241 | *This is not tax advice. All outputs must be reviewed by a qualified professional before filing.* |
| 242 |
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About
Use this skill whenever asked to prepare, review, or classify transactions for Lithuania Personal Income Tax (Gyventojų pajamų mokestis / GPM), annual return filing with VMI, or advise on Lithuanian income tax rates and Sodra contributions. Trigger on phrases like "GPM", "pajamų mokestis", "Lithuanian income tax", "VMI", "Sodra", or any Lithuania personal tax request. ALWAYS read this skill before touching any Lithuania PIT work.
LTty-2025
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