Lithuania Personal Income Tax (GPM) Skill v1.0
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Section 1 — Quick reference
| Field |
Value |
| Country |
Lietuvos Respublika (Republic of Lithuania) |
| Tax |
Gyventojų pajamų mokestis (GPM — Personal Income Tax) |
| Currency |
EUR (€) |
| Tax year |
Calendar year (1 Jan – 31 Dec) |
| Current tax year |
2025 |
| Tax authority |
VMI (Valstybinė mokesčių inspekcija — State Tax Inspectorate) |
| Filing portal |
https://deklaravimas.vmi.lt |
| Filing deadline |
1 May of following year |
| Source credit |
sarunas/income-tax-calculator (MIT, 21 stars) |
| Contributor |
Open Accountants Community |
| Validated by |
Pending — requires sign-off by a Lithuanian mokesčių konsultantas |
| Skill version |
1.0 |
Section 2 — Income tax rates (GPM tarifai) — 2025
Employment income (su darbo santykiais susijusios pajamos)
| Annual taxable income (EUR) |
Rate |
| Up to €108,480 (60 × average salary) |
20% |
| Over €108,480 |
32% |
Individual activity income (individualios veiklos pajamos)
| Type |
Rate |
| Business certificate (verslo liudijimas) |
Fixed patent fee |
| Individual activity (freelance) — on profit |
15% |
| Alternative: 5% on gross (if expenses not tracked) |
5% gross + VSD/PSD |
Capital income (kapitalo pajamos)
| Type |
Rate |
| Interest income |
15% |
| Dividends |
15% |
| Capital gains (securities, property) |
15% |
| Rental income (nuomos pajamos) |
15% (or 20% if registered activity) |
Other
| Type |
Rate |
| Lottery / gambling winnings > €3,000 |
15% |
| Foreign dividends |
15% |
Section 3 — Social insurance (Sodra) contributions
Employee (darbuotojas)
| Contribution |
Rate |
Cap |
| Pension (pensijų) |
8.72% |
No cap |
| Health (sveikatos) |
6.98% |
No cap |
| Total employee |
15.7% |
— |
Note: Additional voluntary pension (II/III pillar) — 2.7% or more (state co-finances).
Employer (darbdavys)
| Contribution |
Rate |
| Social insurance (VSD) |
1.77% |
| Guarantee fund |
0.16% |
| Long-term employment |
0.16% |
| Total employer |
~2.09% |
Self-employed (individualios veiklos vykdytojas)
| Contribution |
Base |
Rate |
| VSD (pension) |
90% of profit |
15.52% (or min on declared amount) |
| PSD (health) |
90% of profit |
6.98% |
Section 4 — Non-taxable income amount (NPD)
The non-taxable amount reduces tax for lower earners:
| Annual employment income |
Monthly NPD (2025) |
| Up to ~€840/month |
Full NPD: €747 |
| €840 – €2,167/month |
Proportionally reduced |
| Over €2,167/month |
NPD = €0 |
Formula: NPD = 747 − 0.5 × (monthly income − 840)
Section 5 — Deductions and credits
| Deduction |
Limit |
Notes |
| Life insurance premiums |
€2,000/year |
Contracts 10+ years |
| Pension fund contributions (III pillar) |
€2,000/year |
Voluntary |
| Renovation of housing |
30% of expenses |
Max €20,000 base |
| Charitable donations |
Up to 1.2% of GPM can be redirected |
Via declaration |
| Education expenses |
Limited |
Vocational/higher education |
Section 6 — Computation method
Employment income
Step 1: Gross salary
Step 2: − Sodra employee (15.7%)
Step 3: = Taxable income
Step 4: − NPD (non-taxable amount, formula-based)
Step 5: = GPM base
Step 6: Apply 20% (or 32% above ceiling)
Step 7: = GPM amount
Step 8: Net salary = Gross − Sodra − GPM
Individual activity
Step 1: Gross revenue from activity
Step 2: − Documented expenses (or use 30% flat deduction)
Step 3: = Profit
Step 4: − VSD (15.52% on 90% of profit)
Step 5: − PSD (6.98% on 90% of profit)
Step 6: = Taxable income
Step 7: Apply 15% GPM
Step 8: = Tax due
Section 7 — Worked example
Scenario: Employee in Vilnius, monthly gross salary €3,000. No additional deductions.
| Step |
Monthly |
Annual |
| Gross salary |
3,000 |
36,000 |
| − Sodra employee (15.7%) |
(471) |
(5,652) |
| Taxable before NPD |
2,529 |
30,348 |
| − NPD |
0 (income > €2,167) |
0 |
| GPM base |
2,529 |
30,348 |
| GPM at 20% |
(505.80) |
(6,069.60) |
| Net salary |
2,023.20 |
24,278.40 |
Effective tax rate: (471 + 505.80) / 3,000 = 32.6% (tax + social combined)
Section 8 — Capital gains / Investment income
Per sarunas/income-tax-calculator (MIT):
| Event |
Tax treatment |
| Sale of listed securities |
15% on gain (purchase price deductible) |
| Sale of real estate (owned < 10 years) |
15% on gain |
| Sale of real estate (owned ≥ 10 years, registered) |
Exempt |
| Dividends from Lithuanian companies |
15% (withheld at source) |
| Interest from deposits |
15% (withheld by bank) |
Annual exempt amount for securities gains: €500 (gains below this are tax-free).
Section 9 — Filing guidance
Who must file?
- All residents with income not fully taxed at source
- Self-employed / individual activity
- Capital gains recipients
- Those claiming deductions/credits
- Those redirecting 1.2% to charity
Key dates
| Event |
Deadline |
| Tax year end |
31 December |
| Annual declaration deadline |
1 May |
| Payment deadline |
1 May |
| Employer monthly reporting |
15th of following month |
Filing method
- deklaravimas.vmi.lt — pre-filled annual return (most employed persons)
- VMI prepares preliminary declaration; taxpayer reviews and confirms
- Amendments possible within 5 years
Section 10 — Conservative defaults
| Situation |
Conservative position |
| Income source unclear |
Classify as employment (highest rate); flag |
| Individual activity expense documentation weak |
Use 30% flat deduction only; flag |
| Capital gains holding period uncertain |
Treat as < 10 years (taxable); flag |
| Foreign income |
Include if Lithuanian tax resident; flag treaty |
| Crypto gains |
Classify as capital gains 15%; flag |
Section 11 — Sources
OpenAccountants — open-source accounting skills for AI
This is not tax advice. All outputs must be reviewed by a qualified professional before filing.
Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).
1---2name: lithuania-pit3description: 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.4license: AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (c5---67# Lithuania Personal Income Tax (GPM) Skill v1.089> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.1011---1213## Section 1 — Quick reference1415| Field | Value |16|---|---|17| Country | Lietuvos Respublika (Republic of Lithuania) |18| Tax | Gyventojų pajamų mokestis (GPM — Personal Income Tax) |19| Currency | EUR (€) |20| Tax year | Calendar year (1 Jan – 31 Dec) |21| Current tax year | 2025 |22| Tax authority | VMI (Valstybinė mokesčių inspekcija — State Tax Inspectorate) |23| Filing portal | https://deklaravimas.vmi.lt |24| Filing deadline | 1 May of following year |25| Source credit | `sarunas/income-tax-calculator` (MIT, 21 stars) |26| Contributor | Open Accountants Community |27| Validated by | Pending — requires sign-off by a Lithuanian mokesčių konsultantas |28| Skill version | 1.0 |2930---3132## Section 2 — Income tax rates (GPM tarifai) — 20253334### Employment income (su darbo santykiais susijusios pajamos)3536| Annual taxable income (EUR) | Rate |37|---|---|38| Up to €108,480 (60 × average salary) | **20%** |39| Over €108,480 | **32%** |4041### Individual activity income (individualios veiklos pajamos)4243| Type | Rate |44|---|---|45| Business certificate (verslo liudijimas) | Fixed patent fee |46| Individual activity (freelance) — on profit | **15%** |47| Alternative: 5% on gross (if expenses not tracked) | **5%** gross + VSD/PSD |4849### Capital income (kapitalo pajamos)5051| Type | Rate |52|---|---|53| Interest income | 15% |54| Dividends | 15% |55| Capital gains (securities, property) | 15% |56| Rental income (nuomos pajamos) | 15% (or 20% if registered activity) |5758### Other5960| Type | Rate |61|---|---|62| Lottery / gambling winnings > €3,000 | 15% |63| Foreign dividends | 15% |6465---6667## Section 3 — Social insurance (Sodra) contributions6869### Employee (darbuotojas)7071| Contribution | Rate | Cap |72|---|---|---|73| Pension (pensijų) | 8.72% | No cap |74| Health (sveikatos) | 6.98% | No cap |75| **Total employee** | **15.7%** | — |7677Note: Additional voluntary pension (II/III pillar) — 2.7% or more (state co-finances).7879### Employer (darbdavys)8081| Contribution | Rate |82|---|---|83| Social insurance (VSD) | 1.77% |84| Guarantee fund | 0.16% |85| Long-term employment | 0.16% |86| **Total employer** | **~2.09%** |8788### Self-employed (individualios veiklos vykdytojas)8990| Contribution | Base | Rate |91|---|---|---|92| VSD (pension) | 90% of profit | 15.52% (or min on declared amount) |93| PSD (health) | 90% of profit | 6.98% |9495---9697## Section 4 — Non-taxable income amount (NPD)9899The non-taxable amount reduces tax for lower earners:100101| Annual employment income | Monthly NPD (2025) |102|---|---|103| Up to ~€840/month | Full NPD: **€747** |104| €840 – €2,167/month | Proportionally reduced |105| Over €2,167/month | NPD = €0 |106107Formula: `NPD = 747 − 0.5 × (monthly income − 840)`108109---110111## Section 5 — Deductions and credits112113| Deduction | Limit | Notes |114|---|---|---|115| Life insurance premiums | €2,000/year | Contracts 10+ years |116| Pension fund contributions (III pillar) | €2,000/year | Voluntary |117| Renovation of housing | 30% of expenses | Max €20,000 base |118| Charitable donations | Up to 1.2% of GPM can be redirected | Via declaration |119| Education expenses | Limited | Vocational/higher education |120121---122123## Section 6 — Computation method124125### Employment income126127```128Step 1: Gross salary129Step 2: − Sodra employee (15.7%)130Step 3: = Taxable income131Step 4: − NPD (non-taxable amount, formula-based)132Step 5: = GPM base133Step 6: Apply 20% (or 32% above ceiling)134Step 7: = GPM amount135Step 8: Net salary = Gross − Sodra − GPM136```137138### Individual activity139140```141Step 1: Gross revenue from activity142Step 2: − Documented expenses (or use 30% flat deduction)143Step 3: = Profit144Step 4: − VSD (15.52% on 90% of profit)145Step 5: − PSD (6.98% on 90% of profit)146Step 6: = Taxable income147Step 7: Apply 15% GPM148Step 8: = Tax due149```150151---152153## Section 7 — Worked example154155**Scenario:** Employee in Vilnius, monthly gross salary €3,000. No additional deductions.156157| Step | Monthly | Annual |158|---|---|---|159| Gross salary | 3,000 | 36,000 |160| − Sodra employee (15.7%) | (471) | (5,652) |161| Taxable before NPD | 2,529 | 30,348 |162| − NPD | 0 (income > €2,167) | 0 |163| GPM base | 2,529 | 30,348 |164| GPM at 20% | (505.80) | (6,069.60) |165| **Net salary** | **2,023.20** | **24,278.40** |166167Effective tax rate: (471 + 505.80) / 3,000 = **32.6%** (tax + social combined)168169---170171## Section 8 — Capital gains / Investment income172173Per `sarunas/income-tax-calculator` (MIT):174175| Event | Tax treatment |176|---|---|177| Sale of listed securities | 15% on gain (purchase price deductible) |178| Sale of real estate (owned < 10 years) | 15% on gain |179| Sale of real estate (owned ≥ 10 years, registered) | Exempt |180| Dividends from Lithuanian companies | 15% (withheld at source) |181| Interest from deposits | 15% (withheld by bank) |182183Annual exempt amount for securities gains: **€500** (gains below this are tax-free).184185---186187## Section 9 — Filing guidance188189### Who must file?190191- All residents with income not fully taxed at source192- Self-employed / individual activity193- Capital gains recipients194- Those claiming deductions/credits195- Those redirecting 1.2% to charity196197### Key dates198199| Event | Deadline |200|---|---|201| Tax year end | 31 December |202| Annual declaration deadline | 1 May |203| Payment deadline | 1 May |204| Employer monthly reporting | 15th of following month |205206### Filing method207208- **deklaravimas.vmi.lt** — pre-filled annual return (most employed persons)209- VMI prepares preliminary declaration; taxpayer reviews and confirms210- Amendments possible within 5 years211212---213214## Section 10 — Conservative defaults215216| Situation | Conservative position |217|---|---|218| Income source unclear | Classify as employment (highest rate); flag |219| Individual activity expense documentation weak | Use 30% flat deduction only; flag |220| Capital gains holding period uncertain | Treat as < 10 years (taxable); flag |221| Foreign income | Include if Lithuanian tax resident; flag treaty |222| Crypto gains | Classify as capital gains 15%; flag |223224---225226## Section 11 — Sources227228| Source | URL |229|---|---|230| VMI (State Tax Inspectorate) | https://www.vmi.lt |231| Sodra (Social insurance) | https://www.sodra.lt |232| `sarunas/income-tax-calculator` (MIT) | https://github.com/sarunas/income-tax-calculator |233| GPM Law (Gyventojų pajamų mokesčio įstatymas) | Nr. IX-1007 |234235---236237*OpenAccountants — open-source accounting skills for AI*238*This is not tax advice. All outputs must be reviewed by a qualified professional before filing.*239240---241242_Source: [OpenAccountants](https://openaccountants.com/skills/lithuania-pit) — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: **source-cited draft**. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (`openaccountants-mcp`)._
openaccountants