FAQ
Lithuania

In Lithuania there are 3 tax rates:

• 20% individual income tax rate if the annual income does not exceed 60 times the average wage in Lithuania,
• 35% individual income tax rate if the annual income exceeds 60 times the average wage,
• 15% tax rate applies to legal entities.

The Pažyma form is a form that every employer must give to his employees by the end of January of the following year. It is a confirmation of the employee's annual income and the tax withheld from each month's wages for the previous calendar year.

You can claim your Lithuanian tax refund up to 5 years back.

In the year 2024 you can file the tax return / claim your tax refund for the year 2019 at the latest.

Deadlines for getting Lithuanian tax refund for previous years:

• tax return for the year 2019 - till the 2nd of May, 2024
• tax return for the year 2020 - till the 2nd of May, 2025
• tax return for the year 2021 - till the 2nd of May, 2026
• tax return for the year 2022 - till the 2nd of May, 2027
• tax return for the year 2023 - till the 2nd of May, 2028

If you fail to pay the tax by the deadline, the tax office will charge you late payment interest in the amount of 0.03% from the amounts due for each day of delay.

If you fail to file a tax return, the tax office will charge a penalty of between 10% and 50% of the estimated tax. You will also receive a penalty of 50-100% if you cannot prove the origin of your income during the tax audit.

The tax office will process the filed tax return and then pay the overpayment. The whole process takes on average 2-10 months from the time the tax return was filed.

Deadline for filing the tax return for the previous year is 2nd of May, this means that for the year 2023 it is necessary to file the tax return till the 2nd of May, 2024.

PD U1 form (Confirmation of periods to be taken into account for unemployment benefits) is a confirmation of employment abroad during which your employer paid unemployment insurance contributions on your behalf.

The form is issued by the foreign employment office after the employment termination and is submitted to the employment office in your home country or the country where you are claiming unemployment benefits.

You will need to present this document when you return from abroad to your home country or another EU country to claim unemployment benefits.

To obtain a U1 form, you will need the following documents:

• Power of Attorney (obtained from us),
• payslips or an annual income certificate Pažyma,
• all employment contracts for the given period,
• all employment termination certificates for the given period,
• employment certificates confirmed by the employer (if employment is still ongoing),
• insurance certificates,
• sickness benefit certificate (if you have received one),
• maternity benefits certificate (if you have received them).

We are able to help you obtain these documents from Lithuania:

• Pažyma: certificate of taxable incomes,
• U1: it proves the entitlement to unemployment benefits after your return from abroad,
• S1: it entitles the taxpayer to use the full health care in the home country while working in different country in the EU.

In addition, we can help you obtain an EWR form to give you unlimited taxpayer status. This will enable you to claim a refund and qualify for various other tax reliefs.

The Pažyma form is a form that every employer must give to their employees. It is a statement of the employee's annual income and the tax withheld from each month's wages for the previous calendar year.

To obtain a Pažyma form, you have to contact your employer and ask them to issue the form for you. If you had more than one employer, you will need a Pažyma form from each of them.