Tax changes in Lithuania 2022


From 01.01.2022, the minimum monthly salary is increased to EUR 730 (it was EUR 642) and the minimum hourly wage to EUR 4.47 (it was EUR 3.93).

As a result of the changed minimum monthly salary, the “floor” of social contributions has changed, i. the minimum amount from which the social contributions must be paid per month is EUR 730, regardless of how many hours per month the employee works. The exceptions allowing contributions to be paid from a lower amount have not changed.

Check to see if you need to adjust your employment contracts. Relevant if:

a) the minimum monthly salary specified in the employment contract is less than EUR 730,

b) if the remuneration set for a qualified employee after this change does not exceed EUR 730.


Business trips allowances

Due to the change in the minimum monthly salary, the amounts of tax-free daily allowances for business trips abroad will also change. From 01.01.2022, daily allowances will not be taxed if the monthly salary is not less than EUR 1204.50 (EUR 730 x 1.65).

Check to see if you need to adjust your employment contracts.


Limits on taxable income

As of 01.01.2022, a new average salary has been established for the calculation of personal income tax and social contributions, i. EUR 1504.10.

As a result, the “ceiling” will change – the limit when social contributions are no longer calculated, this limit increases from EUR 81,162 to EUR 90,246 (60 * EUR 1504.10).


Non-taxable income (NPD)

From 01.01.2022, the amount of non-taxable income (NPD) increases to EUR 460 (was EUR 400) and the calculation of the applicable NPD is changed.

The higher NPD will apply only to persons earning up to EUR 1,678 per month. For those earning more, the application of the NPD will not change and will be calculated as in 2021.

These changes mean that those who earn a salary that does not exceed EUR 1,678 will receive a higher net salary. The increase will depend on the amount of salary and will be from EUR 2 to 66 / per month.


Pension contributions

Contributions to the supplementary pension scheme increased from 2.4% to 2.7%. For participants who have been subject to a 3% fee, it does not change.


Inventory accounting

From 01.05.2022, the requirement to use the FIFO inventory accounting method for calculating income tax shall be abolished. The cost of goods sold, allowable deductions, will be recognized using the same accounting policy as the entity uses.



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