Insights of experts

On 20 of March 2023 Ministry of Finance of Lithuania revealed proposals on tax reform, to be submitted to Parliament early May, to enter into force from the year 2024 (if adopted). Below we summarize key aspects of the tax reform, relevant for the businesses.

The most relevant changes to the Labor Code of the Republic of Lithuania are for the attention of company managers, managing accounting persons and human resources managers. Some of them have already entered into force since 2022 July 1. We invite you to check what is relevant for both the employer and the employee and for general payroll accounting.

In the beginning of the year, several tax changes were introduced in Estonia, Latvia and Lithuania. Some of the changes will become effective in 2019. In addition we shall highlight tax rates applicable in the Baltics as of 2019.

Tax Reform in 2019

Social contribution changes from the 1st of July, 2018, applicable when employee is paid less than minimum monthly wage

Be informed, that changed procedures of daily allowance and other business travel expense compensation will come into force from the 1st of July, 2018 (in accordance with Government decree No. 523 as of 28/06/2017).

Approved final decision - from 2018 1st of January Minimum monthly wage is raised by 20 € - from 380 € to 400 €

Social security contributions changes from 2018

Approved final decision - from 2018 1st of January Minimum monthly wage is raised by 20 € - from 380 € to 400 €

The new General Data Protection Regulation will enter into force in May 2018.