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I am a individual enterprise owner

  • If you have registered an individual enterprise in the legal entity register, you are registered as a policyholder in the register of taxpayers. The State Tax Inspectorate transfers data to “Sodra”.
  • As the owner of an individual business you have the following compulsory insurance according to the order, provided for in the laws:
  1. Pension.
  2. Sickness (disease) insurance.
  3. Maternity social insurance.
  4. Unemployment social insurance.
  5. Compulsory health insurance.
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SAV notification on a self-employed person

Information to “Sodra” on a self-employed person (SAV notifications) are submitted in the personal “Sodra” account for the insurant. The path:

www.sodra.lt – Log in – For the insurant / employer – Forms and Templates (Blanks) – Create new – SAV, notification on income from self-employment.

The notifications can be submitted in 2 ways, depending on the payment of contributions of the person pursuing the activities:

1st way:

  • If you pay the contributions for the current year (in advance) for at least one month. SAV notification shall be submitted by the 15th day of the next month.

For example, if you pay the contributions for January 2022, SAV notification must be submitted by 15 February 2022.

Pay attention! The SAV notification must indicate the amount of funds withdrawn for personal needs, from which the contributions are calculated (50%).

It’s important! It is not required to submit a SAV notification if contributions for the current month are calculated and paid from the minimum monthly salary.

If you decide to pay contributions on a monthly basis and submit a SAV notification by the 15th of the following month (without waiting for the income tax return deadline, i.e. 1 May of the following year), you will be able to receive benefits immediately after the end of your incapacity for work. Also, in this case, it would be assessed whether you have paid state social insurance contributions for the previous month and whether you have the required length of sickness insurance.

2nd way:

  • If you pay contributions once a year, for the previous year, the data on the annual amounts of income declared by the self-employed person and the breakdown of these amounts by calendar month shall be provided to the STI, in the annual income declaration GPM311, by choosing the contribution type “SoDros mėnesinis”.

If you declare the total annual income but do not declare the amounts of income received in calendar months, your annual income from which contributions are calculated will be divided equally according to the number of calendar days in each month of the activity period and the contributions paid.

It’s important! If you choose to pay your contributions to “Sodra” only once a year, “Sodra” may only pay your benefits after you have declared your income to the STI and paid your due contributions.

If you want to distribute your income differently:

  • Submit an annual income declaration to the STI GPM311 and choose the type of contributions “SoDros mėnesinis”.
  • Submit the SAV notification, but only if you have not submitted data to the VMI for the same previous period.

Pay attention! When contributions have been paid during the current calendar year by the deadlines set in the Law on the VSD, but no SAV notifications have been submitted, the annual SAV notification may be submitted regardless of the amount of income declared or withdrawn for personal needs would have to pay fewer contributions and the person would not apply for a refund or set-off of social security contributions. If you were entitled not to pay contributions but you have paid contributions, you can also submit a SAV report.

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SD contributions rate:

  • 13,83 percent;
  • 15,93  percent if the person saves for a pension (2,1 percent);
  • 16,83  percent if the person saves for a pension (3 percent).

 

PSD contributions rate:

  • 6,98 percent from the minimal monthly salary (MMA). In 2020 - 42,37 Eur (607 Eur x 6,98 percent).

 

Contribution base (the sum payables are calculated from).

The individual enterprise owner’s social insurance contributions base consists of a 50 percent of total fundstaken out by the owner of the individual enterprise from the individual enterprise for his own personal needs, which is declared to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania as income related to working relations or relations compatible to the essence of working relations.

 

Annual Contributions cannot be calculated from a sum larger than a sum of 43 average salaries (hereinafter – VDU) – 53 380,20 Euro.

  • Maximum VSD contribution – 7 382,48 Euro;
  • Maximum VSD contribution – 8 503,47 Euro, if person saves for a pension (2,1 percent);
  • Maximum VSD contribution – 8 983,89 Euro, if person saves for a pension (3 percent);
  • Maximum PSD contribution – 3 725,94 Euro.

 

Annual PSD contributions cannot be calculated from a sum less than 12 minimal monthly salaries:

  • Minimal annual PSD contribution – 508,44 Euro.
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SD contributions rate:

  • 13,83 percent;
  • 15,93  percent if the person saves for a pension (2,1 percent);
  • 16,83  percent if the person saves for a pension (3 percent).

 

PSD contributions rate:

  • 6,98 percent from the minimal monthly salary (MMA). In 2021 - 44,81 Eur (642 Eur x 6,98 percent).

 

Contribution base (the sum payables are calculated from).

The individual enterprise owner’s social insurance contributions base consists of a 50 percent of total fundstaken out by the owner of the individual enterprise from the individual enterprise for his own personal needs, which is declared to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania as income related to working relations or relations compatible to the essence of working relations.

 

Annual Contributions cannot be calculated from a sum larger than a sum of 43 average salaries (hereinafter – VDU) – 58 166,10 Euro.

  • Maximum VSD contribution – 8 044,37 Euro;
  • Maximum VSD contribution – 9 440,36 Euro, if person saves for a pension (2,4 percent);
  • Maximum VSD contribution – 9 789,35 Euro, if person saves for a pension (3 percent);
  • Maximum PSD contribution – 4 059,99 Euro.

 

Annual PSD contributions cannot be calculated from a sum less than 12 minimal monthly salaries:

  • Minimal annual PSD contribution – 537,74 Euro.
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SD contributions rate:

  • 13,83 percent;
  • 16,53  percent if the person saves for a pension (2,7 percent);
  • 16,83  percent if the person saves for a pension (3 percent).

 

PSD contributions rate:

  • 6,98 percent from the minimal monthly salary (MMA). In 2022 - 50.95 Eur (730 Eur x 6,98 percent).

 

Contribution base (the sum payables are calculated from).

The individual enterprise owner’s social insurance contributions base consists of a 50 percent of total fundstaken out by the owner of the individual enterprise from the individual enterprise for his own personal needs, which is declared to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania as income related to working relations or relations compatible to the essence of working relations.

 

Annual Contributions cannot be calculated from a sum larger than a sum of 43 average salaries (hereinafter – VDU) – 64 676,30 Euro.

  • Maximum VSD contribution – 8 944,73 Euro;
  • Maximum VSD contribution – 10 690,99 Euro, if person saves for a pension (2,7 percent);
  • Maximum VSD contribution – 10 885,02 Euro, if person saves for a pension (3 percent);
  • Maximum PSD contribution – 4 514,30 Euro.

 

Annual PSD contributions cannot be calculated from a sum less than 12 minimal monthly salaries:

  • Minimal annual PSD contribution – 611,45 Euro.
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Both VSD and PSD contributions for the current month should be paid not later than up to the last day of that month.

For example, you have to pay contributions for January 2022 until 31 January 2022.

Foreigners, who have temporary permission to live in Lithuania and are owners of an individual enterprise are highly recommended to pay compulsory health insurance contributions in advance. For example, contribution for the month of September must be paid until the 31st of August. This is important because compulsory health insurance is valid only if contributions for the current month are paid.

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Calculated contributions are paid into the “Sodra” payment collection accounts. When transferring money, pay attention to the procedure of creating payment orders.

It is mandatory to specify the payment code while transferring the payables. The payment can “get lost” and not accounted for if you do not provide the code - the payer will have a debt with interest calculated.

VSD payment codes:

  • Current contributions - 310.
  • Interest for late payments - 311.
  • Fines for unlawfully reduced contributions- 312.

 

PSD payment codes:

  • Current contributions - 322.
  • From the income received last year and payment of debts - 340.
  • Interest for late contributions - 341.
  • Fines - 342.
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Individual enterprise owners may not pay social insurance contributions for one year from the start of their first activity. The start of the first activity is the day the person becomes a self-employed person for the first time after 1 January 2018. This means that the person must have not carried out any independent activity before 1 January 2018 and that his first selfemployed activity started after 1 January 2018.

For example, if a person had acquired a business certificate between 1 October 2017 and 15 October 2017 and became a second selfemployed person after 1 January 2018, then he needs to pay DHS contributions because this is not the first self-employed activity.

PSD contributions should not be paid if the owner is already covered by compulsory health insurance.

 

In cases, funds are not taken out for personal needs:

  1. VSD contributions should not be paid.
  2. PSD contributions should not be paid if the owner is already insured by the compulsory health insurance.

 

In cases, the funds are taken out for personal needs:

VSD and PSD contributions should be paid with the exception of cases when the individual enterprise owner complies with at least one of the following conditions:

  • The owner is granted old-age or lost working capacity (disability) pension in Lithuania or any other European Union member state.
  • In case the owner has reached social insurance old-age pension age according to the Law on State social insurance pension (PSD contributions may not be paid if the owner is insured by compulsory health insurance).
  • In case the owner is at the place of imprisonment or has been assigned with measures of forced medical observation or educational remedy measures in a specialized mental health care institution.

Important! If you decide not to pay VSD contributions in the first year of self-employment:

  • It is not necessary to inform "Sodra" about it;
  • During this period, you will not accumulate seniority for old-age pensions, as well as sickness, maternity, childcare, etc. to receive benefits.

 

I cannot pay contributions

You can postpone the payment of contributions. You need to:

  1. Provide an application to the “Sodra” department (the recovery of insurance contribution debt is stopped at the day you provide the request with all needed documents);
  2. A “Sodra” department will examine your application in 20 business days and will send you a notification with its decision. If postponing of the payment has been approved, you need to come to the “Sodra” department during a 10 business day period and conclude a debt payment postponement agreement.

 

  If your debt exceeds 1500 Euro, the decision is made in 3 business days from providing the application. The notification of the decision will be sent to you in 5 business after the decision has been made.

  In case your contribution debt payment is postponed, but you fail to execute the conditions of the agreement or fail to pay current payments, the agreement is terminated, the remaining debt is recovered and due interest is calculated.

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Yesif:

  • Your arrears of the social insurance contributions are not less than EUR 125 and do not exceed EUR 1,500;
  • You submit an Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian) to “Sodra”.

No, if recovery of arrears of the social insurance contributions has already been delegated to the bailiff.

 

CONDITIONS OF DEFERRAL

Amount of arrears, EUR

Term of deferral, months

Less or equal to 600

Up to 4

Greater than 600 but equal to or less than 900

Up to 6

Greater than 900 but equal to or less than 1,200

Up to 8

Greater than 1,200 but equal to or less than 1,500

Up to 12

 

TERMS:

  • Individuals may apply to “Sodra” division for the deferral of the contributions immediately after the date by which the annual income tax return must be submitted to the STI, i.e. after May 1.
  • Payment of arrears of the social insurance contributions can be deferred once per calendar year.
  • If your arears do not exceed EUR 1,500, “Sodra“ shall adopt the decision within 10 working days from the date of receipt of the application at “Sodra“ division.
  •  “Sodra“ division shall notify the insurant on the decision adopted within 5 working days from the date of the decision, submitting the decision to the personal "Sodra" account for the resident and policyholder.
  • The repayment of arrears of the social insurance contributions begins from the date of the decision to defer the payment of arrears of the social insurance contributions subject to the terms and conditions set out therein.

An Application for the deferral of contributions (contributions, interest, fines) may be submitted:

  • Online after logging to the "Sodra" personal account for the resident and selecting a free-form application and attaching a completed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian). The addressee must be chosen the branch of "Sodra" where you are registered as a policyholder;
  • By e-mail [email protected] (it is necessary to attach a completed and signed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian));
  • By mail. The completed and signed original application is sent to the branch of "Sodra" where you are a registered as a policyholder;
  • Upon arrival at the "Sodra" branch. You need to have an identity document with you, e.g. passport, identity card.

Important! If payment of the contributions debt has been deferred for you, but you fail to fulfil the terms of the agreement or fail to pay the current contributions, the agreement shall be terminated and the remaining debt and accrued interest on late payment are recovered. 

 

 Important due to extreme situation and quarantine period!

  • Self-employed persons may not pay compulsory health insurance (CHI) contributions during an emergency and quarantine period and defer their payment for 2 years.
  • These persons who have not paid CHI contributions during an emergency declared by the Government and during quarantine will be required to pay these contributions for the said period within 2 years from the day of the emergency and quarantine cancellation.
  • If self-employed persons fail to pay CHI contributions within the set time limit when they have been provided with personal health care services within the set time limit, they will be required to compensate for the damage caused to the budget of the CHI Fund.
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  • If the VSD contributions are calculated and paid from the MMA (730€), the period of one month shall be included in that case.
  • If the VSD contributions are calculated and paid from an amount smaller than the MMA (730€), in which case a proportionally smaller part of the length of service shall be included.
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Update date: 2022-02-23
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