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I am engaged in individual activities

  1. In order to pursue individual economic activities, you must apply to the State Tax Inspectorate (STI).
  2. The STI will issue you an individual activity certificate with which you will be able to perform individual activities within 5 business days after receiving your signed application.
  3. Upon submission of your application, STI will register you at the Taxpayer Register and provide “Sodra” with information about you as a policyholder.
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Individual activity - is an independent activity with which the resident seeks to receive income or other economic benefits during a continuous period. It could be:

  1. Independent commercial or industrial activities of any kind, except for the sale and / or rental of property, which is immovable by nature.
  2. Independent creative work, scientific, professional, including free professions, and other similar activities of a self-employed nature.
  3. Independent sports activities.
  4. Independent performer activity.
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Persons carrying out activities in accordance with an individual activity certificate are compulsorily insured:

  1. Pension.
  2. Sickness (disease) insurance.
  3. Maternity social insurance.
  4. Health insurance.
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Submission terms of SAV notification of declared income from which the state social insurance contributions are paid:

  • State social insurance contributions are paid in advance for the reporting month before the end of the month;
  • Annual state social insurance contributions are paid after the end of calendar year no later than within 10 business days by which the annual income statement must be submitted to State Tax Inspectorate (1 May of each year). Data on the annual amount of income arranged in months can also be submitted at State Tax Inspectorate by filling the annex of annual income statement GPM311C.

SAV notification must be submitted within specified time limits if state social insurance contributions may not be made in accordance with the procedure set forth by law (you receive an old-age or lost capacity (disability) pension, relief pension or compensation, carry out the activity for one year from the beginning of first activity, etc.), but you decide to pay them.

  If SAV notification or State Tax Inspectorate GPM311C annex is not submitted, the annual income amount from which state social insurance contributions are calculated and paid will be arranged in equal amounts for each month taking into account the periods of activity.

 

SAV notification is not required:

  • When the declared income from which the advance state social insurance contributions were paid is the same as declared annual income amount in State Tax Inspectorate from which the state social insurance contributions are calculated;
  • When the declared annual income amount from which the advance state social insurance contributions were paid is larger than income amount declared in State Tax Inspectorate from which the state social insurance contributions are calculated, and you will not apply regarding the repayment or set off of state social insurance contributions to future periods.
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Calculated contributions should be transferred to the “Sodra” payment collection accounts.

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.

Payment codes:

  • 292 - VSD.
  • 313 - PSD.
  • 343 - PSD (from the income received last year, and late payments).

 

  Important! If you are paying social security contributions for another person, do not forget to indicate the person for whom you pay contributions: Name, code (personal identification number), contribution code and amount payable. In most cases, electronic banking systems require the completion of “Initial payer” data in the payment of contributions for other persons.

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The contributions (payables) to “Sodra” are paid from the 90 percent of the taxable income from the individual economic activity (without deduction of State social insurance (VSD) and Compulsory health insurance (PSD).

 

VSD contributions rate:

  • 12,52 percent.
  • 14,62 percent if the person saves for a supplementary pension (2,1 percent);
  • 15,52 percent if the person saves for a supplementary pension (3 percent);

 

Payments cannot exceed specified limits:

A person involved in individual economic activities cannot pay contributions for more than a sum of 43 average salaries (hereinafter – VDU) – 53 380,20 Euro.

  • VSD - 6 683,20 Euro;
  • VSD - 7 804,19 Euro, if the person saves for a supplementary pension (2,1 percent);
  • VSD - 8 284,61 Euro, if the person saves for a supplementary pension (3 percent);
  • PSD - 3 725,94 Euro.

 

Deposits can be paid in advance (advance payments). Social security contributions calculated in advance are paid once a month, not later than the last day of the current month. Contributions are calculated and paid in advance on a voluntary basis.

At the end of a calendar year, if a person performing an individual economic activity has not provided “Sodra” SAV notifications or data on the annual amount of income for the previous year, arranged in months (GPM308 form) to the State Tax Inspectorate, as well as if he provided the SAV notifications, but the data provided in them does not match the data provided to the State Tax Inspectorate , unless, according to the data provided by the SAV reports, the amount of income declared to the state social insurance for the calendar year is higher than the annual income declared to the State Tax Inspectorate, from which the VSD contributions are calculated, and you will not address regarding the return of VSD contributions or accounting them for further periods, you must provide data on the annual amount of income for the previous year, set out in the months not later than within 10 business days from the day until which you should provide the STI with your annual income declaration. SAV notification is provided.

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The contributions (payables) to “Sodra” are paid from the 90 percent of the taxable income from the individual economic activity (without deduction of State social insurance (VSD) and Compulsory health insurance (PSD).

 

VSD contributions rate:

  • 12,52 percent.
  • 14,92 percent if the person saves for a supplementary pension (2,4 percent);
  • 15,52 percent if the person saves for a supplementary pension (3 percent);

 

Payments cannot exceed specified limits:

A person involved in individual economic activities cannot pay contributions for more than a sum of 43 average salaries (hereinafter – VDU) – 58 166,10 Euro.

  • VSD - 7 282,40 Euro;
  • VSD - 8 678,38 Euro, if the person saves for a supplementary pension (2,4 percent);
  • VSD - 9 027,38 Euro, if the person saves for a supplementary pension (3 percent).

 

Deposits can be paid in advance (advance payments). Social security contributions calculated in advance are paid once a month, not later than the last day of the current month. Contributions are calculated and paid in advance on a voluntary basis.

At the end of a calendar year, if a person performing an individual economic activity has not provided “Sodra” SAV notifications or data on the annual amount of income for the previous year, arranged in months (GPM311C form) to the State Tax Inspectorate, as well as if he provided the SAV notifications, but the data provided in them does not match the data provided to the State Tax Inspectorate , unless, according to the data provided by the SAV reports, the amount of income declared to the state social insurance for the calendar year is higher than the annual income declared to the State Tax Inspectorate, from which the VSD contributions are calculated, and you will not address regarding the return of VSD contributions or accounting them for further periods, you must provide data on the annual amount of income for the previous year, set out in the months not later than within 10 business days from the day until which you should provide the STI with your annual income declaration. SAV notification is provided.

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The Compulsory health insurance (PSD) size is 6,98 percent. It is calculated from the income, from which the social insurance contributions are calculated from, meaning – 90 percent of taxable income (without deducting VSD and PSD payables).

People engaged in individual economic activities have to pay a 6,98 percent PSD contribution from the minimal monthly salary until the last day of the current month. MMA is 607 Euro, therefore PSD payment size is 42,37 Euro (607 x 6,98 percent).

  Foreigners, who have temporary permission to live in Lithuania and are engaged in individual economic activities 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.

People engaged in individual economic activities may not pay PSD contributions on a monthly basis if health insurance contributions are paid by them or for them. This rule applies to persons working under an employment contract, civil servants, officials, pensioners, disabled persons and other persons named in parts 1, 2, 3, 5, 6, 7, 9 ir 10 of Article 17 and parts 4 of Article 6 of the Law on Health Insurance.

At the end of the calendar year, individuals engaged in individual economic activities must recalculate the PSD payables for the previous calendar year. The difference between the amounts of paid and payable PSD contributions must be paid before the last day of the submission of the annual income tax declaration to the State Tax Inspectorate (i.e., 1 May each year).

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The Compulsory health insurance (PSD) size is 6,98 percent. It is calculated from the income, from which the social insurance contributions are calculated from, meaning – 90 percent of taxable income (without deducting VSD and PSD payables).

People engaged in individual economic activities have to pay a 6,98 percent PSD contribution from the minimal monthly salary until the last day of the current month. MMA is 642 Euro, therefore PSD payment size is 44,81 Euro (642 x 6,98 percent).

At the end of the calendar year, no later than 1 May, the difference between the amount of the PSD contributions paid and payable shall be paid.  

Maximum PSD contribution – EUR 4 059,99.

 

  Foreigners, who have temporary permission to live in Lithuania and are engaged in individual economic activities 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.

People engaged in individual economic activities may not pay PSD contributions on a monthly basis if health insurance contributions are paid by them or for them. This rule applies to persons working under an employment contract, civil servants, officials, pensioners, disabled persons and other persons named in parts 1, 2, 3, 5, 6, 7, 9 ir 10 of Article 17 and parts 4 of Article 6 of the Law on Health Insurance.

At the end of the calendar year, individuals engaged in individual economic activities must recalculate the PSD payables for the previous calendar year. The difference between the amounts of paid and payable PSD contributions must be paid before the last day of the submission of the annual income tax declaration to the State Tax Inspectorate (i.e., 1 May each year).

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VSD contributions are free of charge (that period will not count towards seniority and person will not be considered as insured by VSD during that period) if

  • First self-employed activity from 01/01/2018. The start of the first activity shall be considered as the date on which the person becomes self-employed 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.

This provision shall also apply to persons who, after 1 January 2018, have not been self-employed during a period of at least ten years

  • Receive an old-age or lost work capacity pension;
  • Receive a benefit pension or social assistance compensation, with the exception of an orphan’s pension; 
  • Receive an old-age or invalidity pension from a social security relationship (social insurance) from another Member State of the European Union, the State of the European Economic Area, the Swiss Confederation or a country with which the Republic of Lithuania has concluded an international treaty on the application of social security; 
  • Are in places of imprisonment or in mental health care facilities;
  • Aged retirement age.
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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 info@sodra.lt (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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Payment of arrears for insurers that have been adversely affected due to the quarantine can be deferred under the simplified procedure, information of which can be found here (in Lithuanian).

 

Who can be subject to aid measures?

Aid measures apply to adversely affected insurers. An adversely affected insurer is an insurer whose activities are restricted because the quarantine has been announced in the territory of the Republic of Lithuania or the quarantine has been announced in the territory of the municipality, and if an insurer specifies in the prescribed application that he operates in this territory of the municipality, and:

  • who is automatically listed on the list Legal entities that are subject to tax aid measures due to COVID-19 without submitting an application that is published by the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania (hereinafter - the STI); or 
  • whose activities are included in the lists of individual activities carried out under an individual activity certificate or of business certificates for the implementation of which prohibitions/restrictions have been established, that are published by the STI; or
  • whose application for tax aid measures due to COVID-19 has been approved by the STI.

Insurers, having not found themselves among the published taxpayers, but having suffered adverse effects due to COVID-19, may apply to the tax administrator for the said aid measures by submitting an application for the application of selected aid measures.

In order to be subject to a simplified procedure of deferral of arrears payment from the moment of announcement of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality in which the insurer operates, an adversely affected insurer has to, within 10 days from the date of the end of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality where the insurer operates, submit to "Sodra", through the personal "Sodra" account of the insureran Application for deferral of arrears payment under the simplified procedure (in Lithuanian).

Log in to the personal "Sodra" account of an insurer and select in the menu bar Forms and Templates (Blanks) → Applications / complaints / additional information → Create new → DPP, 02 Application and attach as an attachment a completed Application for deferral of arrears payment under the simplified procedure (in Lithuanian), which does not need to be signed and scanned. Click the Sign button after having attached an application.

Self-employed persons, who do not have a qualified electronic signature, may submit a digital copy of an Application for deferral of arrears payment under the simplified procedure (in Lithuanian) by sending it by e-mail to skolu.atidejimas@sodra.lt.

If the insurer meets all requirements and satisfies all circumstances, the division of "Sodra" will take a decision within 20 working days from the receipt of application regarding deferral of arrears payment under the simplified procedure.

In taking a decision regarding deferral of payment of arrears,"Sodra" must apply for the registration of compulsory mortgage or compulsory pledge of the property of the adversely affected insurer if: 

  • until 16 March 2020 the insurer had arrears of social security contributions, fines, default interest, or interest;
  • the total deferred amount of arrears that have arisen during the period of the quarantine in the territory of the Republic of Lithuania and/or of the municipality in which the insurer operates and of previous arrears exceeds an amount of 30 thousand euros;
  • the insurer undertakes to cover the arrears within a period of more than 12 months from the end of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality in which the insurer operates.

Important!

  • "Sodra" has the right to take a decision to defer payment of arrears of adversely affected insurers notwithstanding the fact that one year has not elapsed since the moment when the debt deferral agreement previously concluded with the insurer was terminated due to violations and/or since the annulment of the decision to defer the payment of social security contributions after the insurer has violated the said decision.
  • "Sodra" has the right to take a decision to defer part of arrears until the end of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality in which the insurer operates for an adversely affected insurer, i.e. self-employed person, having applied an Application for deferral of arrears payment under the simplified procedure (in Lithuanian) whose deferred amount of arrears is not less than 125 EUR and does not exceed 1,500 EUR, if this deferred part of arrears has not been passed to a bailiff for enforcement, regardless of the fact that the other part of the arrears has been passed to a bailiff for enforcement.

If an adversely affected insurer does not apply for deferral of payment of arrears, but does not want enforced recovery of arrears to be initiated from the moment of announcement of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality in which the insurer operates, the insurer has to submit an Application not to apply coercive measures (in Lithuanian). Having receipt this application, "Sodra" does not apply new coercive measures to recover the arrears of the insurer, however, not longer than 10 days after the end of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality in which the insurer operates.

An Application not to apply coercive measures (in Lithuanian) can be submitted after having logged in to the personal "Sodra" account of the insurer and after having selected in the menu bar Forms and Templates (Blanks) → Applications / complaints / additional information → Create new – DPP, 02 Application and after having attached as an attachment a completed Application not to apply coercive measures (in Lithuanian), which does not need to be signed and scanned. Click the Sign button after having attached an application.

Self-employed persons, who do not have a qualified electronic signature, may submit a digital copy of an Application not to apply coercive measures (in Lithuanian) by sending it by e-mail to skolu.atidejimas@sodra.lt.

 

Whether interest will be charged?

No interest is charged for the deferral period of the payment of social security contributions, fines and default interest deferred under the simplified procedure.

During the period of the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality where the insurer, interest is not charged on amounts of social security contributions, fines and default interest deferred for adversely affected insurers, which have been deferred before the quarantine in the territory of the Republic of Lithuania and/or in the territory of the municipality where the insurer operates.

The procedure for deferral of payment of contributions by self-employed persons, when the amount of arrears does not exceed 1,500 EUR, remains unchanged.

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Update date: 2021-04-26
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