im2.png

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.
Close

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.
Close

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.
Close

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 GPM308M.

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 GPM308M 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.
Close

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.

Close

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.
  • 14,32 percent if the person saves for a supplementary pension (1,8 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) – 48 856,60 Euro.

  • VSD - 6 116,85 Euro;
  • VSD - 6 996,27 Euro, if the person saves for a supplementary pension (1,8 percent);
  • VSD - 7 582,54 Euro, if the person saves for a supplementary pension (3 percent);
  • PSD - 3 410,19 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.

Close

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.

Close

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 555 Euro, therefore PSD payment size is 38,74 Euro (555 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).

Close

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).

Close

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 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 a pension or an invalidity 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.
Close

Self-employed persons who pay for social security contributions for themselves, on the payment of social security contributions up to a default payment of up to EUR 1 500, may apply to the “Sodra” section with the request to defer the payment of social security arrears. 
“Sodra” department shall, at the latest within 10 working days of receipt of the request, take a decision to defer or postpone the payment of the social security contributions. In this way, the payment of social security contributions may be delayed once per calendar year, subject to the following conditions: 

  • When social security contributions indebtedness is less than or equal to EUR 600, the social security contribution arrears are deferred to up to 4 months; 
  • In the case of social security contributions exceeding EUR 600 but less than or equal to EUR 900, up to a maximum of 6 months; 
  • In the case of social security contributions exceeding EUR 900 but less than or equal to EUR 1 200, up to a maximum of 8 months; 
  • When social security contributions indebtedness exceeds EUR 1 200, but is equal to or less than EUR 1 500, up to one year. 

The arrears of social security contributions start with repayment of the decision to defer payment of the social security arrears in accordance with the terms and conditions set out therein. The compartments shall inform the policyholder in writing of the decision taken within 5 working days of the decision. 
 
Persons may apply to the ‘Sodra’ department on deferral of contributions as soon as possible after the date on which the annual return declaration has to be submitted, i.e. after 1 May.

 

Important! 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.

Close

Please note that decisions on deferral of debt are taken by the simplified procedure until 14th September.

 

The most important aspects you need to address are:

  • Indebtedness exceeding EUR 1500

The first payment shall be made no later than 12 months after the date on which the request for deferral is made under the simplified procedure.

Final payment: not later than four years after the first instalment has been paid.

 

  • Self-employed persons whose debt deferral does not exceed EUR 1500

Amount of arrears, EUR

Period of deferral, month

Less than or equal to 600

Up to 4

Greater than 600 but less than or equal to 900

Up to 6

Greater than 900 but less than or equal to 1200

Up to 8

Greater than 1200 but less than or equal to 1500

Up to 12

 

The decision shall not take into account the fact that one year has not elapsed since the cancellation of the debt deferral agreement previously concluded with the policyholder and terminated due to violations and/or the decision to defer the payment of social insurance contributions in case of violation of the said decision by the policyholder.

 

  • No interest is calculated

From deferred social insurance contributions, fees and late payment interest on applications for deferral of debt submitted from 16 March 2020 to 17 August 2020.

 

  • No interest is calculated from 1 March 2020 until 17 August 2020

From deferred social insurance contributions, fees and late payment interest which have been deferred until the declaration of quarantine.

 

  • When taking a decision on the deferment of payment of arrears, "Sodra" must apply for registration of compulsory mortgage or forced pledge of the insurer’s property if:
    • Prior to the declaration of quarantine, the insurer was indebted to social security contributions, fines, late payment interest, interest;
    • The total amount of previous arrears and arrears incurred during quarantine exceeds the amount of EUR 30.000;
    • The policyholder shall undertake to cover the arrears within a period of more than 12 months from the date of termination of the quarantine.
Close
Update date: 2020-08-20
Is the information useful?

Can not find what you are looking for? Choose the most suitable option for getting information.