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I am a partner of general partnership

If you have established a general partnership and registered it in the Register of Legal Entities, you as the insurer are registered in the Taxpayers Register (STI). The State Tax Inspectorate sends data to the "Sodra".

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Partners of general partnership are classified as self-employed and compulsorily insured under:

  1. pension;
  2. sickness;
  3. maternity;
  4. unemployment social insurance;
  5. health insurance.
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  • After the end of the calendar month before the 15th day of the next month, a partner of general partnership must submit the SAV notification on self-employed persons to the "Sodra", when the general partner of general partnership withdraws the amount of funds related to employment relationships from the general partnership for personal needs during the calendar month.

 Important! SAV notification must indicate the whole amount of funds withdrawn by the partner of general partnership for personal needs from which contributions are deducted.

  • At the end of the calendar year, persons who have not submitted SAV notifications on a monthly basis or who have submitted SAV notifications, but the data submitted do not match the annual tax return submitted to the State Tax Inspectorate, except for the cases when according to the submitted monthly SAV notifications, the amount of funds withdrawn for personal needs for a calendar year exceeds the amount of funds withdrawn for personal needs declared by STI and the person does not apply for repayment or credit of social insurance contributions for future periods, must provide data on the annual income of the previous year; this information is provided to the  "Sodra" department by completing the SAV notification.

  You must submit the SAV notification not later than within 10 working days from the day on which the tax return was to be submitted to the STI (i.e., on the 1st of May of each year).

The SAV notification must also be submitted if the self-employed person cannot pay social insurance contributions for one year from the first start-up, but he pays them.

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  • In 2019, partners of general partnerships should pay state social insurance contributions from 50 per cent of the amount of funds withdrawn for personal needs, which is declared to the State Tax Inspectorate as income from employment relationship or another type of relationship equivalent to employment (income code 02).
  • If the funds for personal needs (income code 02) will not be withdrawn, you will not need to pay state social insurance contributions. The state social insurance contributions can not be paid, even if these funds will be withdrawn for personal needs (this period will not be included in the social insurance record) if:
    • the first independent activity for a partner of general partnership since 1 January 2019;
    • a partner of general partnership receives the social insurance old-age or social insurance work incapacity (invalidity) pension (is appointed to them);
    • a partner of general partnership receives the social assistance pension or social assistance compensation, with the exception of the orphan’s social assistance pension;
    • a partner of general partnership receives the old-age pension from an EU Member State;
    • a partner of general partnership is in imprisonment institutions, specialised mental health care institutions;
    • a partner of general partnership has attained the pensionable age for a social insurance old-age pension.

 

State social insurance contribution rates

  • 13,83 percent;
  • 15,63 percent, if a partner of small partnership participates in the supplementary accumulation of pensions (1,8 percent);
  • 16,83 percent, if a partner of small partnership participates in the supplementary accumulation of pensions (3 percent).

 

Compulsory health insurance contribution rates:

  • 6,98 percent. They are calculated on the same base as state social insurance contributions.

The annual amount of health insurance contribution of partner of limited partnerships, except persons listed in the Article 17 (1, 5, 7) and Article 6(4) of the Law on Health and Article 4(4) of the Law on State Social Insurance (for example, they are employed under employment contracts, are insured under health insurance with state funds and etc.), may not be less than 6,98 per cent of 12 minimum monthly salaries that were valid each month of that particular year.

Therefore, the limited partnership must pay compulsory health insurance contributions not less than 6,98 percent of the minimum monthly salary for such partners every month, not later than the last day of the current month. A monthly compulsory health insurance contribution is 38,74 Euro (6,98 per cent X 555 Euro).

 

Ceiling of contributions

Contributions are calculated on the amount of income not exceeding 43 average salaries per year (48 856,60 Eur.):

  • Maximum state social insurance contribution is 6 756,87 Euro.
  • Maximum state social insurance contribution (when a pension is accumulated voluntarily 1,8 percent) is 7 436,29 Euro.
  • Maximum state social insurance contribution (when a pension is accumulated voluntarily 3 percent) is 8 222,57 Euro.
  • Maximum compulsory health insurance contribution is 3 410,19 Euro.

  • If the general partnership does not temporarily exercise its activities and has informed the STI or has the status of a liquidated or bankrupt company, partners of the partnership must pay compulsory health insurance contributions by themselves, 9 per cent of the minimum monthly salary. This does not apply if partners belong to persons listed in the Article 17(2 - 5 and 7 - 10) or Article 6(4) of the Law on Health Insurance.
  • If the general partnership does not exercise its activity and declares it, the aforementioned provisions of the law are not applied and partners of such partnerships do not need to pay contributions.
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  • In 2020, partners of general partnerships should pay state social insurance contributions from 50 per cent of the amount of funds withdrawn for personal needs, which is declared to the State Tax Inspectorate as income from employment relationship or another type of relationship equivalent to employment (income code 02).
  • If the funds for personal needs (income code 02) will not be withdrawn, you will not need to pay state social insurance contributions. The state social insurance contributions can not be paid, even if these funds will be withdrawn for personal needs (this period will not be included in the social insurance record) if:
    • the first independent activity for a partner of general partnership since 1 January 2020;
    • a partner of general partnership receives the social insurance old-age or social insurance work incapacity (invalidity) pension (is appointed to them);
    • a partner of general partnership receives the social assistance pension or social assistance compensation, with the exception of the orphan’s social assistance pension;
    • a partner of general partnership receives the old-age pension from an EU Member State;
    • a partner of general partnership is in imprisonment institutions, specialised mental health care institutions;
    • a partner of general partnership has attained the pensionable age for a social insurance old-age pension.

 

State social insurance contribution rates

  • 13,83 percent;
  • 15,93 percent, if a partner of small partnership participates in the supplementary accumulation of pensions (2,1 percent);
  • 16,83 percent, if a partner of small partnership participates in the supplementary accumulation of pensions (3 percent).

 

Compulsory health insurance contribution rates:

  • 6,98 percent. They are calculated on the same base as state social insurance contributions.
  • The annual amount of health insurance contribution of partner of limited partnerships, except persons listed in the Article 17 (1, 5, 7) and Article 6(4) of the Law on Health and Article 4(4) of the Law on State Social Insurance (for example, they are employed under employment contracts, are insured under health insurance with state funds and etc.), may not be less than 6,98 per cent of 12 minimum monthly salaries that were valid each month of that particular year.

    Therefore, the limited partnership must pay compulsory health insurance contributions not less than 6,98 percent of the minimum monthly salary for such partners every month, not later than the last day of the current month. A monthly compulsory health insurance contribution is 42,37 Euro (6,98 per cent X 607 Euro).

     

    Ceiling of contributions

    Contributions are calculated on the amount of income not exceeding 43 average salaries per year (53 380,20 Eur.):

  • Maximum state social insurance contribution is 7 382,48  Euro.
  • Maximum state social insurance contribution (when a pension is accumulated voluntarily 2,1 percent) is 8 503,47 Euro.
  • Maximum state social insurance contribution (when a pension is accumulated voluntarily 3 percent) is 8 983,89 Euro.
  • Maximum compulsory health insurance contribution is 3 725,94 Euro.

  • If the general partnership does not temporarily exercise its activities and has informed the STI or has the status of a liquidated or bankrupt company, partners of the partnership must pay compulsory health insurance contributions by themselves, 9 per cent of the minimum monthly salary. This does not apply if partners belong to persons listed in the Article 17(2 - 5 and 7 - 10) or Article 6(4) of the Law on Health Insurance.
  • If the general partnership does not exercise its activity and declares it, the aforementioned provisions of the law are not applied and partners of such partnerships do not need to pay contributions.
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  You must pay the state social insurance and compulsory health insurance contributions for the current month by the end of the current month.

  For example, a contribution for January 2020 has to be paid by 31 January 2020.

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Estimated contributions are paid into the "Sodra" bank accounts.

  When paying contributions, it is mandatory to specify the contribution code. Without specifying the code, the contribution may "get lost" and will not be charged, and the payer will be charged with a debt and late fees will be calculated.

  Important! If you pay late fees or fines for state social insurance contributions, their code differ.

 

State social insurance contribution codes:

  1. Current contributions – 310. 
  2. When you pay late fees – 311.
  3. When you pay fines – 312.

 

Compulsory health insurance contribution codes:

  1. Current contributions – 322.
  2. Compulsory health insurance from income received last year and debt code – 340.
  3. When you pay late fees – 341.
  4. When you pay fines - 342.
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  It is obligatory to pay to the "Sodra", but the exemptions are applied.

  • In 2020, the base of social insurance contributions during the calendar year in calculating state social insurance contributions cannot exceed the amount of 43 average state salaries of the previous year (53 380,20 Eur).

 

A partner of general partnerships may not pay compulsory health insurance on a monthly basis if a partner of general partnerships does not withdraws funds for their personal needs and a partner of general partnership is classified as persons listed in the Article 17 (1, 5, 7) and Article 6(4) of the Law on Health and Article 4(4) of the Law on State Social Insurance.

 

A person may not pay SSI contributions (this period will not be included in the record of insurance and will not be considered as insured by the SSI during this period) if: 

  • it is the first independent activity since 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 (have been awarded) a pension or lost work capacity (invalidity) pension; 
  • receive a social assistance pension or benefit compensation, with the exception of the orphan’s social assistance pension; 
  • receives the old-age or lost work capacity (invalidity) pension related to social insurance relations from another EU Member State, a state of the European Economic Area, the Swiss Confederation or a country with which the Republic of Lithuania has concluded an international agreement on social security; 
  • are in places of imprisonment, mental health care institutions; 
  • has attained old-age retirement age. 

 

CHI contributions may not be paid by persons who: 

  • receive (have been awarded) a pension or lost work capacity (invalidity) pension; 
  • receive a social assistance pension or benefit compensation, with the exception of the orphan’s social assistance pension; 
  • receives the old-age or lost work capacity (invalidity) pension related to social insurance relations from another EU Member State, a state of the European Economic Area, the Swiss Confederation or a country with which the Republic of Lithuania has concluded an international agreement on social security; 
  • are in places of imprisonment, mental health care institutions;  
  • has attained old-age retirement age.
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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.

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Update date: 2020-05-12
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