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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.

This means that when you pay state social insurance contributions, you accumulate seniority for an old-age pension and become entitled to sickness, maternity, paternity, etc. benefits. 

The payment of compulsory health insurance contributions guarantees you free access to health care services, reimbursement of the costs of the services provided, medicines and medical supplies.

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You must submit a SAV notification on a self-employed

Information to “Sodra” about self-employed person (SAV notification) is provided in the personal “Sodra” account for the policyholder:  Forms and Templates → Create a new → SAV, notification on self-employment income.

Notifications can be submitted in 2 ways, depending on the frequency of contributions paid by the person carrying out the activity:

Option 1:

If you pay for the current month (in advance), at least one month per year:

In this case, the SAV notification shall be submitted by the 15th day of the following month.

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.

For example, for February 2022, the SAV notification must be submitted by 15 March 2022.

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.

Option 2:

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”.

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.

Once the total annual amount of revenue has been declared, but if you do not declare the amounts of revenue received during the calendar months, your annual amount of revenue from which contributions are calculated will be set out in equal instalments, depending on the number of calendar days of each month of the activity and the contributions paid.

If you want to distribute your income differently, in this case, please submit an annual income declaration to the STI GPM311 and choose the type of contributions “SoDros mėnesinis”.

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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 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.
  • 15,22 percent if the person saves for a supplementary pension (2,7 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) – 64 676,30 Euro.

  • VSD - 8 097,47 Euro;
  • VSD - 9 843,73 Euro, if the person saves for a supplementary pension (2,7 percent);
  • VSD - 10 037,76 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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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 730 Euro, therefore PSD payment size is 50,95 Euro (730 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 4 514,41.

 

  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.

 

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.
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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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