By acquiring a business certificate at the State Tax Inspectorate, you enter the policyholders' accounting list and you receive an obligation to pay:

  1. Social insurance contributions (pensions).
  2. Compulsory health insurance contributions.
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Individuals holding business certificates do not report to “Sodra”, they only have to pay their contributions for:

  1. Pensions to the state social insurance;
  2. Compulsory health insurance contributions.
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  1. If you carry out activities in accordance with the business certificate, you are insured by the pension insurance according to the order, provided for by law. When you pay these contributions, you are entitled to an old age retirement or disability pension. In the event of death, the insured's spouse will be able to receive the widow’s pension, while children will receive orphans' pensions.
  2. Persons also have to pay compulsory health insurance contributions.
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State social insurance contributions

The amount of the VSD contribution depends on the validity term of the business license.

  1. If the business license is valid for a month, from the first to the last day, then the standard monthly contribution is:
  • 48,40 Euro (8,72 percent of MMA);
  • 58,39 Euro (10,52 percent of MMA, if a person participates in additional pension accumulation and pays 1,8 percent contribution);
  • 65,05 Euro (11,72 percent of MMA, if a person participates in additional pension accumulation and pays 3 percent contribution).
  1. If a business license is valid for more or less than a month, social insurance contributions are calculated in proportion to the business license's duration.

  For example, the validity period of the business license is from 1 March 2019 to 20 March 2019, and the person does not participate in the accumulation of pensions. 48,40 Euro is divided from the number of calendar days in March, and the amount received is multiplied by 20 days (48,40 : 31 x 20 = 31,23 Euro). Therefore, you will be required to pay a 31,23 Euro VSD contribution for a business certificate for this period.

  For example, a business certificate is valid for these days of March 2019: 7 March 2019, 8 March 2019, 11 March 2019, 12 March 2019 and 31 March 2019, and the person does not participate in the accumulation of pensions. 48,40 Euro is divided from the number of calendar days in March, and the amount received is multiplied by 5 days (48,40 : 31 x 5 = 7,81 Euro). Therefore, you will be required to pay a 7,81 Euro VSD contribution for a business certificate for this period.

  For example, if a business certificate is valid for more than one month: from 16 April 2019 to 20 May 2019 and the person does not participate in additional pension accumulation. 48,40 Euro is divided from the number of calendar days in April and the amount received is multiplied by 15 days - the amount received is the state social insurance contribution for April (48,40 : 30 x 15 = 24,20 Euro). 48,40 Euro is divided from the number of calendar days in May and the amount received is multiplied by 20 days - the amount received is the monthly state social insurance contribution for May (48,40 : 31 x 20 = 31,23 Euro). The total amount of social insurance contributions for the duration of the business certificate would be 55,43 Euro (24,20 + 31,23 = 55,43 Euro).

  1. Whenever the business certificate is valid for more than three months, the VSD contributions can be paid later. The contributions for the last quarter are paid prior to the current quarter first month's 15th day.

  For example, if your business certificate is valid for 6 months (from 1 January 2019, to 30 June 2019) you should pay the VSD contributions for the months of January, February and March prior to the 15th of April, and contributions for April, May and June – prior to 15th of July.

 

Compulsory health insurance contributions

Persons with a business certificate pay their 6,98% PSD contribution from the MMA valid during the month for which the contribution is paid. The amount of the contribution does not vary regardless of the validity period of the business license valid for that month (except for the case below).

 

6,98 percent PSD contributions from MMA can be paid once per year, in case you were one of the persons, listed below during the corresponding calendar month:

  1. People, whose PSD contributions are paid by them or for them (i.e. people working under an employment contract, civil servants, officials, active individual enterprise owners, active real member of an economic partnership, member of an active small partnership, receive income according to authorship contracts, income from sport or performer activities, receiving tantrums or salary for participating in a supervisory board, board, loan committee, getting PSD contributions paid for as an owner of a small partnership, receive benefits according to the Law on sickness and maternity social insurance, provide agricultural or forestry services according to a service receipt, and others). Persons named in parts 1 and 2 of Article 17 of the Law on Health Insurance.
  2. People who are insured with state funds (i.e. pensioners, disabled people, etc.)

  In these cases, the contributions are recalculated in proportion to the period of validity of the business certificate for the relevant month (for example, the PSD contribution size from 1 January 2019 is 38,74 Euros per month, the business certificate was valid for 10 days and the month had 31 day, therefore, the PSD contribution is 12,50 Euro (38,74 Euro / 31x10).

  1. Whenever you are an owner of an individual economic activity, member of an active economic or small partnership, for a whole calendar month.

 In this case, you pay a 6,98% PSD contribution from the MMA, irrespective of the validity period of the business certificate you had during that month.

 VSD and PSD contributions are not paid whenever you purchase a business certificate for leasing residential premises.

 

Contribution payment terms

PSD contributions must be paid each month until the last day of the current month.

Foreigners, who have temporary permission to live in Lithuania and are working under business certificate 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.

  Individuals who pay contributions once a year must pay PSD contributions until the last day of the term to submit an annual income declaration to the State Tax Inspectorate.

  Important! Persons who have declared their departure from Lithuania are not charged PSD from the date of departure.

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State social insurance contributions

The amount of the VSD contribution depends on the validity term of the business license.

  1. If the business license is valid for a month, from the first to the last day, then the standard monthly contribution is:
  • 52,93 Euro (8,72 percent of MMA);
  • 65,68 Euro (10,82 percent of MMA, if a person participates in additional pension accumulation and pays 2,1 percent contribution);
  • 71,14 Euro (11,72 percent of MMA, if a person participates in additional pension accumulation and pays 3 percent contribution).
  1. If a business license is valid for more or less than a month, social insurance contributions are calculated in proportion to the business license's duration.

  For example, the validity period of the business license is from 1 March 2020 to 20 March 2020, and the person does not participate in the accumulation of pensions. 52,93 Euro is divided from the number of calendar days in March, and the amount received is multiplied by 20 days (52,93 : 31 x 20 = 34,15 Euro). Therefore, you will be required to pay a 34,15 Euro VSD contribution for a business certificate for this period.

  For example, a business certificate is valid for these days of March 2020: 7 March 2020, 8 March 2020, 11 March 2020, 12 March 2020 and 31 March 2020, and the person does not participate in the accumulation of pensions. 52,93 Euro is divided from the number of calendar days in March, and the amount received is multiplied by 5 days (52,93 : 31 x 5 = 8,54 Euro). Therefore, you will be required to pay a 8,54 Euro VSD contribution for a business certificate for this period.

  For example, if a business certificate is valid for more than one month: from 16 April 2020 to 20 May 2020 and the person does not participate in additional pension accumulation. 52,93 Euro is divided from the number of calendar days in April and the amount received is multiplied by 15 days - the amount received is the state social insurance contribution for April (52,93 : 30 x 15 = 26,46 Euro). 52,93 Euro is divided from the number of calendar days in May and the amount received is multiplied by 20 days - the amount received is the monthly state social insurance contribution for May (52,93 : 31 x 20 = 34,15 Euro). The total amount of social insurance contributions for the duration of the business certificate would be 60,61 Euro (26,46 + 34,15 = 60,61 Euro).

  1. Whenever the business certificate is valid for more than three months, the VSD contributions can be paid later. The contributions for the last quarter are paid prior to the current quarter first month's 15th day.

  For example, if your business certificate is valid for 6 months (from 1 January 2020, to 30 June 2020) you should pay the VSD contributions for the months of January, February and March prior to the 15th of April, and contributions for April, May and June – prior to 15th of July.

 

Compulsory health insurance contributions

Persons with a business certificate pay their 6,98% PSD contribution from the MMA valid during the month for which the contribution is paid. The amount of the contribution does not vary regardless of the validity period of the business license valid for that month (except for the case below).

 

6,98 percent PSD contributions from MMA can be paid once per year, in case you were one of the persons, listed below during the corresponding calendar month:

  1. People, whose PSD contributions are paid by them or for them (i.e. people working under an employment contract, civil servants, officials, active individual enterprise owners, active real member of an economic partnership, member of an active small partnership, receive income according to authorship contracts, income from sport or performer activities, receiving tantrums or salary for participating in a supervisory board, board, loan committee, getting PSD contributions paid for as an owner of a small partnership, receive benefits according to the Law on sickness and maternity social insurance, provide agricultural or forestry services according to a service receipt, and others). Persons named in parts 1 and 2 of Article 17 of the Law on Health Insurance.
  2. People who are insured with state funds (i.e. pensioners, disabled people, etc.)

  In these cases, the contributions are recalculated in proportion to the period of validity of the business certificate for the relevant month (for example, the PSD contribution size from 1 January 2020  is 42,37 Euros per month, the business certificate was valid for 10 days and the month had 31 day, therefore, the PSD contribution is 13,67 Euro (42,37 Euro / 31 x 10).

  1. Whenever you are an owner of an individual economic activity, member of an active economic or small partnership, for a whole calendar month.

 In this case, you pay a 6,98% PSD contribution from the MMA, irrespective of the validity period of the business certificate you had during that month.

 VSD and PSD contributions are not paid whenever you purchase a business certificate for leasing residential premises.

 

Contribution payment terms

PSD contributions must be paid each month until the last day of the current month.

Foreigners, who have temporary permission to live in Lithuania and are working under business certificate 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.

  Individuals who pay contributions once a year must pay PSD contributions until the last day of the term to submit an annual income declaration to the State Tax Inspectorate.

  Important! Persons who have declared their departure from Lithuania are not charged PSD from the date of departure.

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Estimated contributions are paid into 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.

 

State Social Insurance contributions codes:

  • 261 - when paying current contributions.
  • 262 - when paying due interest.
  • 263 - when paying fines for unlawfully reduced contributions.

 

Compulsory health insurance premiums codes:

  • 358 - when paying current contributions.
  • 359 - when paying contributions once a year, and paying off debts.
  • 360 - when paying due interest.
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State social insurance contributions

Persons who have acquired business certificates may not pay contributions (this period will not be included in the state social insurance pension insurance record period) only if they:

  • receive (are assigned) a state social insurance old age or social insurance lost working capacity (disability) pension;
  • receive a support pension or support compensation, with the exception of a orphan's support pension;
  • receive a social insurance old age or disability pension from a Member State of the European Union, other 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 or a court judgment has ordered the use of compulsory in-patient monitoring medical measures or educational measures in specialized mental health care institutions in accordance with the procedure established by the Criminal Code;
  • have reached the retirement age;
  • carry out individual activities by acquiring a business certificate for one year from the start of the first activity. The start of the first activity is accounted as the person becoming self-employed for the first time after 1 January 2018;
  • obtained a business certificate for renting premises.
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If a person loses the condition granting the right not to pay social insurance contributions during the period of validity of the business certificate, he must pay the debt for the remaining period of validity of the business certificate within 5 working days.

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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.

 
An application can be submitted:
  1. After having logged in to your personal “Sodra“ account of the resident where you may submit a free-form application and scanned documents attached to it (Applications > General applications, complaint > New application). “Sodra” division in which you are registered as an assured person must be selected as an addressee. 
  2. To “Sodra“ division. You must bring your identity document with you.
  3. Send by post the original of the completed application. 
 
If payment of contributions debt has been deferred for you, but you do not fulfil the terms of the agreement or do not pay current contributions, the agreement is terminated and the remaining debt plus accrued interest on late payment are recovered.
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  • SSI deposits are calculated, based on the minimum monthly salary (MMS), approved by the government. If the day of the business license commencement and the day of its termination coincide with the beginning and end of the calendar month, the SSI deposits are paid from the MMS. In this case, the pension insurance period of one month is calculated. If the business license validity period is less than a month, social insurance deposits are calculated in proportion to the number of working days. In such a case, the proportionally smaller part of the experience is calculated.

  If one works under a business license not for the entire calendar month but wants the full month of pension insurance period to be calculated, he/she must apply to “Sodra” and pay state social insurance deposits for the entire month.

The application can be submitted as follows:

  1. By logging in to the “Sodra” personal profile and submitting an application in free form (“Applications/General applications, complaints/New application, complaint/Application”).
  2. By arriving at the “Sodra” department with an identity document.
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Update date: 2020-04-16
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