I have a business certificate

What should I do?

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

Social insurance contributions (pensions).
Compulsory health insurance contributions.

What information should I provide to “Sodra”?

Individuals holding business certificates do not report to “Sodra”, they only have to pay their contributions for:

Pensions to the state social insurance;
Compulsory health insurance contributions.

Why should I pay to “Sodra”?

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.
Payment of PSD contributions ensures free access to healthcare, reimbursement of the costs of the services provided, medicines and medical supplies, etc.
Persons also have to pay compulsory health insurance contributions.

How much and when should I pay to „Sodra“ in 2023?

We recommend using a business certificate calculator.

Rates of the SSI contributions

An amount of the SSI contribution depends on the period of validity of a business certificate.

1st Option

If a business certificate is valid for a month, from its first to the last day, then a standard monthly contribution amount shall be paid:

You are not building up a complementary pension – 8.72% of the MMW (840€ x 8.72% = 73.25€)
You are building up a complementary pension and are paying 3% – 11.72% of the MMW (840€ x 11.72% = 98.45€)

2nd Option

If a business certificate is valid for less or more than a month, the SSI contributions are calculated in proportion to the period of validity of a business certificate.

Examples when a complementary pension is not being built up.

Example 1

The period of validity of a business certificate: from 1 March 2023 to 20 March 2023.

73.25 : 31 x 20 = 47.26€, where:

73.25€ - SSI monthly contribution
31 days – number of days in March
20 days – period of validity of a business certificate

The SSI monthly contribution is divided by the number of days in that specific month, then is multiplied by the days of validity of a business certificate. This way a payable SSI contribution is obtained.

Example 2

A business certificate is obtained in the following days: 7 March 2023, 8 March 2023, 11 March 2023, 12 March 2023, and 31 March 2023 (5 days in total).

63.66 : 31 x 5 = 10.27€, where:

73.25€ - SSI monthly contribution
31 days – number of days in March
5 days – number of the days of validity of a business certificate

Example 3

Period of validity of a business certificate: from 16 April 2023 to 20 May 2023.

April:

73.25 : 30 x 15 = 31.83€, where:

73.25€ - SSI monthly contribution
30 days – number of days in April
15 days – number of the days of validity of a business certificate (April)

May:

73.25 : 31 x 20 = 47.26€, where:

73.25€ SSI monthly contribution
31 days – number of the days in May
20 days – number of the days of validity of a business certificate (May)

Total payable amount:

36.63€ + 47.26€ = 83.89€

3rd Option

When a business certificate is valid for a period of more than three months, SSI contributions can be paid later. Payment for the previous quarter has to be made by the 15^th day of the first month of the current quarter.

For example, your business certificate is valid for 6 months (from 1 January 2023 to 30 June 2023):

SSI contributions for January, February and March have to be paid by 15 April.
for April, May and June – by 15 July.

An individual having acquired a business certificate for incomplete month can pay the SSI contributions for a full month.

To this end, an Application to pay the state social security contributions for a full month during the period of validity of the business certificate (in Lithuanian) of the prescribed form has to be submitted (hereinafter – the Application).

This can be done after having logged in to the personal “Sodra” account of an insurer and then selecting in the menu bar Forms and Templates (Blanks) → Applications / complaints / additional information → Create new → Full list → Application to pay the state social security contributions of a business license for a full month (VL-PR,01).

Important! To submit an Application and to pay the SSI contributions for the full month(s) of THE PREVIOUS YEAR, the applicant has to log in to the personal “Sodra” account of a resident and submit an Application having selected New application / complaint.

An Application can be also submitted:

By post – the Application form can be found here (in Lithuanian). When an Application is sent by post, it must be accompanied by a copy of the personal identity document certified in accordance with the law (for example, by the Notary Public).

In “Sodra” division the Application will be completed by “Sodra” employee who will present it to you for signing. You must bring to the division your personal identity document (passport, Personal Identity Card, the residence permit in Lithuania).

Important!

When completing the Application, you must have acquired a business certificate for the specified date “From...“.
The period specified in the Application (date “From…to…”) cannot overlap with the periods of the previously submitted Applications.
The Application will not be executed if the SSI contributions for the full month are not paid on time.

Important!

Given that income received by persons during the year has to be declared before 1 May of the following year, a person has the right to pay the SSI contributions for a full month(s) by 1 May of the following year.

For example, a person, who in 2022 had a business certificate that was not valid for a full month, will have to pay the SSI contributions for full months by 2 May 2023. If, for some reason, the deadline for submitting the income tax return is postponed, these steps must be completed by the deadline for submitting the annual income tax return for the previous year. Such a possibility is not granted for previous years.

The Application submitted does not affect the person‘s obligation to pay the CHI contributions.

Rates of the CHI contributions

Irrespective of the duration of a business certificate

>> contribution of 6.98% of the MMW that is valid in the month for which the CHI contribution is paid.

The maximum amount of CHI contributions – 703,56 EUR.

In proportion to the period of validity of a business certificate, if in the relevant month you:

>> are paying CHI contributions and/or CHI contributions are paid on your behalf (you are employed, you are a civil servant, etc.);

>> you are covered by state social insurance at the expense of the state (pensioner, disabled person, etc.).

For example, an amount of the CHI contribution is 58.63€ per month, a business certificate is valid for 10 days, and there were 31 days in the month. Therefore, the CHI contribution is 18.91€ (58.63€ ÷ 31 × 10).

Terms of the contributions

CHI contributions should be paid each month by the last day of the current month. The contributions for a relevant month can be paid once a year, but not later that by 2 May of the next year, if in that month:

you have the right to pay CHI contributions in proportion to the period of validity of the business certificate issued;
when throughout the calendar month you are the owner of a sole proprietorship, a member of a partnership or a small partnership;
you receive income under a copyright agreement or from the sports or performer activities;
you receive share of profits or remuneration for activity in the supervisory board, board, loan committee;
CHI contributions are paid on your behalf as for the head of a small partnership;
you receive a benefit under the Law on Sickness and Maternity Social Insurance;
you provide agricultural or forestry services under a services receipt.

Foreigners who have temporary residence permits in Lithuania and who work under business certificates are advised to pay the CHI contributions in advance because these persons are considered as individuals covered by the compulsory health insurance only after paying the CHI contribution for the current month.

For example, a contribution for September has to be paid by 31 August.

Important!

CHI contributions cease to be calculated for persons who have declared their departure from Lithuania from the date of departure of such persons from the country.
There is no need to pay SSS and CHI contributions when a business certificate has been acquired for lease of residential premises.

How much and when should I pay to „Sodra“ in 2022?

We recommend using a business certificate calculator.

Rates of the SSI contributions

An amount of the SSI contribution depends on the period of validity of a business certificate.

1st Option

If a business certificate is valid for a month, from its first to the last day, then a standard monthly contribution amount shall be paid:

You are not building up a complementary pension – 8.72% of the MMW (730€ x 8.72% = 63.66€)
You are building up a complementary pension and are paying 2.7% – 11.42% of the MMW (730€ x 11.42% = 83.37€)
You are building up a complementary pension and are paying 3% – 11.72% of the MMW (730€ x 11.72% = 85.56€)

2nd Option

If a business certificate is valid for less or more than a month, the SSI contributions are calculated in proportion to the period of validity of a business certificate.

Examples when a complementary pension is not being built up.

Example 1

The period of validity of a business certificate: from 1 March 2022 to 20 March 2022.

63.66 : 31 x 20 = 41.07€, where:

63.66€ - SSI monthly contribution
31 days – number of days in March
20 days – period of validity of a business certificate

Example 2

A business certificate is obtained in the following days: 7 March 2022, 8 March 2022, 11 March 2022, 12 March 2022, and 31 March 2022 (5 days in total).

63.66 : 31 x 5 = 10.27€, where:

63.66€ - SSI monthly contribution
31 days – number of days in March
5 days – number of the days of validity of a business certificate

Example 3

Period of validity of a business certificate: from 16 April 2022 to 20 May 2022.

April:

63.66 : 30 x 15 = 31.83€, where:

63.66€ - SSI monthly contribution
30 days – number of days in April
15 days – number of the days of validity of a business certificate (April)

May:

63.66 : 31 x 20 = 41.07€, where:

63.66€ SSI monthly contribution
31 days – number of the days in May
20 days – number of the days of validity of a business certificate (May)

Total payable amount:

31.83€ + 41.07€ = 72.90€

3rd Option

For example, your business certificate is valid for 6 months (from 1 January 2022 to 30 June 2022):

SSI contributions for January, February and March have to be paid by 15 April.
for April, May and June – by 15 July.

An individual having acquired a business certificate for incomplete month can pay the SSI contributions for a full month.

An Application can be also submitted:

By post – the Application form can be found here (in Lithuanian). When an Application is sent by post, it must be accompanied by a copy of the personal identity document certified in accordance with the law (for example, by the Notary Public).

In “Sodra” division the Application will be completed by “Sodra” employee who will present it to you for signing. You must bring to the division your personal identity document (passport, Personal Identity Card, the residence permit in Lithuania).

Important!

When completing the Application, you must have acquired a business certificate for the specified date “From...“.
The period specified in the Application (date “From…to…”) cannot overlap with the periods of the previously submitted Applications.
The Application will not be executed if the SSI contributions for the full month are not paid on time.

Important!

For example, a person, who in 2021 had a business certificate that was not valid for a full month, will have to pay the SSI contributions for full months by 1 May 2022. If, for some reason, the deadline for submitting the income tax return is postponed, these steps must be completed by the deadline for submitting the annual income tax return for the previous year. Such a possibility is not granted for previous years.

The Application submitted does not affect the person‘s obligation to pay the CHI contributions.

Rates of the CHI contributions

Irrespective of the duration of a business certificate

>> contribution of 6.98% of the MMW that is valid in the month for which the CHI contribution is paid.

The maximum amount of CHI contributions – 611,40 EUR.

In proportion to the period of validity of a business certificate, if in the relevant month you:

>> are paying CHI contributions and/or CHI contributions are paid on your behalf (you are employed, you are a civil servant, etc.);

>> you are covered by state social insurance at the expense of the state (pensioner, disabled person, etc.).

For example, an amount of the CHI contribution is 50.95€ per month, a business certificate is valid for 10 days, and there were 31 days in the month. Therefore, the CHI contribution is 16.44€ (50.95€ ÷ 31 × 10).

Terms of the contributions

CHI contributions should be paid each month by the last day of the current month. The contributions for a relevant month can be paid once a year, but not later that by 1 May of the next year, if in that month:

you have the right to pay CHI contributions in proportion to the period of validity of the business certificate issued;
when throughout the calendar month you are the owner of a sole proprietorship, a member of a partnership or a small partnership;
you receive income under a copyright agreement or from the sports or performer activities;
you receive share of profits or remuneration for activity in the supervisory board, board, loan committee;
CHI contributions are paid on your behalf as for the head of a small partnership;
you receive a benefit under the Law on Sickness and Maternity Social Insurance;
you provide agricultural or forestry services under a services receipt.

For example, a contribution for September has to be paid by 31 August.

Important!

CHI contributions cease to be calculated for persons who have declared their departure from Lithuania from the date of departure of such persons from the country.
There is no need to pay SSS and CHI contributions when a business certificate has been acquired for lease of residential premises.

How much and when should I pay to „Sodra“ in 2021?

We recommend using a business certificate calculator.

Rates of the SSI contributions

An amount of the SSI contribution depends on the period of validity of a business certificate.

1st Option

If a business certificate is valid for a month, from its first to the last day, then a standard monthly contribution amount shall be paid:

You are not building up a complementary pension – 8.72% of the MMW (642€ x 8.72% = 55.98€)
You are building up a complementary pension and are paying 2.4% – 11.12% of the MMW (642€ x 11.12% = 71.39€)
You are building up a complementary pension and are paying 3% – 11.72% of the MMW (642€ x 11.72% = 75.24€)

2nd Option

If a business certificate is valid for less or more than a month, the SSI contributions are calculated in proportion to the period of validity of a business certificate.

Examples when a complementary pension is not being built up.

Example 1

The period of validity of a business certificate: from 1 March 2021 to 20 March 2021.

55.98 : 31 x 20 = 36.12€, where:

55.98€ - SSI monthly contribution
31 days – number of days in March
20 days – period of validity of a business certificate

Example 2

A business certificate is obtained in the following days: 7 March 2021, 8 March 2021, 11 March 2021, 12 March 2021, and 31 March 2021 (5 days in total).

55.98 : 31 x 5 = 9.03€, where:

55.98€ - SSI monthly contribution
31 days – number of days in March
5 days – number of the days of validity of a business certificate

Example 3

Period of validity of a business certificate: from 16 April 2021 to 20 May 2021.

April:

55.98 : 30 x 15 = 27.99€, where:

55.98€ - SSI monthly contribution
30 days – number of days in April
15 days – number of the days of validity of a business certificate (April)

May:

55.98 : 31 x 20 = 36.12€, where:

55.98€ SSI monthly contribution
31 days – number of the days in May
20 days – number of the days of validity of a business certificate (May)

Total payable amount:

27.99€ + 36.12€ = 64.11€

3rd Option

For example, your business certificate is valid for 6 months (from 1 January 2021 to 30 June 2021):

SSI contributions for January, February and March have to be paid by 15 April.
for April, May and June – by 15 July.

An individual having acquired a business certificate for incomplete month can pay the SSI contributions for a full month.

An Application can be also submitted:

By post – the Application form can be found here (in Lithuanian). When an Application is sent by post, it must be accompanied by a copy of the personal identity document certified in accordance with the law (for example, by the Notary Public).

In “Sodra” division the Application will be completed by “Sodra” employee who will present it to you for signing. You must bring to the division your personal identity document (passport, Personal Identity Card, the residence permit in Lithuania).

Important!

When completing the Application, you must have acquired a business certificate for the specified date “From...“.
The period specified in the Application (date “From…to…”) cannot overlap with the periods of the previously submitted Applications.
The Application will not be executed if the SSI contributions for the full month are not paid on time.

Important!

For example, a person, who in 2020 had a business certificate that was not valid for a full month, will have to pay the SSI contributions for full months by 1 May 2021. If, for some reason, the deadline for submitting the income tax return is postponed, these steps must be completed by the deadline for submitting the annual income tax return for the previous year. Such a possibility is not granted for previous years.

The Application submitted does not affect the person‘s obligation to pay the CHI contributions.

Rates of the CHI contributions

Irrespective of the duration of a business certificate

>> contribution of 6.98% of the MMW that is valid in the month for which the CHI contribution is paid.

The maximum amount of CHI contributions – 537.72 EUR.

In proportion to the period of validity of a business certificate, if in the relevant month you:

>> are paying CHI contributions and/or CHI contributions are paid on your behalf (you are employed, you are a civil servant, etc.);

>> you are covered by state social insurance at the expense of the state (pensioner, disabled person, etc.).

For example, an amount of the CHI contribution is 44.81€ per month, a business certificate is valid for 10 days, and there were 31 days in the month. Therefore, the CHI contribution is 14.45€ (44.81€ ÷ 31 × 10).

Terms of the contributions

you have the right to pay CHI contributions in proportion to the period of validity of the business certificate issued;
when throughout the calendar month you are the owner of a sole proprietorship, a member of a partnership or a small partnership;
you receive income under a copyright agreement or from the sports or performer activities;
you receive share of profits or remuneration for activity in the supervisory board, board, loan committee;
CHI contributions are paid on your behalf as for the head of a small partnership;
you receive a benefit under the Law on Sickness and Maternity Social Insurance;
you provide agricultural or forestry services under a services receipt.

For example, a contribution for September has to be paid by 31 August.

Important!

CHI contributions cease to be calculated for persons who have declared their departure from Lithuania from the date of departure of such persons from the country.
There is no need to pay SSS and CHI contributions when a business certificate has been acquired for lease of residential premises.

How should I pay to “Sodra”?

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.

SSI payment codes

Name of the payment	Payment code
Current contributions	444
Due interest
Fines for unlawfully reduced contributions

CHI payment codes

Name of the payment	Payment code
Current contributions	444
Contributions paying one a year and paying off debts
Due interest

Important! When making a payment to a resident's personal "Sodra" account, you can see another payment code (for example: 252) in the already created payment template - you do not need to do anything / change the payment code.

When can I not pay VSD contributions to “Sodra”?

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. 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.
obtained a business certificate for renting premises.

When is the possibility of not paying VSD contributions to “Sodra” terminated?

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.

How is the experience calculated for old-age pension?

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. For this purpose, it is necessary to submit an application in the established form to pay state social insurance contributions for a full month during the period of validity of the business certificate.

The application can be submitted as follows:

By logging in to the “Sodra” personal account and submitting an application in free form Applications/General applications,complaints → New application, complaint/Application → Create new → Full list → Application for payment of state social security contributions for a full month (VL-PR,01).
By arriving at the “Sodra” department with an identity document.
By post – application form can be found here. When sending an application by post, a copy of the identity document, certified according to the procedure established by law (e.g., notary) must be attached.

Important! In order to submit a request and pay VSD contributions for the full month (s) of THE PREVIOUS YEAR, the application is submitted after signing in to a personal "Sodra" account for the resident and selecting a New application/complaint (in lithuanian).

Important!

To complete the application for the specified date “From...” it is necessary to have a business certificate.
The period specified in the request (date “From... to...”) must not overlap with the periods of previous applications.
The application will not be executed if the VSD contributions for a full month are not paid on time.

Important! Having assessed that the income received by persons during the current year is declared before 1st of May of the following year, a person shall have the right to pay VSD contributions for the full month (s) before 1st of May of the following year.

For example, a person who had a business certificate valid for a part of a month in 2021 would have to pay VSD contributions for full months before 1 May 2022. Where the time limit of the income declaration is postponed for certain reasons, these actions must be carried out within the time limit for filing the annual income declaration for the previous year. No such possibility shall be granted for the previous years.

The submitted application does not affect the person’s obligation to pay contributions to the PSD.

Can I defer the payment of the contributions?

Yes, if:

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.