Business taxes and owner taxation
Taxes depend on the legal form, the basis for a payment and individual circumstances. Company taxes and owner taxes are separate. Revenue earned by a company is not the same as money paid to its participants. First determine the company's tax liability, then the taxation of the recipient of each payment. Payment descriptions must match documents and the underlying transaction.
| Legal form | Corporate income tax | Typical payments to owners |
|---|---|---|
| UAB / AB | 17%; potentially 7% or 0% subject to conditions | Salary, dividends, genuine property or financing transactions |
| MB | Same general corporate tax rates | Personal-needs withdrawals, distributed profits, civil-contract fees |
| IĮ | Same general corporate tax rates | Owner's personal-needs withdrawals and distributed profits |
| VšĮ | Tax on commercial profits with applicable reliefs | Pay for actual work or lawful transactions; no profit distribution to stakeholders |
Corporate income tax is charged on taxable profit, not on every incoming bank transfer. VAT depends on supplies of goods and services, while personal income tax depends on the recipient's income category. [S1, S3, S6]
Corporate income tax in 2026 ↗
Personal income tax principles ↗
Small partnership (MB) taxes ↗
Private limited company (UAB) taxes ↗
Sole proprietorship (IĮ) taxes ↗
Public institution (VšĮ) taxes ↗
Information prepared on 14 October 2026. General guidance, not individual tax advice. Verify eligibility and rates for each case.