Small partnership (MB) taxes
A small partnership (MB) pays its own corporate income tax. A member's personal income tax (PIT) depends on the legal basis for the payment. For a Lithuanian tax-resident member, the main income types under codes 02, 26 and 77 are class B income: the member calculates and pays PIT personally.
| Payment | PIT | Social insurance |
|---|---|---|
| Personal needs, code 02 | 20 / 25 / 32%; annual tax-free allowance may apply | VSD and PSD on the statutory contribution base |
| Distributed profits, code 26 | 15% | No VSD or PSD on the profit distribution |
| Services including management, code 77 | 15% up to the aggregate 12-average-wage threshold; 20 / 25 / 32% above | Service fees do not automatically create a code-02 contribution base |
A service contract must correspond to genuine services and must not disguise employment. The total amount of a member's civil service and work contracts is statutorily limited to EUR 100,000 per calendar year. This is not the threshold for the 15% PIT rate. [S3, S4]
Payments for personal needs
The VSD contribution rate is 13.83%, or 16.83% with an additional 3% pension contribution. PSD is 6.98%. Until 30 June 2026, the contribution base was 50% of the amount withdrawn for personal needs; from 1 July 2026 it is 90%. Without these withdrawals there is no VSD on them, but a minimum PSD obligation may still arise. [S5]
Worked example: EUR 2,000 paid under code 02 in October 2026; no extra pension saving, exemptions or contribution ceilings, no tax-free allowance, and annual income remains within the 20% PIT bracket.
| Calculation | Amount |
|---|---|
| Contribution base: EUR 2,000 × 90% | EUR 1,800.00 |
| VSD: 1,800 × 13.83% | EUR 248.94 |
| PSD: 1,800 × 6.98% | EUR 125.64 |
| PIT: 2,000 × 20% | EUR 400.00 |
| Total calculated taxes and contributions | EUR 774.58 |
If the member pays PIT out of the EUR 2,000 received, EUR 1,600 remains after PIT, while the MB additionally pays EUR 374.58 in social contributions: total company cash outlay EUR 2,374.58. If the member economically bears all taxes and contributions from the EUR 2,000, EUR 1,225.42 remains. These are different funding assumptions, not a universal “net salary”. Corporate income tax is not included.
PSD when the member receives no withdrawals
Minimum monthly PSD in 2026 is EUR 80.48 (EUR 1,153 × 6.98%). Statutory exemptions apply to certain insured persons. Employment elsewhere may remove the minimum monthly PSD requirement, but does not automatically remove PSD on personal-needs withdrawals. Eligibility must be checked individually.
Manager who is not an MB member
Do not confuse a non-member manager's remuneration with a member-manager's income. PIT follows the 20 / 25 / 32% annual scale and is class A income withheld by the MB. The social insurance contribution rate is 15.70%, or 18.70% with an additional 3% pension contribution. [S3–S5]
Civil-contract example
A member receives only EUR 30,000 in annual remuneration under a qualifying service contract, with no other relevant income. PIT: EUR 27,745.80 × 15% + EUR 2,254.20 × 20% = EUR 4,612.71; EUR 25,387.29 remains after PIT. This is an arithmetic illustration, not a calculation of all taxes of the company and member. PSD coverage and potential VAT on the member's services require separate assessment.
Information prepared on 14 October 2026. General guidance, not individual tax advice. Verify eligibility and rates for each case.