Frequently asked tax questions
Does 0% corporate income tax mean there are no taxes at all?
No. Personal income tax on payments, VAT and social insurance may still apply.
Is an MB always cheaper than a UAB?
No. The comparison depends on the type of payment, the individual's other income, insurance status and desired social security protection.
Can I take only dividends and still accrue pension insurance periods?
Dividends alone do not generate pension insurance periods. Insurance may arise on another basis.
Can a member receive monthly payments?
Yes, provided there is a proper legal basis. Monthly transfers do not by themselves determine the payment's tax classification.
Does a sole shareholder or member get a different rate?
The number of participants alone does not decide this; relief conditions and related-entity rules matter.
Is repayment of a company loan a dividend?
Repayment of genuine loan principal must be distinguished from interest and profit distributions. Loan documentation and evidence of funds transferred are essential; tax classification requires individual assessment.
Does the same 15% rule apply to Lithuanian and foreign participants?
Not in every case. For non-residents and legal entities, consider the type of tax, applicable double-tax treaties and statutory exemptions.
Information prepared on 14 October 2026. General guidance, not individual tax advice. Verify eligibility and rates for each case.