Every company registered in Lithuania has the same core accounting obligations, whether it is a one-person UAB run by a foreign founder or a mid-sized business with a full team in Vilnius. Bookkeeping must be maintained from the date of registration. Monthly declarations go to VMI. Annual financial statements must be filed with the Register of Legal Entities. Payroll must comply with Lithuanian Labour Code requirements and Sodra reporting rules. And from 2026, a formal remuneration system is required for every employer in Lithuania. This guide explains what accounting services in Lithuania cover, what your company must do and when, and how 1Office Lithuania handles everything on your behalf in English.
Accounting Obligations
What accounting in Lithuania requires from every registered company
Lithuanian accounting is governed by the Law on Accounting of the Republic of Lithuania and the Business Accounting Standards (VAS). Every UAB and branch registered in Lithuania must maintain double-entry bookkeeping, keep all supporting documentation for ten years, and submit regular declarations to VMI (the State Tax Inspectorate). These obligations begin on the date the company is registered and do not stop until the company is formally dissolved.
Lithuanian accounting records must be maintained in Lithuanian and amounts must be recorded in euros. In practice, many international accounting firms including 1Office Lithuania maintain working records in English and produce Lithuanian-language statutory documents for filing purposes. This means foreign founders get accounting in a language they can actually read, while the statutory output meets all Lithuanian requirements.
The accounting period in Lithuania
A Lithuanian company's accounting period is typically the calendar year (1 January to 31 December). Alternative accounting periods are permitted but must be registered with VMI. All annual reporting deadlines are calculated from the end of the accounting period. Changing the accounting period after registration requires VMI approval and affects all annual filing deadlines. For most foreign-owned UABs, using the calendar year is the simplest choice and aligns with Lithuanian authority expectations.
Who must keep accounts in Lithuania
All legal entities registered in Lithuania must keep accounts. This includes active UABs, dormant companies with zero activity, foreign company branches, and holding companies with no local employees. A company that has never traded is still legally required to maintain bookkeeping records and file annual statements. There is no exemption for size, inactivity, or foreign ownership.
Lithuanian accounting standards, VMI portal procedures, Sodra reporting requirements, and annual report formats are all specific to Lithuanian law. Accounting set up for Estonian, Finnish, or UK standards does not automatically produce compliant Lithuanian output. 1Office Lithuania provides accounting services in English, handled by a Lithuanian-qualified team who file directly with VMI, Sodra, and the Register of Legal Entities on your behalf.
1Office Lithuania provides monthly bookkeeping, VAT, payroll, and annual reports in English.
Monthly Declarations
Monthly accounting obligations: what Lithuanian companies must declare each month
Unlike some European jurisdictions where monthly filings only apply to larger companies, Lithuanian accounting requires monthly declarations from most active companies from the first month of activity. Understanding which declarations apply to your company and when they are due is the foundation of staying compliant.
VAT declarations (PVM deklaracija)
If your Lithuanian company is registered for VAT, monthly VAT returns must be filed with VMI by the 25th of the month following the reporting period. The Lithuanian standard VAT rate is 21%. Reduced rates of 9% apply to heating and hot water supply, passenger transport, hotel accommodation, books, and certain other goods and services. A 5% rate applies to prescription medicines and medical devices. VAT-registered companies can reclaim input VAT on qualifying business expenses, making voluntary early registration often beneficial even before the mandatory €45,000 threshold is reached.
Payroll declarations (GPM and Sodra)
Companies with employees or directors receiving salary must submit monthly payroll declarations to both VMI (personal income tax, GPM) and Sodra (social insurance). The combined employer social contribution rate in Lithuania in 2026 is 1.77% on top of the gross salary. Employee social contributions are 19.5% of gross salary, including pension, health, and unemployment contributions. The employer must also register each employee with Sodra before their first working day. Monthly payroll declarations are due by the 15th of the following month for VMI and by the same date for Sodra. 1Office Lithuania handles all payroll calculations, payslip preparation, and monthly declarations as part of the payroll service.
Corporate advance tax payments (CIT avansas)
Lithuanian companies whose CIT liability in the previous tax year exceeded €3,000 must make advance CIT payments during the year. These can be calculated based on the previous year's tax or the current year's estimated profit. Advance payments are due quarterly or monthly depending on the method chosen. 1Office Lithuania advises on the most appropriate advance payment method for each client's situation and ensures advance payments are correctly calculated and submitted.
Annual Report Lithuania
Annual report in Lithuania: what you must file and when
Every Lithuanian company must prepare and file an annual report (metinė finansinė atskaitomybė) each year. This is one of the most important compliance obligations and one that is frequently missed by foreign-owned companies who are unaware of the deadline or the process.
Annual report deadline
The annual report for a Lithuanian UAB must be filed with the Register of Legal Entities (Registrų centras) within six months of the end of the financial year. For calendar-year companies, the annual report deadline is 30 June. The annual corporate income tax return (CIT deklaracija) must be filed with VMI by the 15th of the sixth month after the financial year end, meaning 15 June for calendar-year companies. Note that the CIT return deadline is 15 days earlier than the annual report filing deadline. Both are separate obligations to separate authorities.
What the annual report must contain
The annual report consists of financial statements prepared in accordance with Lithuanian Business Accounting Standards (VAS): a balance sheet, profit and loss statement, and notes to the accounts. For micro and small companies, simplified financial statements are permitted. A company qualifies as a micro-company if it does not exceed two of the following: balance sheet total of €350,000, net revenue of €700,000, and average employees of 10. The financial statements must be signed by the company's director and approved by the shareholders before filing.
Corporate income tax rates in Lithuania 2026
| Company type | CIT rate | Conditions |
|---|---|---|
| Standard rate | 17% | Applies to all companies not qualifying for reduced rates. Increased from 16% on 1 January 2026. |
| Small company rate | 7% | Companies with fewer than 10 employees and annual revenue under €300,000. Reduced from previous 5% rate. |
| Startup rate (first 2 years) | 0% | New small companies in their first two tax periods. Employee count condition removed in 2026, broadening eligibility. |
| Agricultural companies | 0% or 5% | Special rates for qualifying agricultural activity. |
A Lithuanian UAB with zero activity during the year, no revenue, and no employees still must file an annual report with Registrų centras and a CIT return with VMI. There is no simplified dormant return. The full annual report process applies. Missing the 30 June deadline results in automatic penalties from Registrų centras. A company that fails to file for two consecutive years risks being struck from the register by the authorities.
1Office Lithuania prepares and files annual reports as a standalone service, even if your books are held elsewhere.
Tax Registration
Tax registration in Lithuania: what your company needs to register for
Registering your Lithuanian UAB with the Register of Legal Entities (Registrų centras) is only the first step. Most active companies also need to register with VMI for one or more tax obligations. Understanding which registrations apply to your business and getting them set up correctly at the start prevents compliance problems later.
Corporate income tax registration
Every Lithuanian company is automatically registered as a corporate income tax payer upon formation. No separate registration with VMI is required for CIT purposes. However, the company must file CIT declarations whether or not it has taxable income. The first CIT return covers the period from the company's first accounting period, even if it is less than a full year.
VAT registration in Lithuania
VAT registration becomes mandatory in Lithuania when annual taxable turnover reaches €45,000. This threshold applies to the preceding 12-month period and must be monitored continuously. When the threshold is reached, the company must apply for VAT registration within five business days. Voluntary registration is available before the threshold and is often advisable for B2B companies. VAT registration is processed by VMI and typically takes five to ten business days. Once registered, the company receives a VAT number (PVM kodas) and must begin charging VAT on all taxable supplies and filing monthly VAT returns. 1Office Lithuania handles VAT registration with VMI as part of formation packages and as a standalone service.
Employer registration with Sodra
Before paying any salary, the company must register as an employer with Sodra (the State Social Insurance Fund Board). Each employee must also be individually registered with Sodra before their first working day. Failure to register an employee before they start work is a compliance violation that carries fines from the State Labour Inspectorate. 1Office Lithuania handles employer registration and employee registration as part of the payroll service.
Excise duty, real estate tax, and other registrations
Depending on the nature of your business, additional tax registrations may be required. Companies producing or trading in excisable goods (alcohol, tobacco, fuel) must register for excise duty. Companies owning real estate in Lithuania pay real estate tax and must register the assets correctly. 1Office Lithuania advises on which additional registrations apply to your specific business activity.
1Office Lithuania handles VAT registration, employer registration, and all VMI filings for Lithuanian companies.
Payroll Services Lithuania
Payroll services in Lithuania: what running payroll actually involves
Lithuanian payroll is one of the more complex aspects of running a company here. It involves simultaneous obligations to VMI and Sodra, strict deadlines, and since June 2026, the new pay transparency requirements under the EU DAS Directive. Getting payroll right from the first payment is significantly easier than correcting errors retrospectively.
Minimum wage in Lithuania 2026
The Lithuanian minimum monthly wage (MMA) is €1,153 gross per month from 1 January 2026, increased from €1,038 in 2025. The minimum hourly rate is €7.07. All employment contracts under Lithuanian law must pay at least the minimum wage. This applies to foreign-owned Lithuanian companies posting workers from abroad as well as locally-hired employees. If your company has employees on contracts below the new minimum, those contracts must be updated.
Employer social contributions in Lithuania
| Contribution type | Rate | Paid by |
|---|---|---|
| Social insurance (employer) | 1.77% | Employer, on top of gross salary |
| Pension insurance (employee) | 8.72% or 12.52% | Employee (deducted from gross) |
| Health insurance (employee) | 6.98% | Employee (deducted from gross) |
| Unemployment insurance (employee) | 1.31% | Employee (deducted from gross) |
| Long-term employment benefit | 0.16% | Employee (deducted from gross) |
| Personal income tax (GPM) | 20% or 32% | Employee (20% up to threshold; 32% above) |
Pay transparency from June 2026
From 7 June 2026, every Lithuanian employer must have a formal remuneration system (DAS) in place under the EU Pay Transparency Directive. This applies to all employers regardless of size. The remuneration system must classify all job positions into gender-neutral categories using objective criteria and specify pay ranges for each category. 1Office Lithuania has developed a specific DAS compliance service that prepares the full remuneration system documentation in Lithuanian and English. View the DAS compliance service.
What 1Office Lithuania's payroll service includes
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Monthly payroll calculation. Gross-to-net calculations for all employees, taking into account applicable tax rates, social contributions, and any individual deductions or allowances.
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Payslip preparation. Individual payslips prepared in English and Lithuanian for each employee each month.
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VMI and Sodra declarations. Monthly GPM and Sodra declarations filed by the 15th of the following month. Employer contribution payments calculated and confirmed.
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Employee registration with Sodra. New employees registered with Sodra before their first working day. Termination notifications filed when employment ends.
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Annual payroll reporting. Year-end payroll summaries and individual earnings certificates prepared for each employee.
1Office Lithuania handles full payroll processing, VMI and Sodra declarations, and employee registration.
Business Address and Contact Person
Business address in Lithuania and the contact person requirement
Every Lithuanian company must have a registered business address in Lithuania listed in the Register of Legal Entities. This address is publicly visible and is where official correspondence from VMI, Registrų centras, Sodra, and other Lithuanian authorities is sent. For international founders who do not have a physical office in Lithuania, a virtual business address is the standard and fully compliant solution.
What a business address in Lithuania provides
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A compliant registered address. The address satisfies the Register of Legal Entities requirement. It is a real Vilnius business address, accepted by VMI, Registrų centras, and Lithuanian banks for all official purposes.
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Mail scanning and forwarding. All official correspondence received at the address is scanned and forwarded to you digitally. You never miss a VMI notice, Registrų centras letter, or legal communication regardless of where you are located.
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Privacy for directors and founders. Using a virtual business address keeps your personal address off the public company register. Anyone looking up your company in the Lithuanian Business Register (Jadis) sees the registered business address, not your home.
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Required for company formation. A Lithuanian business address must be provided at the point of company registration. Without it, your UAB cannot be registered with Registrų centras.
The contact person requirement in Lithuania
Lithuanian law requires every company whose management is located outside Lithuania to appoint a local contact person (kontaktinis asmuo). The contact person is an individual or legal entity resident in Lithuania who acts as the official point of contact for Lithuanian authorities. This is a legal requirement under the Law on Companies of the Republic of Lithuania and applies to all foreign-managed Lithuanian UABs.
The contact person must be registered in the Lithuanian Register of Legal Entities alongside the company. Failure to have a valid contact person registered is a compliance violation that VMI and Registrų centras actively enforce. 1Office Lithuania provides the contact person service for all foreign-managed Lithuanian companies, acting as the registered local contact for official authority communications. View the contact person service.
The contact person is a compliance role for official correspondence, not a management role. The contact person does not have authority to make business decisions, sign contracts, or represent the company commercially. However, the absence of a registered contact person is treated as a compliance failure by Lithuanian authorities and can trigger enforcement notices. 1Office Lithuania provides this service as standard for all foreign-managed company clients.
1Office Lithuania provides both services for foreign-owned UABs. Included in all formation packages and available standalone.
All Deadlines
Lithuanian company accounting and declaration deadlines for 2026
| Obligation | Deadline | Filed with |
|---|---|---|
| Annual report (metinė ataskaita) | 30 June (6 months after calendar year end) | Registrų centras |
| Corporate income tax return (CIT) | 15 June (15th day of 6th month after year end) | VMI via e.VMI portal |
| Monthly VAT return (PVM deklaracija) | 25th of the following month | VMI via e.VMI portal |
| Monthly payroll declaration (GPM) | 15th of the following month | VMI via e.VMI portal |
| Monthly Sodra declaration | 15th of the following month | Sodra via e.Sodra portal |
| CIT advance payment (avansas) | 15th of each month (monthly method) or quarterly | VMI |
| Annual shareholder meeting (AGM) | Within 4 months of financial year end (30 April) | Internal company requirement |
| Remuneration system (DAS) | 7 June 2026 (all employers) | Internal company requirement enforced by VDI |
FAQ
Frequently asked questions about accounting services in Lithuania
What accounting services does a Lithuanian company need?
A Lithuanian UAB needs monthly bookkeeping, monthly VAT returns (if VAT-registered), monthly payroll declarations to VMI and Sodra (if employing staff), an annual report filed with Registrų centras by 30 June, and a corporate income tax return filed with VMI by 15 June. Active companies also need to manage CIT advance payments if their prior year liability exceeded €3,000. 1Office Lithuania provides all of these services in English through a single accounting package.
What is the annual report deadline in Lithuania?
The annual report for a Lithuanian UAB must be filed with Registrų centras within six months of the end of the financial year. For calendar-year companies, this means 30 June. The corporate income tax return must be filed with VMI by 15 June, which is 15 days earlier. Both obligations apply even to companies with zero activity during the year. Missing the deadline triggers automatic penalties from Registrų centras.
What is the VAT registration threshold in Lithuania?
VAT registration becomes mandatory in Lithuania when annual taxable turnover reaches €45,000. The standard VAT rate is 21%. When the threshold is reached, the company must apply for registration within five business days. Voluntary registration before the threshold is available and is often beneficial for B2B companies who want to reclaim input VAT on costs from the start. 1Office Lithuania handles VAT registration with VMI.
What is a contact person in Lithuania and does my company need one?
A contact person (kontaktinis asmuo) is a Lithuania-resident individual or legal entity registered as the official point of contact for a Lithuanian company whose management is located outside Lithuania. It is a legal requirement under Lithuanian company law. All foreign-managed Lithuanian UABs must have a registered contact person. 1Office Lithuania provides this service for all foreign-managed company clients, acting as the registered local contact for official authority communications.
What is the corporate income tax rate in Lithuania in 2026?
The standard CIT rate in Lithuania is 17% from 1 January 2026, increased from 16%. Small companies with fewer than 10 employees and annual revenue under €300,000 qualify for a reduced rate of 7%. New small companies in their first two tax periods qualify for a 0% startup rate. The employee count condition for the 0% rate was removed in 2026, broadening eligibility.
Do I need a business address in Lithuania for my company?
Yes. Every Lithuanian company must have a registered business address in Lithuania listed in the Register of Legal Entities. For international founders without a physical office in Lithuania, a virtual business address from 1Office Lithuania provides a compliant Vilnius address for all official correspondence. The address is accepted by VMI, Registrų centras, Sodra, and Lithuanian banks. It is included in all 1Office Lithuania formation packages and available as a standalone service.
Can accounting in Lithuania be managed remotely in English?
Yes. 1Office Lithuania provides all accounting services remotely through the my1Office platform. Communication, management reports, and advisory work are all conducted in English. Lithuanian-language statutory documents (annual reports, tax returns, declarations) are prepared by the Lithuanian-qualified 1Office team and filed directly with the relevant Lithuanian authorities on your behalf. You do not need to visit Lithuania or navigate Lithuanian-language government portals.
What payroll obligations does a Lithuanian employer have?
Lithuanian employers must register each employee with Sodra before their first working day, run monthly payroll calculations, prepare payslips, file monthly GPM declarations with VMI by the 15th of the following month, file monthly Sodra declarations by the same date, and ensure all salaries meet the Lithuanian minimum wage of €1,153 per month in 2026. From 7 June 2026, all employers must also have a formal remuneration system (DAS) in place under the EU Pay Transparency Directive. 1Office Lithuania handles all payroll obligations as part of the payroll service.
Full accounting services for your Lithuanian company
Monthly bookkeeping, VAT, payroll, annual report, tax registration, business address, and contact person service, all in English, fully remote. New clients welcome.
