Lawyer
An expert in corporate and international corporate law. He has many years of experience in establishing and reorganizing companies, supporting M&A transactions, as well as providing legal support for opening and running a business in the EU, Asia, and North America.
Accounting support in Lithuania
Accounting services (Buhalterinės paslaugos) in Lithuania is a comprehensive process that includes maintaining financial records, calculating taxes and fees, preparing and submitting reports, consulting on optimizing financial flows and complying with all applicable legislation.
Accounting and taxation activities in Lithuania are regulated by a number of codes and laws, the main of which are:
- Accounting Law (Buhalterinės apskaitos įstatymas)
- Tax Code (Mokesčių administravimo įstatymas)
- Law on Corporate Income Tax (Pelno mokesciones įstatymas)
- Law on Value Added Tax (Pridėtinės vertės mokesciones įstatymas)
Main forms of business and their impact on accounting services
The choice of legal form determines the complexity, volume and frequency of reporting.
Uždaroji akcinė bendrovė (UAB) – Closed Joint Stock Company.
The most popular form for foreign investors and medium-sized businesses. Analogous to an LLC or LLC.
Accounting requirements: Full accounting. Preparation of annual financial statements (balance sheet, income statement, cash flow statement, statement of changes in equity, explanatory note). Simplified forms are available for small companies (meeting the criteria).
Tax obligations: Income tax, VAT (if turnover exceeds the limit), payroll taxes.
Akcinė bendrovė (AB) – Open joint-stock company.
Designed for large businesses.
Accounting requirements: Mandatory audit (vidaus auditas) of annual financial statements, publication of statements.
Individuali įmonė (II) – Individual entrepreneur.
Not a legal entity, business is conducted in the name of an individual.
Accounting requirements: Simplified. Income book (pajamų knyga) may be kept. Simplified financial statements.
Taxation: Possibility of choosing a simplified taxation system (patent, preferential rates).
Būstinė (Branch) and Atstovybė (Representative Office) of a foreign company.
Not separate legal entities, but have obligations to keep records and submit reports in Lithuania.
Accounting requirements: Maintaining separate accounting records for the branch and preparing financial statements according to Lithuanian standards.
Basic requirements and obligations
- Maintaining primary documentation and accounting registers. Each business transaction must be confirmed by a primary document (invoice, act, bank statement). Based on them, data is entered into accounting registers.
- Calculation and payment of taxes.
- Income tax (Pelno mokestis): Advance payments during the year, annual declaration. It is important to classify expenses correctly.
VAT (PVM): Registration by a VAT payer is mandatory if the annual turnover exceeds 45,000 euros (from 2023). The VAT declaration is submitted monthly or quarterly (for small payers) in electronic form by the 25th of the month following the reporting period. Correct execution of electronic invoices (e-sąskaita faktūra) is critical. - Payroll taxes (Darbo užmokestis): The employer withholds income tax (GPM) from the employee’s salary at a rate of 20% (and an additional 15% for high incomes). The employer calculates and pays social insurance contributions (rate of about 31-32% of the salary). Late payment or incorrect calculation of taxes leads to fines and penalties. VMI has the right to block the company’s accounts for large debts.
- Preparation and submission of financial (accounting) statements. Annual financial statements are prepared for the calendar year (from January 1 to December 31) and must be submitted to the Register of Legal Entities (JAR) within 5 months after the end of the financial year (i.e. by June 1). For individual companies (AB, large UAB) publication is mandatory.
- Labor and salary reporting. Monthly submission of information to VMI and the Social Insurance Fund (Sodra) on accrued salaries, withheld taxes, and paid contributions.
Key nuances for foreign companies
- Electronic declaration (Elektroninis deklaravimas): Almost all communication with VMI and Sodra takes place electronically through special systems. This requires a qualified electronic signature and knowledge of the interface language (Lithuanian).
- Document language: The law does not require accounting to be kept only in Lithuanian, but tax reporting and communication with authorities are conducted in the state (Lithuanian) language. All submitted documents must be translated or accompanied by a Lithuanian text. It is better to immediately agree with the accountant on the provision of regular reports in English.
- Transfer pricing (Transferinės kainos): Companies that carry out transactions with related non-resident persons are obliged to confirm that prices correspond to the market level and submit special reports if the turnover of such transactions exceeds 500 thousand euros.
- Director’s liability (Direktorius/Vadovas): The company’s manager is personally responsible for the correctness of accounting and timely payment of taxes. In the event of bankruptcy due to violation of tax legislation, subsidiary liability may arise.
- Automatic exchange of information (DAC6, CRS): Lithuania participates in international tax and financial information exchange systems. The accountant must understand the reporting obligations for international groups of companies.
- Industry specifics: For fintech companies (especially those licensed by the Bank of Lithuania), gaming business, e-commerce, there are additional reporting requirements and specific taxation rules.
Our company “Prikhodko & Partners” provides comprehensive legal and accounting support for business in Lithuania, transforming complex administrative challenges into a clear, transparent and secure process.
Our specialists understand both Lithuanian legislation and international standards, providing a full cycle of services: from company registration and development of accounting policies to daily bookkeeping, calculation of all types of taxes and fees, as well as timely submission of electronic reporting to the State Tax Inspectorate (VMI) and the Center of Registers.
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Do you need an accountant for your business in Lithuania?
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Are you interested in financial transaction monitoring in Lithuania?
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during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)

