Lithuania’s Ministry of Finance submitted the draft Budget for 2025 to the parliament on 16 October 2024 which includes proposed amendments to the Law on Personal Income Tax, among other tax provisions.
The proposal outlines an increase in the tax-exempt income amount (YTEAI).
The YTEAI will increase:
- If the annual employment income does not exceed 12 minimum monthly wages (MMWs) as of January 1 of that year, the YTEAI amounts to EUR 8,964;
- For annual employment income that exceeds 12 MMWs but does not surpass EUR 28,647.48 (currently EUR 26,004), the YTEAI is determined by the formula: YTEAI = 8,964 – [0.49 (currently 0.5)] × (annual employment income – 12 MMWs as of January 1).
- When annual employment income surpasses EUR 28,647.48 (currently EUR 26,004), the YTEAI is calculated using: YTEAI = 4,800 – 0.18 × (annual employment income – 12 × 642).
- If the monthly employment income does not exceed the 1 MMW in effect on January 1 of that year, the MTEAI is EUR 747.
- If the monthly employment income is greater than the 1 MMW in effect on January 1 but does not exceed EUR 2,387.29 (previously EUR 2,167), the MTEAI is calculated as: MTEAI = 747 – [0.49 (previously 0.5)] × (monthly employment income – the MMW in effect on January 1).
- If the monthly employment income surpasses EUR 2,387.29 (previously EUR 2,167), the MTEAI is determined by: MTEAI = 400 – 0.18 × (monthly employment income – 642).
The proposed amendments will take effect on 1 January 2025.
