"These taxpayers are not subject to the administrative liability measures applicable to Lithuanian taxpayers who do not comply with their obligation to report or pay personal income tax (GPM) due to the difference in the enforcement of the declaration or payment requirements," the VMI said in a letter responding to an inquiry from Social Democrat MP Laurynas Šedvydis.
In 2023, there were 15.8 thousand foreign citizens who were self-employed in Lithuania, according to VMI data. Of these, 12.4 filed income tax returns, while 2.2 thousand did not meet their tax obligations. Another 3.3 thousand foreigners did not submit value added tax (VAT) returns which they were obliged to do, LRT.lt reports.
VMI data from previous years show the increasing number of foreign nationals who are both self-employed and do not pay income tax in Lithuania. The people engaged in land passenger transport, postal and courier activities, taxis and specialised construction activities are the most likely to avoid paying the income tax, the authority said.
On 1 January 2024, a total of 131.5 thousand third-country nationals were employed in Lithuania under a contract. More than half of them – 73 000 – work in the transport and storage sector, which is followed by construction (22,000) and manufacturing (almost 13,000) sectors.