Finance Minister: personal income tax for self-employed to reach 20% by 2026

Finance Minister Gintarė Skaistė says that the taxation of self-employment should become equal to the taxation of employment relationships in the coming three years, with the upper limit of the personal income tax reaching 20% by 2026.

“The personal income tax rate would not change in the first year. We only propose not to deduct the state social insurance (VSD) and compulsory health insurance (PSD) contributions from the taxable income. Which is now the case in employment relationships. We also propose to reduce the presumptive costs to 20% from 30% in 2024,” Skaistė said in a press conference on Tuesday.