The Lithuanian parliament approved measures for individual income tax reform on 28 June 2018. The main changes are the replacement of the current flat individual income tax rate of 15% with a two-rate system for employment income that includes a 20% rate on income up to the new annual social security basis caps and a 27% rate on the amount exceeding the caps. These caps are equal to 120 average monthly salaries in 2019, 84 average monthly salaries in 2020, and 60 average monthly salaries in 2…