The Lithuania government has put forward a plan for individual income tax and social security reform. Key reforms include:
- The replacement of the current flat individual income tax rate of 15% with a two-rate system that would include a 21% rate on income up to the social security contribution basis cap (see below) and a 25% rate on the excess;
- The introduction of an annual social security contribution basis cap equal to 120 average monthly salaries in 2019, 84 average monthly salaries in 20…