MB Taxes in 2026: How Much Will You Actually Pay?
The small partnership (MB) in Lithuania remains one of the most popular business forms due to simpler management and more flexible cash withdrawals. However, in 2026, it is important to understand not only how much the profit tax is, but also how your personal withdrawals are taxed, as this is where the biggest differences lie.
In this article – simply and without complex terminology: what taxes does an MB pay and how much actually remains for the owner.
1️⃣ MB Profit Tax in 2026
Profit tax is paid on earned profit, not on turnover.
| Situation | Profit Tax Rate |
| New MB (meets conditions) | 0% for the first 2 years |
| Small MB (revenue ≤ €300,000) | 7 % |
| Other MBs | 17 % |
👉 This means that if your MB earned €40,000 in profit and the 7% rate applies, you will pay only €2,800 in profit tax, and the remaining profit can be distributed.
2️⃣ When Does an MB Become a VAT Payer?
An MB must register as a VAT payer when:
- annual revenue exceeds €45,000
- or trading with EU countries in certain cases
VAT is not your expense, but it changes accounting and cash flows.
3️⃣ How Can an MB Owner Withdraw Money?
This is where the most important part begins.
🟢 1. Dividends (profit distribution)
- 15% PIT applies
- No social contributions
- This is the simplest and often the most financially beneficial method
Example:
From €30,000 of distributed profit, the owner will pay €4,500 in PIT and receive €25,500 in hand
🟡 2. Withdrawals for Personal Needs
This is money that the MB member withdraws during the year.
Important change in 2026:
| Period | From What Amount Are Social Contributions Calculated |
| Until 2026-06-30 | from 50% of the withdrawn amount |
| From 2026-07-01 | from 90% of the withdrawn amount |
Social contributions (Sodra + health insurance) amount to approximately 20% of the base.
Example from 2026-07-01:
You withdraw €20,000 → contribution base = €18,000 → taxes ~€3,600
➡ leaves ~€16,400 before PIT
This means that this method becomes significantly more expensive than dividends.
🔵 3. Payments for Management or Services
An MB member can receive income for management or services under a civil contract.
Such income is taxed as other individual income and may fall under progressive PIT rates.
4️⃣ How Much Actually Remains for the Owner? (simplified comparison)
| Withdrawal Method | How Much Remains from €10,000 |
| Dividends | ~€8,500 |
| Withdrawals for personal needs (after 2026-07) | ~€6,500–7,000 |
| Salary-type payments | depends on PIT + contributions, often ~€6,000–7,000 |
5️⃣ When Is an MB Beneficial from a Tax Perspective?
An MB is usually favorable when:
✔ the business is still small or new
✔ profit is withdrawn as dividends
✔ there is no need to pay yourself a large regular salary
An MB becomes less favorable when the owner regularly withdraws large amounts for personal needs – from mid-2026, this is taxed significantly more heavily.
6️⃣ The Most Important Mistake
Many people think that an MB “has lower taxes.”
Reality: the form itself does not save taxes – everything depends on:
- how much the company earns
- how money is withdrawn
- whether tax benefits apply
🎯 Want to know your actual numbers?
Every situation is different. Sometimes an MB saves thousands, sometimes a UAB becomes more beneficial from the very first year.
👉 Register for a detailed consultation and receive an individual MB tax calculation completely free of charge.
We will evaluate:
- your projected revenue
- profit margin
- withdrawal method
- and show you how much will actually remain for you after all taxes
Register for a free consultation and make your decision based on numbers, not guesses.
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