{"id":25607,"date":"2026-03-13T00:54:38","date_gmt":"2026-03-12T22:54:38","guid":{"rendered":"https:\/\/smartaccountai.lt\/uab-taxes-in-2026-how-much-will-you-actually-pay\/"},"modified":"2026-07-17T11:13:52","modified_gmt":"2026-07-17T09:13:52","slug":"uab-taxes-in-2026-how-much-will-you-actually-pay","status":"publish","type":"post","link":"https:\/\/smartaccountai.lt\/en\/uab-taxes-in-2026-how-much-will-you-actually-pay\/","title":{"rendered":"UAB Taxes in 2026: How Much Will You Actually Pay?"},"content":{"rendered":"\n<p>A private limited company (UAB) is one of the most popular business forms in Lithuania. It provides greater credibility, a clear structure, and a convenient model for owner compensation. However, many founders typically ask: <strong>how much tax will I actually have to pay?<\/strong>  <\/p>\n\n<p>In this article, we clearly break down:<\/p>\n\n<p>\u2714 profit tax<br\/>\u2714 VAT<br\/>\u2714 owner compensation<br\/>\u2714 dividends<br\/>\u2714 how much remains &#8220;in hand&#8221;<\/p>\n\n<p><strong>1\ufe0f<\/strong><strong>\u20e3<\/strong><strong> Profit Tax for UAB in 2026<\/strong><\/p>\n\n<p>Profit tax is calculated on <strong>earned profit<\/strong>, not on turnover.<\/p>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Situation<\/strong><\/td><td><strong>Profit Tax Rate<\/strong><\/td><\/tr><\/thead><tbody><tr><td>New UAB (meets conditions)<\/td><td><strong>0% for the first 2 years<\/strong><\/td><\/tr><tr><td>Small UAB (revenue \u2264 \u20ac300,000)<\/td><td><strong>7 %<\/strong><\/td><\/tr><tr><td>Other UAB<\/td><td><strong>17 %<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<p><strong>Example:<\/strong><br\/>If a UAB earned \u20ac60,000 in profit and the 17% rate applies:<br\/>\u27a1 profit tax = <strong>\u20ac10,200<\/strong><br\/>\u27a1 \u20ac49,800 remains for distribution or reinvestment<\/p>\n\n<p><strong>2<\/strong><strong>\ufe0f<\/strong><strong>\u20e3<\/strong><strong> When Does a UAB Become a VAT Payer?<\/strong><\/p>\n\n<p>VAT registration is mandatory when:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>annual revenue exceeds <strong>\u20ac45,000<\/strong><\/li>\n\n\n\n<li>or trade is conducted with EU partners in certain cases<\/li>\n<\/ul>\n\n<p>VAT is not a company expense, but it affects pricing and cash flows.<\/p>\n\n<p><strong>3\ufe0f<\/strong><strong>\u20e3<\/strong><strong> How Can a UAB Owner Receive Money?<\/strong><\/p>\n\n<p>This is where the most important part begins \u2013 <strong>the method of withdrawing money changes the final tax burden.<\/strong><\/p>\n\n<p>\ud83d\udfe2 <strong>1. Salary (Employment Income)<\/strong><\/p>\n\n<p>The owner can be employed by the UAB and receive a salary.<\/p>\n\n<p><strong>The following is calculated from gross salary:<\/strong><\/p>\n\n<ul class=\"wp-block-list\">\n<li>Personal Income Tax (GPM) \u2013 20\u201332% (depends on income level)<\/li>\n\n\n\n<li>Social insurance contributions (VSD + PSD)<\/li>\n\n\n\n<li>Employer social contributions<\/li>\n<\/ul>\n\n<p><strong>From \u20ac1,000 gross, approximately \u20ac600 often remains in hand.<\/strong><\/p>\n\n<p>\ud83d\udc49 Salary is beneficial when you need:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>official income for the bank<\/li>\n\n\n\n<li>social guarantees (sickness, pension, maternity)<\/li>\n<\/ul>\n\n<p>\ud83d\udfe1 <strong>2. Dividends (Profit Distribution)<\/strong><\/p>\n\n<p>This is the most commonly used method to withdraw profit.<\/p>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Indicator<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Dividend GPM<\/td><td><strong>15 %<\/strong><\/td><\/tr><tr><td>Social contributions<\/td><td>NONE<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<p><strong>Example:<\/strong><br\/>From \u20ac40,000 in dividends \u2192 GPM \u20ac6,000<br\/>\u27a1 the owner receives <strong>\u20ac34,000 in hand<\/strong><\/p>\n\n<p>Dividends are almost always more efficient than salary if the goal is to withdraw profit.<\/p>\n\n<p>\ud83d\udd35 <strong>3. Profit Retained in the Company<\/strong><\/p>\n\n<p>If profit is not distributed:<\/p>\n\n<p>\u2714 no GPM is paid<br\/>\u2714 funds can be used for investments<br\/>\u2714 this strengthens the company&#8217;s financial stability<\/p>\n\n<p><strong>4\ufe0f<\/strong><strong>\u20e3<\/strong><strong> How Much Actually Remains for the Owner?<\/strong><\/p>\n\n<p><strong>Example: UAB earns \u20ac50,000 in profit<\/strong><\/p>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Step<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Profit tax (17%)<\/td><td>\u2013\u20ac8,500<\/td><\/tr><tr><td>Profit remaining<\/td><td>\u20ac41,500<\/td><\/tr><tr><td>Dividend GPM (15%)<\/td><td>\u2013\u20ac6,225<\/td><\/tr><tr><td><strong>Owner receives<\/strong><\/td><td><strong>\u20ac35,275<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<p>This means that the total tax burden from profit to personal income is approximately <strong>29\u201330%<\/strong> when using dividends.<\/p>\n\n<p><strong>5<\/strong><strong>\ufe0f<\/strong><strong>\u20e3<\/strong><strong> When Is a UAB Favorable from a Tax Perspective?<\/strong><\/p>\n\n<p>A UAB becomes financially convenient when:<\/p>\n\n<p>\u2714 the owner wants a stable salary<br\/>\u2714 hiring employees is planned<br\/>\u2714 the business is growing and profit is withdrawn as dividends<br\/>\u2714 a better image is needed for banks or partners<\/p>\n\n<p><strong>6\ufe0f<\/strong><strong>\u20e3<\/strong><strong> Common Mistakes<\/strong><\/p>\n\n<p>\u274c Assuming that salary and dividends are taxed equally<br\/>\u274c Forgetting that profit tax is paid before dividends<br\/>\u274c Not calculating the total tax burden from profit to personal income<\/p>\n\n<p>\ud83e\udde0 <strong>Brief Conclusion<\/strong><\/p>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Situation<\/strong><\/td><td><strong>Often Most Beneficial<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Low profit, new company<\/td><td>UAB with 0% or 7% profit tax<\/td><\/tr><tr><td>High profit<\/td><td>Dividends<\/td><\/tr><tr><td>Official income needed<\/td><td>Salary<\/td><\/tr><tr><td>Profit reinvested<\/td><td>Retain in the company<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<p>\ud83c\udfaf <strong>Want to Know Your Actual Numbers?<\/strong><\/p>\n\n<p>Every UAB situation is different \u2014 everything depends on profitability, salary amount, and withdrawal model.<\/p>\n\n<p>\ud83d\udc49 <strong>By registering for a detailed consultation, you will receive an individual UAB tax calculation completely free of charge.<\/strong><\/p>\n\n<p>We will show you:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>how much profit tax you will pay<\/li>\n\n\n\n<li>how much salary will cost<\/li>\n\n\n\n<li>how much will remain after dividends<\/li>\n\n\n\n<li>which model is financially best for you<\/li>\n<\/ul>\n\n<p><strong>Register for a free consultation and make decisions based on numbers, not guesswork.<\/strong><\/p>\n\t\t<div data-elementor-type=\"container\" data-elementor-id=\"25030\" class=\"elementor elementor-25030\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2b2c6a0 e-flex e-con-boxed e-con e-parent\" data-id=\"2b2c6a0\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-9faa1d5 e-con-full e-flex e-con e-child\" data-id=\"9faa1d5\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t<div class=\"elementor-element elementor-element-388def7 e-con-full e-flex e-con e-child\" data-id=\"388def7\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3021e3e elementor-widget 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data-id=\"22c844b\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;pulse&quot;,&quot;_animation_delay&quot;:200,&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"elementskit-button.default\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >\t\t<div class=\"ekit-btn-wraper\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/smartaccountai.lt\/paslaugos\/\" class=\"elementskit-btn  whitespace--normal\" id=\"\">\n\t\t\t\t\tPer\u017ei\u016br\u0117ti paslaugas<i class=\"icon icon-right-arrow\"><\/i>\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>A private limited company (UAB) is one of the most popular business forms in Lithuania. It provides greater credibility, a clear structure, and a convenient model for owner compensation. However, many founders typically ask: how much tax will I actually have to pay? In this article, we clearly break down: \u2714 profit tax\u2714 VAT\u2714 owner [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":25608,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":["post-25607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/posts\/25607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/comments?post=25607"}],"version-history":[{"count":1,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/posts\/25607\/revisions"}],"predecessor-version":[{"id":25609,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/posts\/25607\/revisions\/25609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/media\/25608"}],"wp:attachment":[{"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/media?parent=25607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/categories?post=25607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smartaccountai.lt\/en\/wp-json\/wp\/v2\/tags?post=25607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}