Recent updates to the rules governing the completion of the FR0459 declaration introduce important changes for non-permanent Lithuanian residents receiving Class B income. While the form itself remains unchanged, the way income is reported and taxed has been adjusted in line with the personal income tax (PIT) rates applicable from 2026.
A key change is the requirement to split income into separate portions when it exceeds thresholds linked to the national average wage. These thresholds determine which PIT rates apply, meaning that a single payment may now be subject to multiple tax rates. As a result, the same type of income must be declared across several lines using the same income code but with different applicable rates.
This approach increases the importance of accurate monthly tracking, as the applicable PIT rate depends on the total amount of income of the same type received within a given month. Any final tax recalculation will still be performed on an annual basis through the GPM314 declaration.
In practice, these changes may create additional administrative complexity, particularly for individuals receiving larger or irregular payments, such as employment income from foreign companies or income from Lithuanian sources. The introduction of an additional annex listing income types and applicable tax rates provides useful guidance, but also highlights the need for careful application.
Eurofast‘s Take
Overall, while the updates aim to align taxation more closely with income levels, they place greater responsibility on taxpayers to ensure accurate and timely reporting. Early preparation and a clear understanding of the new requirements will be essential to avoid errors and potential compliance risks.
Our team Lithuania can support you with the preparation and submission of FR0459 declarations, ensure correct application of PIT rates, and assist with annual reporting obligations. We help you stay compliant while simplifying the overall process.
For more information, please contact us at [email protected]