VMI explains investment accounts and mid-year progressive rates

The State Tax Inspectorate has advanced its personal-income-tax commentary (Gyventojų pajamų mokesčio įstatymo komentaras) to the edition of 4 November 2026VMI, issued under VMI prie FM letter of 2026-11-04VMI No (18.18-31-1 Mr) RTD-145VMIVMI. The edition adds two newly prepared commentariesVMI — on the qualifying conditions and exclusions of an "investicinė sąskaita" (GPMĮ 2 straipsnio 38¹ dalis)VMI and on applying progressive rates mid-year at the resident's request (GPMĮ 23 straipsnio 7 dalis)VMI — and carries the extended statutory list of concept sources in Article 2(39)VMI.

An investment account is a resident's account meeting three cumulative conditions: it is held with a financial institution (a bank, brokerage or similar), a payment-services provider or their branch or permanent establishment in Lithuania, another EEA state, an OECD state or a state with an applicable double-taxation treaty; the money in it is used exclusively for investment in the qualifying financial products named in the law (shares, bonds, collective-investment units and others listed in GPMĮ 12¹(1)); and the choice of the regime is reported to the tax administrator in the set procedure and time limits (the declaration rules of VMI order No VA-107 of 19 December 2024, via the annual GPM311 return after the tax year). Deposits, savings accounts and securities accounts cannot be declared as investment accounts, nor can an account into which the resident receives employment, individual-activity or other income spent on daily personal needs.VMI The regime covers only the declaring resident.VMI

Under the new Article 23(7) commentary, a resident receiving periodic A-class income may ask the withholding agent to apply the progressive tariffs during the year instead of waiting for annual settlementVMI; the agent then looks only at the payments it makes itself, not at the resident's income from other sourcesVMI. The worked example uses the 2026 tariffsVMI — 15 percent on the rental part up to 12 VDU (27,745.80 EUR)VMI, 20 percent up to 36 VDU (83,237.40 EUR)VMI, 25 percent from 36 to 60 VDU (138,729 EUR)VMI, 32 percent above 60 VDUVMI. With monthly rent of 3,000 EUR and wages of 5,000 EUR, the 12 VDU rent boundary is crossed in October, so the rent slice above it moves to 20 percent and, once the wage share up to the 36 VDU boundary is exhausted, the wage slice above it moves to 25 percent; November and December payments are withheld at the new rates.

The consolidated Article 2(39) text now also refers to the Pelno mokesčio įstatymas and to the laws regulating financial markets and financial services as sources of the concepts used in the personal-income-tax law (amended by the law of 19 December 2024).

Legal basis: GPMĮ 2 straipsnio 38¹ dalis and 23 straipsnio 7 dalis as explained in the 2026-11-04 edition of the Gyventojų pajamų mokesčio įstatymo komentaras (VMI prie FM 2026-11-04 raštas Nr. (18.18-31-1 Mr) RTD-145)VMIVMI, and 2 straipsnio 39 dalis as amended on 2024-12-19VMI.