| Abstract [eng] |
In this master’s thesis, based on the Personal Income Tax Law of the Republic of Lithuania, other national legislation, explanations provided by the tax administrator, national case law, and European Union case law, the Lithuanian personal income tax system is analyzed and compared with the personal income taxation models of other European Union member states. The thesis examines the key elements of the Lithuanian personal income tax system—taxpayers, the tax object and base, rates, exemptions, the legal regulation of investment accounts, and the procedures for calculating, declaring, and paying the tax. Special attention is given to the changes in the Lithuanian PIT system that took effect in 2026 and their significance for the consistency and practical application of the entire system. The study found that the Lithuanian personal income tax system is important not only as a means of collecting revenue for the state budget but also as an instrument of social justice and the distribution of the tax burden. An analysis of the changes that took effect in 2026 led to the conclusion that the Lithuanian PIT system has become more oriented toward progressive taxation, the application of the income aggregation principle has been expanded, and the taxation of certain types of income has been standardized. A comparative analysis showed that the Lithuanian PIT system shares similarities with the Latvian and Estonian models but differs significantly from the Swedish system, particularly in terms of taxation methods, tax rate structure, and the application of tax reliefs. The results of the study suggest that the Lithuanian PIT system is being developed consistently; however, to achieve greater clarity and efficiency, the legal regulation of the Lithuanian PIT system could be further improved. |
