| Abstract [eng] |
Taxation of Persons Engaged in Individual Activities in Lithuania Taxation of persons engaged in individual activities is one of personal income taxation forms. Number of persons engaged in individual activities in Lithuania is constantly increasing. Tax legislation regulating taxation of persons engaged in individual activities is periodically amended therefore it is important to analyse the taxation procedure for persons engaged in individual activities in the historical and current aspects. This Master’s thesis deals with the concept of individual activity established in the tax legislation of the Republic of Lithuania, also evolution and practical problems of taxation of persons engaged in individual activities in Lithuania. The first part discloses evolution of the concept of individual activity, characteristics of individual activity and cases when individual activity is limited by researching the Provisional Law of the Republic of Lithuania on Income Tax of Natural Persons and the Law of the Republic of the Lithuania on Personal Income Tax, as well as practical materials. The second part investigates the evolution of Income Tax of Natural Persons and Personal Income Tax levied on persons engaged in individual activities by analysing legislation, also evaluating the purpose of legislation considering the interpretive letters. This section focuses on the evolution of taxation, chronologically assessing the most important amendments to the Law of the Republic of Lithuania on Income Tax of Natural Persons as well as evaluating the amendments to the superseding Law of the Republic of Lithuania on Personal Income Tax. The third part considers the most relevant procedure for imposing income tax on the income of individuals engaged in individual activities, as well as the choice of the legislator not to recognize income from individual activity of sale of real estate or rental. The procedure for levying income tax on income derived from individual activities and employment relationship is also compared therein. |
