Important changes for MB members from 2026
So far, it has been beneficial for MB members to conclude civil service contracts because:
- Income up to €45,000 per year was taxed more favourably than dividends;
- This has allowed more flexibility in withdrawing funds from the company.
From 2026, the income of an MB member from civil contracts will be taxed at progressive rates:
| Annual income (GNI) | Tariff |
| Up to 12 GNI | 15% |
| 12-36 VDU | 20% |
| 36-60 VDU | 25% |
*Maximum drawdown of up to 100 000
The 2026 GNI has not yet been formally set. The Bank of Lithuania’s forecast suggests that it could reach around €2 246 gross.
This would mean that:
| Revenue from civil contracts | Limit € (gross, based on projected GNI) |
| Up to 12 VDUs (15% of GPM) | ~26 952 € |
| 12-36 VDC (20% GPM) | ~26 952 € – 80 856 € |
| 36-60 VDU (25 % GPM) | ~80 856 € – 134 760 € |
If the annual income from civil contracts exceeds €45,000, the MB member will have to register for VAT.
Dividends will only be subject to 15% VAT from 2026-01-01.
This rate will remain unchanged, regardless of the amount.
* Dividends are not included in gross income subject to progressive rates of income tax.
