Tax incentives are one of the most effective ways to reduce the tax burden and get some of the personal income tax (PIT) paid back. It is important to know what expenses are covered and how to declare them properly.
Benefits available to residents
Residents can reclaim part of their GPT for:
- mortgage interest
- study costs (for yourself, children or spouse)
- life insurance
To benefit from the relief, an annual income tax return GPM311/312 is submitted at the end of the year, showing all the expenses incurred.
What costs are eligible for benefits?
Mortgage interest – concessions
The benefit applies to the first home if the credit agreement is concluded by the due date. It allows part of the interest paid to be reimbursed through the return.
Study costs – concessions
Reimbursable costs include fees for full-time and accredited studies. This can be university or college fees, whether for yourself, your children or your spouse.
Life insurance – benefits
If the contract is for a long-term pension or life insurance, it may be possible to recover part of the premiums.
Conclusion:
Tax incentives can significantly reduce costs, but you need to comply with the declaration procedure and keep all supporting documents: invoices, bank statements, contracts.
Accounting services in Kaunas and throughout Lithuania, as well as other related questions or answers by phone – +37061228888. Our team is ready to help.
