How is the income tax on savings account interest calculated?

The payment of interest is regulated by the Personal Income Tax Law of the Republic of Lithuania. The amount of interest is not taxable if the amount of interest received during the tax period does not exceed 500 euros. Income tax is calculated from the amount of interest received during the tax period, which exceeds the amount of 500 euros. Among the cases where the income tax is paid for the entire amount of the above-mentioned interest, the State Tax Inspectorate indicates those cases where the interest income was received by those residents whose permanent residence is in the target territory. Taking into account the fact that the payment of interest income is subject to the rules laid down in legal acts, please use the information provided here as an informational notice only. This information cannot be considered as tax advice. In order to assess your tax obligations, you must assess your situation individually, and if necessary, familiarize yourself with the information provided by the State Tax Inspectorate, which can be found at www.vmi.lt. On the above-mentioned website, you can also find contacts with whom you can contact the tax inspectorate for advice on relevant issues.