Tax evasion by foreigners in Lithuania is on the rise
The country has seen an increase in the number of foreigners working as self-employed tax evaders. According to the State Tax Inspectorate (STI), the most frequent jobs of those fleeing from financial responsibility are those of taxi drivers and couriers, news portal LRT.lt reports.
„It is not possible to apply to these taxpayers the measures of administrative liability imposed on Lithuanian taxpayers who do not fulfil the obligation to declare or pay the personal income tax (GPM) due to the difference in the enforcement of the requirements for declaring or paying the tax,“,– the Inspectorate wrote in a letter to the Member of the Seimas, Laurynas Šedvydžius.
According to the data of the VAT Inspectorate, in 2023 there will be 15.8 thousand foreigners engaged in individual activity in Lithuania. Of these, 12.4 thousand submitted income tax returns, but 2.2 thousand did not fulfil their tax obligations. As LRT.lt reports, another 3.3 thousand foreigners did not file value added tax (VAT) returns, although they were obliged to do so.
The data of the VAT authorities for the previous years show that the number of foreigners in Lithuania, both those engaged in individual activity and those who do not pay income tax, is increasing. In addition, it is observed that those engaged in land passenger transport, postal and courier activities, taxi and specialised construction activities are the most frequent VAT evaders.
As of 1 January 2024, a total of 131.5 thousand third-country nationals were employed in Lithuania under an employment contract. More than half of them - 73,000 - work in the transport and storage sector. This is followed by construction (22,000) and manufacturing (almost 13,000).