Law No XI-176 of 19 February 2009 Amending Articles 17 and 20 of the Law on Income Tax of Individuals of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 25978).
The Law amended the rules of calculation of the tax-exempt amount of income (TEA).
● TEA is calculated only in respect of taxed income of an individual, not the taxed together with the tax-exempt income as stated in the previous edition of the Law.
● Tax-exempt income shall also mean benefits paid upon the expiry or termination of a life insurance contract or a pension accumulation contract, not exceeding the amount of the paid contributions.
The Law also established personal TEA for those, with a limited capacity to work, the level of specific needs or the level of disability LTL 800 or LTL 600 depending on the level of working capacity, special needs or the degree of disability.
The Law shall be applied in calculating the income of 2009 and the succeeding periods as well as in tax returns.