SECONDMENT TO A FOREIGN STATE
Taxation of daily subsistence allowance for foreign secondments from 01/01/2018:
The monthly salary is less than 520 Eur (i.e. the minimum monthly salary 400 Eur multiplied by the factor of 1.3) or the hourly remuneration is less than 3,185 Eur (i.e., the minimum hourly wage of 2,45 Eur multiplied by the factor of 1,3)
If the calculated daily allowance is equal to or less than 50%. the fixed salary (or hourly rate), the daily allowance is not taxed
The monthly salary is equal to or greater than 520 Eur (400x1.3) or the hourly pay is equal to or greater than 3,185 Eur (2.45x1.3)
The total daily subsistence allowance, not exceeding the daily allowance rates of that foreign country approved by the Minister of Finance, shall not be taxed on personal income tax.
SECONDMENT IN THE REPUBLIC OF LITHUANIA
Taxation of daily subsistence allowance for secondments in Republic of Lithuania from 01/01/2018:
The amount of paid daily allowance is more than 50%. fixed monthly salary or calculated on an hourly basis
Amount of daily allowance exceeding 50% the established salary (exceeding the part), combined with the calculated salary, is taxed at 15%. income tax
The amount of paid daily allowance is equal to or less than 50%. fixed monthly salary or calculated on an hourly basis
The total daily subsistence amount, not exceeding the daily allowance rates of the Republic of Lithuania (15% BSI *, i.e. 5,70 Eur (38 Eur x 15%)), is not subject to personal income tax
What kind of salary should be compared to the amount of paid daily allowances for business trips in Lithuania?
The amount of daily allowance must be compared with the remuneration determined in the employment contract
* Basic Social Benefit (formerly MGL) - 38 Eur (from 1 January 2015)
If the business trip in Lithuania takes one day, the daily allowance is equal to 50 per cent of the established amount (the total daily allowance, not exceeding the established daily allowance rates of the Republic of Lithuania, is -15% BSI *, i.e. 5.70 Eur (38 Eur x 15%).
From July 1, 2018 An updated order for daily subsistence allowance and other secondments expenses enters into force - daily allowance rates increase, there is no longer any obligation to write secondments orders.
For example, the daily allowance for traveling to Denmark increases from EUR 57 to EUR 80, but the daily allowance for travel to some African and South American countries is decreasing. The current version of the rules mentions 206 states, and in the new order 148.
If the country is not mentioned, then the general rate of EUR 31 is applied and the specific cities disappear from the list: Riga, New York, etc. - they are subject to the national daily allowance rate.
At the same time, the daily allowance rate is increasing for Lithuania. From 2018 July 1 it rises from 5.8 Eur per day to 15 Eur per day.
There is no point requiring a reduction in daily subsistence allowance of 50% if the trip lasts one day. And for a one-day mission after July 1 it will be possible to pay 15 Eur. Employers may provide in collective or work rules that daily subsistence allowance will not be paid for one day.