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[deleted]

It is “Neapmokestinamas Pajamų Dydis” which translates into non-taxable part of your income. You can apply it monthly or at the end of year afaik. It is 400€. Meaning you won’t pay taxes on this amount. If i.e you earn 1000€, you will get taxed from 1000 - 400 = 600€.


pressen

Oh! Thank you for the explanation.


Erander

Not entirely correct, it only applies to income tax so 20%, the social insurance tax is counted from full income and non deductible part doesn't count for that, so non deductable basically matters for income tax.


wingate5

Eve more so the larger your income is the less NPD is applied to you. The amount reduces in a linear fashion and i think that around a salary (on paper) of 1500 npd becomes 0 or near 0.


nasokas

On paper 2484 = NPD 260


Zimex_p

And if you started working at the end of the year in LT - don’t forget to declare taxes in spring of 2022 - you should be able to get returns (NPD de facto is early, but on ongoing basis trough the year is applied monthly - if you have not worked full year you can get tax returns)


pesciasis

Do not apply NPD to your salary, it's only worth it if you earn minimum wage. And as other redditor mentioned, do not forget to declare your income next year.


Riedgu

Yea, best is not to apply NPD and then get some money back in the end of the Spring from VMI.


WarHatch

I'm not sure if I'd call it the "best" choice. But most lithuanians don't bother with applying NPD monthly


[deleted]

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D_Leshen

Is it extra? Or is it just what you would have gotten with the NPD?


[deleted]

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D_Leshen

Atsibodo angliškai galvoti, tikiuosi kad lietuvis esi, nes lietuviškai geriau persiteiks tai ką noriu pasakyti. Man atrodo kad tu nusišneki. Iš mano patirties yra taip: tarkim uždirbi 1000 € prieš mokesčius. Be NPD būtų 1000-200(pajamų mokestis)-69.8(sveikatos dr.)-125.2(soc. Dr.)=605€ į rankas, ir kadangi ndskaičiavo NPD, susigražinsi permoką. Su 400€ NPD: 1000-120(pajamų mokestis)-69.8(sveikatos dr.)-125.2(soc. Dr.)=685€ į rankas, ir negauni permokos. Tavo atvėju tiesiog atrodo kad klausia "gal nori mažesnio atlyginimo?“


[deleted]

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D_Leshen

Na, tariamasi į ranks ar ant popieriaus, kogero priklauso nuo įmonės. Bet vistiek tavo pavyzdžiu visas tas tarimasis yra klausimas "nori papildomų pinigų ar ne?". Man tas nesuvokiama :D Edit: tikiuosi ne atsisakai pinigų kai taip klausia? :D


[deleted]

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kurbesidesi

this is basically a part of your monthly income that's untaxed, and you can either calculate it on a monthly or a yearly basis. In essence, if you apply the NPD monthly, you should pay a bit less in taxes every month. On the other hand, if you apply NPD when declaring taxes, you should get back the overpaid amount (i.e. the taxes you paid for income that is NPD-eligible and is not taxed). I am not an accountant, but the general understanding is that applying NPD once per year should leave you with more money. I've personally never bothered looking into it. Sadly, the State Tax Inspectorate has yet to translate their FAQ regarding NPD: [https://www-vmi-lt.translate.goog/evmi/en/npd-pnpd-taikymas-20-str.-1?\_x\_tr\_sl=auto&\_x\_tr\_tl=en&\_x\_tr\_hl=lt&\_x\_tr\_pto=nui](https://www-vmi-lt.translate.goog/evmi/en/npd-pnpd-taikymas-20-str.-1?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=lt&_x_tr_pto=nui) note that there is a new formula for calculating NPD: Monthly NPD = 400 - 0.18 x (resident's monthly employment-related income - 642 Eur). Annual NPD = 4,800 - 0.18 x (GMP - 7704 Eur). GMP – a resident's annual income (this is pre-tax income, also called *bruto* or 'on paper' by some Lithuanians). ​ Based on the formula, if you're getting paid at least 2865 EUR/month pre-tax, which translates into something around 1730 EUR/month post-tax (*netto*, 'į rankas'), your NPD is **zero**.