Money out of your MB in 2026 – which code and what’s left after tax

You are a member of a small partnership (MB) and want to transfer some of what is in the account to yourself. The money in an MB’s account belongs to the partnership, so every transfer needs a basis. It is that basis, not your wish, that decides how much you keep and how much it costs the partnership: in 2026, taxes and contributions take between 15% and 38.73% of the same amount. Below are the four routes, what each costs and what to have in place before you transfer.

A management fee, other services, a share of profit and money drawn for personal needs are each taxed differently. Their effect on the MB’s corporate income tax differs too. The rules below are for an MB member who is a permanent resident of Lithuania.

Above all, do not confuse the right to sign a civil services contract with the duty to register self-employment. A civil contract on its own does not guarantee that the income will be declared under code 77 and escape social insurance contributions.

Why can’t you simply transfer money from the MB to yourself?

Because every payout to a member has its own basis and its own code on the tax return, and the code decides the tax. The main payout codes:

• 77 – an MB member’s fee for managing the partnership and other income from services where no special income code applies;
• 93 – income from self-employment under an individual activity certificate;
• 26 – an MB member’s income from distributed profit;
• 02 – money drawn for personal needs, treated as income related to employment;
• 23 – income from letting real estate;
• 24 – income from letting other property, for example a car.

Profit payouts take code 26. The code follows the true nature of the income, not the tax rate you would prefer.

Several routes can be combined in the same year, but each payout needs its own basis and separate accounting. Repaying a loan or reimbursing MB expenses the member paid out of pocket should not automatically be treated as a fee for services or as a profit distribution either.

Management fee – code 77, no VSD or PSD

An MB member may sign a civil contract with their partnership for services or works. But a member cannot be in an employment relationship with their own MB, and the civil contract must not carry the hallmarks of employment. What counts is the actual substance of the relationship, not just the title of the document.

The fee has to be paid for real services, match the market price and be backed by documents. It helps if the contract describes what the services are, how the fee is calculated, how it is paid and how delivery of the services is confirmed.

A justified fee for services the MB needs for its business is an MB expense and an allowable deduction, provided it is linked to earning income or an economic benefit. Expenses in the accounts and allowable deductions for tax are not the same thing. If the services relate to creating an asset, their value may be included in the asset’s cost.

In 2026, income that is neither from employment nor from self-employment is taxed at 15% personal income tax (GPM) up to 12 times the national average wage (VDU), or €27,745.80. This ceiling is shared by the whole income group set in the law, so other income, rental income for example, uses it too. The part above it is taxed at the main progressive rates based on total annual income:

• up to 36 VDU (€83,237.40) – 20%;
• the part from 36 to 60 VDU (up to €138,729) – 25%;
• the part above 60 VDU (€138,729) – 32%.

When working out which bracket applies, other aggregated annual income counts too, including the part taxed at 15%. You cannot give each source of income its own annual thresholds.

For example, a member receives €24,000 for management and has no other income using the 12 VDU ceiling. GPM: €24,000 × 15% = €3,600. After GPM, €20,400 remains. No state social insurance contributions (VSD) or compulsory health insurance contributions (PSD) are charged on this management fee. The minimum PSD contribution remains separate (€80.48 a month in 2026, if the member is not insured on another basis), as does the VAT threshold.

All of a member’s contracts with the MB – up to €100,000 a year

The total value of services and works under all civil contracts a member has signed with their own MB cannot exceed €100,000 per calendar year. The management fee counts towards the cap; the State Tax Inspectorate (VMI) says rent the member charges the MB for their property should be counted as well. It is one shared cap, not a separate limit for each contract.

For example, €60,000 for management and €50,000 for consulting would make €110,000. The amount above the cap is treated as a profit distribution or as money drawn for personal needs, with their respective tax and deduction rules. Self-employment income from services to your own MB also counts towards this cap.

I provide services to my own MB – is that already self-employment?

A member may manage the partnership and provide it with other services at the same time, but each activity has to be assessed on its own. A civil contract and self-employment are not alternatives: the contract records what the parties agreed, while registering self-employment formalises an activity carried out independently. VMI’s position is that an activity which shows the signs of self-employment must be registered.

There are three signs. Independence – how the person organises the activity, makes decisions and bears the risk. Continuity – whether the services are provided on an ongoing basis, or the circumstances show an intention to carry on. Pursuit of economic benefit – whether the activity is carried out to earn money.

A one-off, occasional service is not necessarily self-employment. But there is no amount below which registration is not required – the circumstances are weighed as a whole.

For example, regularly and independently running the MB’s advertising, programming or consulting calls for an assessment against the signs of self-employment. The title of the contract does not change that assessment. Code 77 taxation cannot be chosen simply because the customer is the person’s own MB. Nor can every payout under a civil contract automatically be lumped into one code 77 group.

If the services count as self-employment, the self-employment rules on GPM, VSD, PSD and accounting apply. In 2026, taxable self-employment income up to €42,500 qualifies for a GPM credit: up to €20,000 you effectively pay 5%, after which the rate rises to 20%. Above the €42,500 threshold the credit no longer applies and the income is assessed under the main progressive taxation rules.

Services a member sells to their MB independently must also be distinguished from work the member does on the strength of membership, fulfilling the partnership’s obligations to its clients. VMI has examined the cases of audit and medical firms: there, the services members provided to clients were treated as MB activity carried out on the basis of membership, and codes 02 or 26 were discussed for the payouts. That does not mean every piece of client-related work is assessed the same way. But not everything the MB earns can automatically be turned into a member’s fee under a services contract.

Share of profit – code 26, but only after corporate income tax

A share of profit allocated to a member is taxed at 15% GPM. The tax-exempt amount (NPD) does not apply to this income, and no VSD or PSD is charged on the payout itself. A profit distribution is not an MB operating expense and does not reduce taxable profit.

The MB’s own corporate income tax comes first. In 2026 the standard rate is 17%, and the reduced rate is 7% if the MB meets the conditions in the law, among them that its income for the tax period does not exceed €300,000. A newly formed MB that meets the statutory conditions also qualifies for a 0% rate in its first tax periods. The reliefs depend on the conditions in the law, including restrictions on related entities, so we check them against your MB’s figures before any profit is distributed.

For example, accounting profit of €10,000 equals taxable profit, and all the profit left after corporate income tax is distributed to the member.

GPM is calculated on the amount left to distribute after corporate income tax, so the rates cannot simply be added together. The total burden in this example is 15%, 20.95% or 29.45% of the original profit.

Profit can also be distributed for a period shorter than the financial year. That requires financial statements for the period, a members’ decision and a check against the statutory restrictions. If more was paid out for the shorter period than the member’s share of the year’s profit, the difference must be returned within 30 days of the annual financial statements being approved. The same rule applies to money drawn for personal needs.

The bank balance is not the amount of distributable profit.

Money for personal needs – code 02 and the 90% base

Code 02 covers money a member draws for personal needs, treated as income related to employment. No employment contract is signed for it. The member receives the full amount drawn: this is class B income, so the member pays GPM on the whole payout with their annual return, at 20%, 25% or 32% depending on annual income. The annual NPD may apply.

VSD and PSD on a code 02 payout are always paid by the MB itself – they are not deducted from the member’s amount. From 1 January to 30 June 2026 the contribution base was 50% of the amount drawn; from 1 July 2026 it is 90% of the amount drawn. The VSD rate is 13.83%, PSD is 6.98%, and with the additional 3% pension saving the VSD rate is 16.83%. These contributions provide the corresponding social insurance; the insurance record and benefits depend on insured income and the other conditions set in law. The annual ceiling on the social contribution base for MB members is €99,422.45 (43 VDU).

For example, €1,000 is drawn from July 2026. The member does not save extra for a pension, no NPD applies, the GPM rate is 20% and the contribution ceiling has not been reached.

As allowable deductions, the MB counts the amount on which the member’s VSD contributions are calculated under the VSD law – below the ceiling, that is €500 out of €1,000 in the first half of 2026 and €900 from July 2026 – plus the VSD and PSD contributions it paid itself. Only the additional 3% pension saving contribution is not deductible.

The same €1,000 – 15% or 38.73% in tax

Compare: €1,000 of profit left after corporate income tax, paid out as a share of profit (26), costs €150 in GPM – the member keeps €850, and there are no contributions for either the member or the MB. The same €1,000 drawn for personal needs (02) from 1 July 2026 reaches the member in full, €800 is left after GPM, and the MB pays a further €187.29 in contributions – €387.29 in all. The difference is not the rate but the basis: a share of profit needs financial statements and a members’ decision, while the contributions on a code 02 payout provide social insurance, which a share of profit does not.

What to do before you transfer

Before transferring money, you need to establish what it is being paid for, which document it rests on, which code the payout will be declared under and how much will go on tax. If you are paying for services other than management, you also have to assess whether the activity shows signs of self-employment.

• Decide the basis – management, services, share of profit or 02 – before every transfer (you, with us).
• For management – a civil management contract with the fee calculation and acceptance reports, before the first payout (you).
• For ongoing services – register self-employment before the first invoice to the MB (you).
• For a share of profit – financial statements and a members’ decision; only the amount left after corporate income tax is distributed (we prepare, you sign).
• For code 02 payouts – the MB pays VSD and PSD on 90% of the amount from 1 July 2026 (we calculate); you pay GPM on the full amount with your annual return, plus €80.48 PSD a month if you are not insured elsewhere (you).
• Keep an eye on the €100,000 cap for all contracts with the MB together and the €45,000 VAT threshold for independent services (we track the running total).
• GPM312 by 15 February 2027 (we); GPM311 and the GPM payment by 3 May 2027 (you, with our figures).

We recommend paying a management fee under a contract first (code 77): it is an MB expense and reduces corporate income tax, with the share of profit distributed after the annual statements. The exception is a newly formed MB that meets the conditions for the 0% corporate income tax rate in its first two tax periods: there is no corporate income tax, so it pays to take everything as a share of profit (26), taxed at 15% GPM with no progressive rate. Choose code 02 when the member needs social guarantees and a pension record – only these contributions provide them.

Check your own situation: write to us with how many members the MB has, who manages it and how much you want to pay out, and we will tell you the code and the tax. More about our tax consultations and accounting for an MB.

Frequently asked questions

Does the management fee count towards the €45,000 VAT threshold? It can – VAT is assessed separately from GPM. Fees for services provided independently may count towards an individual’s VAT registration threshold even if, for GPM purposes, they are not self-employment income; code 02 and 26 payouts are not in themselves consideration for an economic activity for VAT. The €45,000 threshold is measured over the previous or the current calendar year and is a different limit from the €100,000 cap on civil contracts – more in our article on the SME scheme in Lithuania.

I let my car or premises to the MB – which code? Letting real estate – code 23: for GPM purposes it is not treated as self-employment. Letting a car or other movable property – code 24, when it is not letting as part of self-employment; here the nature of the activity and the signs of self-employment need assessing. VMI says rent should also be counted when calculating the €100,000 cap.

I am employed elsewhere – do I still pay €80.48 PSD? Not necessarily. Whether the minimum monthly PSD contribution has to be paid every month depends on insurance on another basis and the exceptions in the law. Being insured elsewhere does not in itself remove the annual PSD on payouts for personal needs.

The manager is not an MB member – how is their fee taxed? Code 89 applies. This is class A income: the MB withholds, pays and declares the GPM, at the main annual rates of 20%, 25% and 32% in 2026. Social contributions apply to the fee too: the combined rate is 15.70%, or 18.70% with the additional 3% pension saving.

Who declares MB payouts, and when? For a permanent resident of Lithuania who is an MB member, code 02, 26 and 77 income is class B: the MB declares the payouts on form GPM312, and the member declares the income on GPM311 and pays the GPM. For 2026, the GPM312 deadline is 15 February 2027; the member’s deadline for GPM311 and paying the GPM is 3 May 2027.