Best Accounting & Auditing Lawyers in Marijampolė

About Accounting & Auditing Law in Marijampolė, Republic of Lithuania

Accounting and auditing in Marijampolė operate under national Lithuanian law, harmonized with European Union directives. The core framework is set by the Law on Accounting, the Law on Financial Statements of Entities, and the Law on Auditing of Financial Statements. Businesses prepare financial statements using Lithuanian Business Accounting Standards or International Financial Reporting Standards depending on their status. Public interest entities use IFRS, while most small and medium entities apply Lithuanian standards.

Audits are conducted in line with International Standards on Auditing as adopted in Lithuania. Oversight of auditors and accounting standards is performed by national supervisory authorities and the Lithuanian Chamber of Auditors. Filing of annual financial statements occurs through the Register of Legal Entities managed by the national Centre of Registers. Tax administration is handled by the State Tax Inspectorate and payroll social insurance by the State Social Insurance Fund Board known as Sodra.

Marijampolė-specific aspects are mainly practical rather than legal. Municipal authorities set certain local taxes and fees within national limits, such as real estate tax rates and fixed fees for business certificates for certain self-employed activities. Day-to-day interactions for accounting, taxes, VAT reporting, and payroll remain national and electronic, which means businesses in Marijampolė use the same systems and deadlines as elsewhere in Lithuania.

Why You May Need a Lawyer

Choosing the right reporting framework and accounting policies. A lawyer can help determine whether your entity must apply Lithuanian standards or IFRS, draft accounting policies compliant with the Law on Accounting, and align internal rules with statutory requirements.

Starting or restructuring a business. Selecting a legal form, drafting articles, shareholder agreements, and director resolutions affects bookkeeping methods, profit distribution, and audit obligations.

Mandatory audits and auditor relationships. If your company crosses statutory thresholds, receives public funds, or is a public interest entity, you may need an audit. Lawyers assist with auditor appointment, independence questions, engagement letters, liability limits, and disputes over audit findings.

Tax compliance and disputes. VAT registration, i.MAS reporting, transfer pricing, and corporate income tax can trigger queries from the State Tax Inspectorate. Legal counsel helps with rulings, audits, objections, appeals, and penalty mitigation.

Payroll and employment issues. Terminations, bonuses, benefits, and cross-border staffing must be reflected correctly in accounting and payroll. Legal advice ensures compliance with labor and tax laws and reduces exposure.

Grants and public procurement. Entities receiving EU or municipal funding face heightened documentation and audit requirements. Lawyers review eligibility, cost allocation, and post-award compliance.

Insolvency risk and director duties. Lithuanian law imposes duties on management to act when a company nears insolvency. Legal guidance helps assess going concern, prepare recovery plans, and avoid personal liability.

Mergers, acquisitions, and due diligence. Counsel coordinates financial due diligence, identifies accounting risks, drafts warranties and indemnities, and structures transactions for tax efficiency.

Data protection and recordkeeping. Accounting data contains personal information. Lawyers help align retention and processing practices with GDPR and national archiving rules.

Local Laws Overview

Accounting framework. The Law on Accounting sets bookkeeping, document retention, language, and currency rules. Primary records are kept in Lithuanian and in euro. Bilingual records may be used internally, but filings to authorities must follow Lithuanian requirements. Entities adopt Lithuanian Business Accounting Standards unless IFRS is required or elected.

Financial statements and filing. The Law on Financial Statements of Entities sets what must be included in annual and, where applicable, consolidated statements. Management prepares statements for shareholder approval, then files approved sets to the Register of Legal Entities within statutory deadlines. Micro and small entities may use abridged formats if eligible.

Audit requirements. The Law on Auditing of Financial Statements defines when audits are mandatory. Public interest entities and entities exceeding size thresholds based on revenue, assets, and employees require an audit. Auditors must be independent, licensed, and follow International Standards on Auditing. Public interest entities have additional requirements such as audit committee oversight and auditor rotation.

Tax and VAT. Corporate income tax and personal income tax rules determine expense deductibility, thin capitalization, loss carryforward, and withholding. VAT registration is mandatory once a statutory turnover threshold is reached. VAT return data is reported via national e-systems. Intra-EU trade uses reverse charge and EC sales listings where applicable.

Electronic reporting. Lithuania operates the i.MAS system. i.SAF requires periodic submission of VAT invoice data ledgers by VAT-registered entities. i.VAZ covers consignment note data for transported goods. SAF-T may be requested by the State Tax Inspectorate for audit purposes. Businesses must maintain accounting software and data structures capable of producing these files.

Payroll and social insurance. Employers register with Sodra, withhold personal income tax, pay social contributions, and submit monthly reports. Payroll entries must reflect labor law compliance, minimum wage rules, and benefits taxation.

AML obligations. Auditors and certain accounting service providers are obliged entities under anti-money laundering rules. They must perform customer due diligence, maintain risk assessments, and report suspicious activity to the Financial Crime Investigation Service.

Recordkeeping and retention. Accounting documents and supporting records must be retained for statutory periods, typically several years, and be retrievable for inspections. Electronic archiving is permitted under specific conditions.

Local municipal aspects in Marijampolė. The municipality sets certain local taxes and fees within national ranges, including real estate tax rates and fixed fees for business certificates for specific self-employed activities. Companies owning real estate or operating under municipal permits should verify the current local rates and payment schedules.

Frequently Asked Questions

Which accounting standards will my company use in Marijampolė?

Most small and medium entities use Lithuanian Business Accounting Standards. Companies listed on a regulated market, certain financial institutions, and other public interest entities must use IFRS. Some companies may voluntarily adopt IFRS. Your legal adviser and accountant can help you choose the correct framework and document the decision.

When does a statutory audit become mandatory?

An audit is mandatory for public interest entities and for entities that meet statutory size thresholds based on revenue, total assets, and average number of employees for a financial year. Some entities must be audited due to sector-specific rules or because they receive public funds. Because thresholds can change, verify your status each year.

What are the deadlines for preparing and filing annual financial statements?

Management prepares financial statements after year-end for shareholder approval, then files the approved set with the Register of Legal Entities via the Centre of Registers within deadlines set by law. The exact timeline depends on your entity type. Missing deadlines can lead to fines and may restrict dividend distributions.

Can I keep accounting records in English?

Primary accounting must comply with the Law on Accounting, which requires Lithuanian language and euro as the accounting currency. Bilingual records can be kept for internal purposes, but official submissions and inspections require Lithuanian. Many firms operate with bilingual documentation and translate when filing.

Do I need to register for VAT and what systems will I use?

You must register for VAT when your taxable turnover exceeds the statutory threshold or earlier if you choose to register. VAT payers submit periodic returns and invoice ledger data through the i.SAF module of the i.MAS system. Cross-border supplies require additional listings and correct application of place-of-supply rules.

What is i.MAS, i.SAF, i.VAZ, and SAF-T?

i.MAS is Lithuania’s electronic tax reporting platform. i.SAF is the VAT invoice data ledger submitted periodically by VAT payers. i.VAZ covers electronic consignment note data for transported goods. SAF-T is a standardized data file that the State Tax Inspectorate can request during audits, generated from your accounting system.

How are auditors appointed and can we change auditors?

Auditors are appointed by the shareholders or the supervisory body according to your statutes. The engagement is formalized in writing, covering scope and independence confirmations. You may change auditors subject to legal and contractual terms. Public interest entities have specific rules on auditor rotation and audit committee involvement.

What are the penalties for late filing or non-compliance?

Penalties can include monetary fines, late-payment interest, restrictions on dividend payouts, and heightened audit scrutiny. For tax issues, the State Tax Inspectorate may assess additional tax, interest, and fines. For audit and filing failures, corporate officers can face administrative liability. Early corrective action and voluntary disclosure often reduce penalties.

Are there special rules for branches and non-profits?

Branches of foreign companies must keep local accounts for Lithuanian activities, comply with VAT and payroll rules, and may have specific filing requirements. Non-profit entities follow tailored accounting standards and have distinct reporting and audit triggers, especially when receiving public funds or donations.

How are local Marijampolė taxes handled in accounting?

Real estate tax and certain local fees are set by the Marijampolė Municipality within national ranges. If you operate under a municipal business certificate regime, the fixed fee is determined locally. These amounts must be accrued and expensed in your accounts following the accrual principle and paid according to municipal schedules.

Additional Resources

State Tax Inspectorate under the Ministry of Finance known as VMI. Handles tax registration, VAT, corporate income tax, and electronic reporting through i.MAS.

Register of Legal Entities at the State Enterprise Centre of Registers. Receives annual financial statements and maintains company records.

State Social Insurance Fund Board known as Sodra. Manages payroll reporting and social insurance contributions.

Lithuanian Chamber of Auditors. Oversees audit practitioners and provides guidance on auditing standards and ethics.

National authority supervising audit, accounting, property valuation, and insolvency management. Publishes accounting standards and oversight guidance.

Financial Crime Investigation Service. Receives anti-money laundering reports and provides AML guidance for obliged entities like auditors and certain accountants.

Bank of Lithuania. Regulates financial institutions and issues sector-specific reporting rules where applicable.

Marijampolė Municipality Administration. Sets local rates for real estate tax and business certificate fees and provides local business information.

Enterprise Lithuania and other business support agencies. Offer practical guidance on starting and operating a business in Lithuania.

Next Steps

Map your obligations. Identify your legal form, potential audit triggers, VAT status, payroll obligations, and whether you must use Lithuanian standards or IFRS.

Set policies and systems. Approve accounting policies in writing, choose compliant accounting software capable of producing i.SAF, i.VAZ, and SAF-T files, and implement internal controls.

Build your compliance calendar. Note deadlines for VAT returns, payroll submissions, corporate income tax, financial statement approval, and filing to the Register of Legal Entities.

Engage local professionals. Retain a licensed accountant in Lithuania and, if needed, a statutory auditor. Consider a lawyer experienced in accounting and tax law to review contracts, policies, and complex transactions.

Prepare documentation. Maintain complete supporting documents for revenue, expenses, inventory, assets, transfer pricing, and grants. Ensure records are in Lithuanian or can be translated for authorities.

Assess risks early. If facing cash flow stress, rapid growth, or cross-border transactions, seek legal advice on tax planning, VAT place-of-supply, and insolvency prevention duties.

Stay updated. Laws and thresholds change. Monitor guidance from the State Tax Inspectorate, the Chamber of Auditors, and national accounting authorities, and review municipal announcements for Marijampolė-specific fees.

This guide provides general information only and is not legal advice. For tailored assistance in Marijampolė, consult a lawyer and a licensed accounting professional.