How an MB member can correctly withdraw money

An MB (mažoji bendrija, small partnership) member can legally take money out of the company in three main ways: member (manager) remuneration under a civil (services) contract, funds withdrawn "for personal needs", and dividends. Each is taxed differently — remuneration and personal-needs funds trigger "Sodra" (state social insurance) contributions and personal income tax (GPM), while dividends are taxed at 15% GPM and can only be paid out of already-taxed profit. The golden rule: whichever route you choose, every payment must be properly documented and declared — "take the cash and forget it" is not an option.

This article explains when each method fits, how it is taxed, and how to combine them. All rates and thresholds are indicative (2026), so before you decide, verify the current figures at VMI, "Sodra" or the Register of Legal Entities. If you are still setting up your MB, start with the general guide to starting a business in Lithuania.

An MB's account is not your personal wallet: every euro you take out needs a basis — remuneration, a personal-needs payment or a dividend.

Three ways to take money out of an MB: an overview

Before diving into taxes, it is worth naming that an MB member can receive money only on defined grounds:

• Member (manager) remuneration under a civil contract — a regular payment for managing or working in the MB; subject to "Sodra" contributions and GPM.
• Funds "for personal needs" — money drawn from the partnership in advance, reconciled with the member's taxable income at year-end; subject to VSD (state social insurance) and PSD (compulsory health insurance).
• Dividends — a share of profit distributed to members after the financial year; taxed at 15% GPM.

An MB is more flexible than a UAB here: it requires no share capital to set up, and its members can only be natural persons, up to 10 of them. That is exactly why the logic of withdrawing money differs from an ordinary salary in a company — and often confuses beginners.

Member (manager) remuneration under a civil contract: when it fits

If you are the MB manager and also a member, you usually work under a civil (services) contract rather than an employment contract. You can pay yourself member remuneration — the closest equivalent to a "salary". It is subject to GPM and "Sodra" contributions, and the payment is recognised as an MB expense, reducing taxable profit.

In practice this means signing a written civil (services or management) contract and declaring the accrued remuneration and contributions to "Sodra" every month. This method suits you when you want steady, predictable monthly income and want to build social guarantees (sickness, maternity, pension). The downside: it is the costliest monthly-taxed stream, so for very small or irregular income it is not always optimal. Because remuneration is taxed on similar principles to wages, the easiest way to understand the mechanics is the 2026 salary-tax guide and to see how to read a payslip, which shows how GPM and "Sodra" arise from the accrued amount. Always check the exact contribution rates with "Sodra".

Funds "for personal needs": convenient, but VSD/PSD follow

An MB member who does not work under a remuneration contract can draw partnership funds "for personal needs" during the year — like an advance that must be justified at year-end. This money is not "free": for "Sodra" purposes an MB member is treated as a self-employed person, so VSD and PSD are due on the amounts taken.

From July 2026, the "Sodra" contribution base for self-employed persons rises to 90% of taxable income (previously 50%), so the effective social-insurance burden on personal-needs withdrawals grows. Even with low income, PSD has a minimum of about 80.48 EUR per month that must be paid continuously. At year-end, the funds taken "for personal needs" are reconciled with the member's actual taxable income: if you have withdrawn more than the partnership earned and can justify, the difference may be taxed as additional member income. So this method is convenient for flexibility, but it demands disciplined bookkeeping. Because the precise VSD/PSD split and calculation nuances change, verify the current rates and base at "Sodra" and in the salary-tax guide above.

Dividends: 15% GPM on already-taxed profit

Dividends are the share of MB profit that members distribute after the financial year, once the annual accounts are approved. The key nuance: dividends are paid out of already-taxed profit, so the amount is trimmed by two taxes in a row:

• first the MB pays corporate income tax (CIT) on profit — the standard rate is 17%, small companies pay 7%, and qualifying new small companies may pay 0% for the first one or two years (if fewer than 10 employees, revenue up to EUR 300,000 and the company is not part of a group);
• then 15% GPM is withheld from the dividends paid to the member.

Dividends can only be declared when the partnership has distributable profit and has approved its annual financial statements; if the year ended in a loss, you cannot pay them out. The annual financial statements are filed with the Register of Legal Entities by 30 June for the calendar year, and the CIT return with VMI by 15 June; only once the statements are approved can a dividend decision be made. Because of this "double" taxation, dividends are attractive when there is profit but no need for regular remuneration. But they create no social guarantees (no "Sodra" is paid on dividends), so living on dividends alone is risky. For the full picture of MB taxes, see the overview of taxes an MB pays.

When each method fits: how to combine them

In practice, MB members often combine methods. The general logic:

• For steady monthly income and social guarantees — member remuneration under a civil contract.
• For flexible, irregular needs during the year — personal-needs funds (remembering VSD/PSD).
• For taking accumulated profit once a year — dividends (15% GPM after CIT).

Many beginners wrongly think they must pick one method forever. In reality, within the same year you can pay yourself a modest member remuneration each month, draw personal-needs funds when needed, and at year-end, if profit remains, distribute dividends. Which mix pays off best depends on your profit level, cost share and whether you need social guarantees — there is no universal answer, and the "break-even points" are worth calculating on your own numbers. We examine the same question — salary or dividends — in detail in "Salary or dividends: how to pay yourself".

Why documenting and declaring everything matters

The main mistake is taking money from the MB account "without a basis". Every payment must be documented and declared: remuneration as employment-related income, personal-needs funds tied to "Sodra" and shown in the annual return, dividends via a profit-distribution decision and the GPM return. VMI can reclassify undocumented funds and tax them less favourably, so tidy bookkeeping protects you not only from fines but also from costly mistakes. The tax environment also changes — for example, new levies (such as a defence levy) may be introduced — so always confirm the final burden with VMI.

Example: how EUR 10,000 of profit becomes a dividend

Suppose the MB has EUR 10,000 of taxable profit after the year and the member decides to take it as dividends (indicative example, 2026):

1. Corporate income tax (CIT). If the MB meets the small-company conditions, 7% applies: EUR 10,000 × 7% = EUR 700. That leaves EUR 9,300 of distributable profit.
2. Dividend GPM. From EUR 9,300, 15% is withheld: EUR 9,300 × 15% = EUR 1,395.
3. The member receives in hand 9,300 − 1,395 = EUR 7,905.

If no relief applies and the standard 17% CIT is due, the first step would be EUR 1,700 and less profit would remain. For a qualifying newly established small company, CIT can be 0% in the first year — then only 15% GPM trims the dividend. Taking the same profit as remuneration would give different figures ("Sodra" and GPM appear, but CIT disappears), so it is worth calculating both.

Check your numbers with a calculator and official sources

Before paying yourself, model a few scenarios. The remuneration part is easiest to model with the salary calculator — from a gross amount it immediately shows GPM, "Sodra" and the take-home part; the dividend part you can compute by applying CIT and 15% GPM as in the example. Do not forget the deadlines either: the CIT return is filed with VMI by 15 June, and the annual statements with the Register of Legal Entities by 30 June. Always verify current rates, thresholds and filing deadlines at the official sources — VMI and "Sodra" — and company data at the Register of Legal Entities.

Disclaimer: all rates, thresholds and amounts in this article are indicative (2026) and for general understanding only — this is not tax or legal advice. Always agree your specific money-withdrawal plan and the exact current figures with an accountant, or check the VMI and "Sodra" sources.

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