MB or individual activity in 2026: where do you keep more?
An individual activity pays GPM with the IV credit plus Sodra – VSD 12.52 % and PSD 6.98 % on 90 % of the profit. An MB that pays all its profit to the member pays corporate tax (7 % with income up to €300,000; a new MB that qualifies pays 0 % in its first two tax periods) and 15 % GPM on the payout, with no Sodra contributions.
Updated 21 October 2026 · Sources: VMI: income tax rates from 2026, Sodra: contributions of the self-employed, 2026, VMI: corporate tax from 2026, VMI: the 7 % rate, VMI: the 0 % rate
Individual activity
GPM with the IV credit, VSD and PSD
- Taxes
- €11,393 · 28 % of profit
- Left for you
- €28,608
Small partnership (MB)
Corporate tax 7 % and 15 % GPM on the profit paid out
- Taxes
- €8,380 · 21 % of profit
- Left for you
- €31,620
Small partnership (MB): €3,013 more left a year.
Good to know
- The MB is counted as if the whole year’s profit were paid to the member as distributed profit (dividends). Profit can be distributed once the annual financial statements are approved.
- Withdrawals for personal needs (code 02) and fees under a service contract (code 77) are taxed differently and are not modelled here. Rūta works them out in the app from your bank statement.
- The 0 % corporate tax applies to newly registered entities in their first two tax periods when the income of each is at most €300,000, the members are natural persons only and the activity is not suspended. Above €300,000 the rate is 17 %.
- Uses the 2026 rules. Above €42,500 of taxable income the IV credit no longer applies and the income is added to your other income of the year (20 %, 25 % or 32 %) – the calculator looks at the IV income only.
- Sodra contributions are capped at 43 average wages – €99,422.45 a year. VSD 12.52 %; with the extra pension saving, 15.52 %.
- If you are not covered by health insurance otherwise (e.g. as an employee), you pay at least €80.48 PSD every month.
- An MB files annual financial statements with Registrų centras, plus PLN204 and GPM312 – more work than an IV.
- This is an estimate, not tax advice.
Rūta does the books for both IV and MB
She works out your real taxes from the bank statement and prepares every declaration.
FAQ
Which is cheaper, an individual activity or an MB?
It depends on the profit and how you take the money out. With a small profit the IV credit brings income tax down to about 5 %, but Sodra contributions stay. An MB paying out profit as dividends pays no Sodra on them. Enter your figures to see the difference.
Does an MB member pay Sodra on dividends?
No – VSD and PSD are not charged on distributed profit. They are paid on withdrawals for personal needs. If you are not health-insured otherwise, the minimum PSD is paid every month.
What is the MB corporate tax rate in 2026?
The standard rate is 17 %. With income up to €300,000 in the tax period it is 7 %. A newly registered MB that meets the conditions pays 0 % in its first two tax periods.
Which declarations does an MB file?
The corporate tax return PLN204, GPM312 for payments to members, the annual financial statements for Registrų centras and, as a VAT payer, VAT returns. Rūta prepares them; you check and submit.