Declaring the income of the population in Lithuania – in just a few minutes

Lithuania
FinancesPublic servicesTax administration

The State Tax Inspectorate (STI) takes care of the administration of the main taxes in Lithuania. Its database contains almost 2 million of only natural persons considered taxpayers. To administer taxes more efficiently, the STI entrusted Novian Systems to develop a complex personal income tax information system. After making the necessary improvements, the STI can ensure simpler and more convenient collection and processing of data related to personal income tax. The information system, updated with other companies, also makes it easier to submit annual personal income declarations online, taking just a couple of minutes.

Situation

Until the development of the Personal Income Tax Information System (GYPAS) was completed, the requirement to submit a personal annual income tax declaration each spring was a challenge for some taxpayers. For some residents, the process was too complicated, therefore the latter came to the territorial divisions of the State Tax Inspec-torate (STI) all over Lithuania every year seeking aid in filling in the income declaration.

Problem

The GYPAS information system did not have functions and elements in place to auto-mate the collection, processing, and submission of data required for the calculation of personal income tax (PIT). Thus, taxpayers had to fill in income declaration forms themselves. The supplier was selected to create this solution following a public tender, which was won by Novian Systems (which then acted as Algoritmų Sistemos).

Solution

The company Novian Systems updated the STI information system GYPAS, supplementing and developing its functions related to several functions: resident’s income tax declaration, payment and refund control, services for taxpayers, information analysis, issuance of business certificates, and registration of individual businesses.

Preliminary personal income declarations are formed by automating the collection of data from employers, banks, insurance companies, and other legal entities.

The update of the GYPAS, together with the development of the electronic declaration system (EDS), has made it possible to substantially update the e-declaration process. EDS development work was carried out by NRD Systems and UX (user experience) and design work was done by NFQ Technologies on a joint venture basis.

Result

With the implementation of GYPAS information system updates and EDS development and other works, taxpayers can submit an annual income declaration without wasting time, as it takes only a few minutes.

After making the necessary improvements, the STI can ensure simpler and more convenient collection and processing of data related to personal income tax. The new system made it possible to increase the efficiency and accuracy of the STI.