Official Translation

Official Translation Official Translation REPUBLIC OF LITHUANIA LAW ON TAXES ON PETROLEUM AND NATURAL GAS RESOURCES October 7,

1. No. I – 2944 (as amended by 30 April
2. No. I – 1314.) Vilnius Article
3. Petroleum and gas extracted from the territory of the Republic of Lithuania and its economic zone in the Baltic Sea shall be taxable objects. Article
4. The taxpayers shall be legal and natural persons, who extract petroleum and gas in the territory of the Republic of Lithuania and the economic zone in the Baltic Sea. Article
5. The base rate of the tax is 20 percent of the sale price of extracted petroleum and gas, but no less than the target price set by the Government of the Republic of Lithuania. Article
6. Nine points shall increase the base tax rate for the petroleum and gas extracted from deposits, which have been located or prospected through State funding. If the deposits are found and prospected not solely through State funding, the base rate shall be increased by the additional rate amount of 9 points indicated in the first paragraph, proportionate to the State funds expanded in locating and prospecting of said deposits. Article
7. Taxes shall be paid in advance every quarter, in equal instalments of the annual tax amount, estimated according to the expected amount of petroleum and gas to be extracted, before the 15th day of the first month of the next quarter. At the close of the year, the tax sum shall be recomputed according to the actual amount of the extracted petroleum and gas and the annual computation shall be submitted to the State Tax Inspectorate before February 1st. The additional sum from the annual computation shall be paid by February 15th . Article
8. A tax and an economic sanction equivalent to tenfold the tax amount shall be paid for a concealed amount of extracted petroleum or gas. Article
9. When legal and natural persons having obtained a license to engage in the exploitation of petroleum or gas resources, fail to adequately manage the records on the extracted resources, their license shall be revoked and the tax, which had been paid by them in advance, shall not be refunded. Article
10. Taxes shall be computed, adjusted, collected or refunded in accordance with the Law on Tax Administration of the Republic of Lithuania. Article
11. Failure to pay taxes on time shall result in payment of percent in accordance with the procedure established by the Law on Tax Administration of the Republic of Lithuania. Article
12. Taxes on petroleum and gas resources shall be paid into the |State Budget. Article
13. The Economic sanction funds stipulated in Article 6, shall be exacted into the State Environmental Protection Fund. Article
14. The State Tax Inspectorate along with the Ministry of Environment shall control the validity of the tax computation. Article
15. State Tax Inspectorates shall exact tax arrears and economic sanctions without judicial process. CHAIRMAN OF THE SUPREME VYTAUTAS LANDSBERGIS COUNCIL OF THE REPUBLIC OF LITHUANIA