RESOLUTION

RESOLUTION RESOLUTION OF THE SUPREME COUNCIL OF THE REPUBLIC OF LITHUANIA REGARDING THE ASSESSMENT OF TAXABLE PROFIT OF LEGAL PERSONS Pursuing From Article 6 of the Republic of Lithuania Law on Taxes on Profits of Legal Persons, The Supreme Council of the Republic of Lithuania resolves:

1. To establish that, when computing the taxable profit of legal persons, the actual expenses of charities, culture, education, and other affairs for social development, as well as actual expenses associated with financing studies, but not exceeding the amount specified in the Supplement, shall be deducted from the balance profit. (Amended 6 February 1992)
2. Charitable, cultural, educational, and other social- service expenses shall be: 1) gratuitous remittance (transfer) of money or material property, the acquisition and transfer of patents or licences to organizations whose bylaws provide for charitable functions, as well as to institutions of culture, education, science, health care, sports, social security and social welfare which are financed from the State Budget of Lithuania or from local government budgets, provided that said institutions or organizations render no services for the benefit of the legal person remitting (transfering) the money (property); 2) expenses associated with the protection and restoration of historical and cultural monuments; 3) profits received by non-profit organisations and their enterprises which are used for their own needs; 4) expenses associated with medical and social rehabilitation of disabled persons, with the design and production of technical equipment which they are provided with free of charge, and with the provision of the needs of said persons in the spheres of culture and sports; and 5) expenses associated with liquidating the consequences of natural disasters and ecological catastrophes, as well as of epidemics of infectious diseases.
3. The amount of profit remitted according to the procedure established by the Government to officially registered charitable foundations shall be exempt from taxation. (Amended 6 February 1992) VYTAUTAS LANDSBERGIS President Supreme Council Republic of Lithuania Vilnius 31 October 1990 No I-723 SUPPLEMENT TO THE SUPREME COUNCIL OF THE REPUBLIC OF LITHUANIA RESOLUTION No I-723 OF 31 OCTOBER 1990 Maximum Expenses of legal Persons Deducted from Balance Profit when Assessing Taxable Profit ------------------------------------------------------------ |Maximum expenses deducted |from balance profit when com- Categories of legal persons |puting profit tax (percentage |of balance profit) |----------------------------- |for the purposes of| for |charities, educa- |financing |tion, and other af-| studies |fairs of social | |utility | ------------------------------------------------------------ Societies of the blind, the deaf, and other disabled persons, their enterprises and organisa- tions 75* 25 Lithuanian Exile and Political Prisoner union, Lithuanian Abstinence Union, the Red Cross Society, Bishop M. Valancius Temperance Movement, the Culture Fund, the Compassion and Health Fund, the Children's Fund, other organizations and foundations whose main purpose is charity, as well as their enterprises and organizations 75* 25 Other organizations engaged in nonprofit activities (parties, unions, societies, clubs, federa- tions, associations, etc.) and their enterprises and organizations 25 10 Other enterprises 3 5 Institutions of science and studies 3* 97 ________________________________________ * Maximum expenses on charities, culture, education, and other affairs for social development may be increased to the extent that maximum expenses on financing studies are reduced.