Official translation LAW ON AMENDING LAW ON TAX ON PETROLEUM AND NATURAL GAS RESOURCES 7 October 1992 No I-2944 Vilnius (New version 20 May 2003 No IX-1564) Article 1 New Version of the Law of the Republic of Lithuania on Tax on Petroleum and Natural Gas Resources The Law of the Republic of Lithuania on Tax on Petroleum and Natural Gas Resources shall be amended and set forth to read as follows: “LAW OF THE REPUBLIC OF LITHUANIA ON TAX ON PETROLEUM AND NATURAL GAS RESOURCES Article
- Object of Tax The object of tax on petroleum and natural gas resources shall be petroleum and natural gas extracted in the territory of the Republic of Lithuania and its economic zone in the Baltic Sea. Article
- Payers of the Tax The payers of the tax on petroleum and natural gas resources shall be Lithuanian and foreign taxable units (within the meaning used in the Corporate Tax of the Republic of Lithuania) and natural persons extracting petroleum and natural gas in the territory of the Republic of Lithuania and its economic zone in the Baltic Sea. Article
- Tax Base
- The tax on petroleum and natural gas resources shall be calculated on the basis of the average sale price at the place of extraction per ton of the petroleum and natural gas extracted during the previous tax period.
- Where the extracted petroleum is used for own needs, the tax on petroleum and natural gas resources shall be calculated on the basis of the average sale price at the place of extraction per ton of the petroleum and natural gas extracted during the previous tax period
- Where the tax on petroleum and natural gas resources cannot be calculated in the manner set in paragraphs 1 and 2 of this Article, the tax on petroleum and natural gas resources shall be calculated on the basis of the average sale price in the previous tax period per<0} ton of the extracted petroleum and natural gas at the place of extraction, as calculated and announced by the Lithuanian Department of Statistics. Article 4.Tax Rates
- The amount of tax on petroleum and natural gas resources shall be comprised of the base rate of tax and the compensatory rate of tax on petroleum and natural gas resources. Petroleum and natural gas extracted from all deposits shall be taxed at base rate of tax on petroleum and natural gas resources. Compensatory rate of tax on petroleum and natural gas resources shall be applied to the petroleum and natural gas extracted from the deposits which have been prospected for or prospected for and explored or only explored using State funds. Compensatory rate of tax on petroleum and natural gas resources when applied to the petroleum and natural gas extracted from the deposits which have been prospected for or prospected for and explored or only explored using not only State funds shall be reduced in proportion to the share attributable to funds other than State funds.
- A 20 per cent base rate of tax on petroleum and natural gas resources shall be established for petroleum and natural gas from deposits extraction at which began prior to 1 July
- For petroleum and natural gas from deposits extraction at which began after 1 July 2003 the rate of tax on petroleum and natural gas resources shall be established in the Annex to this Law taking into account the place of the deposits and the scope of extraction.
- A 9 per cent compensatory rate of tax on petroleum and natural gas resources shall be established for petroleum and natural gas from deposits prospected for and explored with State funds.
- For petroleum and natural gas from deposits extraction in which was started before 1 July 2003 and ¾ or more petroleum resources have been extracted the base rate of tax on petroleum and natural gas resources shall be established in accordance with the Annex to this Law.
- The taxpayer exploiting the deposits, the petroleum and natural gas extracted at which is subject to the base rate of tax on petroleum and natural gas resources prescribed in paragraph 2 of this Article, shall have the amount of tax calculated at the base rate of tax on petroleum and natural gas resources reduced in the manner prescribed by Article 5 of this Law by 50 per cent of the amount of the expenses incurred by performing during the calendar year the works of prospecting for and exploration of new deposits, but by not more than 50 per cent of the amount of tax calculated in the tax returns during the tax periods of the calendar year at the base rate of tax on petroleum and natural gas resources established in paragraph 2 of this Article. Article
- Calculation and Payment of Tax
- The tax period of tax on petroleum and natural gas resources shall be a calendar quarter.
- The tax on petroleum and natural gas resources shall be calculated according to the amount of petroleum and natural gas actually extracted during the calendar quarter, except in cases where base rates of tax on petroleum and natural gas resources established in the Annex to this Law are applied according to this Law to the extracted petroleum and natural gas. In such cases tax on petroleum and natural gas resources shall be calculated on the basis of ¼ of the amount of petroleum and natural gas which is planned to be extracted during the calendar year, but not less than the amount of petroleum and natural gas extracted within the previous calendar year.
- The petroleum and natural gas resources tax return for the tax period must be filed not later than by the 25th day of the first month of the following calendar quarter.
- The amount of the tax on petroleum and natural gas resources calculated for the tax period must be paid by the deadline established in paragraph 3 of this Article.
- At the end of the year the tax payer must file, by the 25th day of April of the following calendar year, together with the petroleum and natural gas resources tax return of the last tax period (first quarter), the petroleum and natural gas resources tax return of the previous calendar year (four tax periods of the calendar year). In the filed petroleum and natural gas resources tax return of the previous calendar year the tax payer must recalculate the amount of tax on petroleum and natural gas resources according to the amount of petroleum and natural gas actually extracted during the year. The additional amount of tax calculated based on the annual return shall be paid by the deadline for filing the annual return set in this paragraph. The annual return shall be filed together with the list of the performed works of prospecting for and exploration of new deposits as well as the estimate of related expenses of the works. The list of performed works of prospecting for and exploration of new deposits shall be subject to approval by the Geological Survey of Lithuania under the Ministry of Environment.
- The forms of returns of tax on petroleum and natural gas deposits, the information required to be presented therein and the manner of filling out thereof shall be established by the Central Tax Administrator. Article
- Tax Calculation Control The State Tax Inspectorate under the Ministry of Finance together with the Ministry of Environment and Lithuanian Geological Survey under the Ministry of Environment shall exercise control over correct calculation of tax. Article
- Liability for Violation of the Law
- Tax and a penalty equal to 10 times the amount of the tax shall be payable for the concealed amount of the extracted petroleum or natural gas.
- In case of failure to timely pay the tax on petroleum and natural gas resources and the imposed fine the late payment charges shall be assessed according to the procedure established in the Law on Tax Administration. Article
- Tax Recovery and Refund
- The tax on petroleum and natural gas resources that has not been timely paid, fines, late payment charges shall be recovered according to the procedure established in the Law on Tax Administration.
- The overpaid amount of tax on petroleum and natural gas resources shall be refunded/included according to the procedure established in the Law on Tax Administration. Article
- Inclusion of the Tax
- The tax on petroleum and natural gas resources shall be included in the State Budget.
- The fine established in Article 7 of this Law shall be included in the State Budget and used in the manner prescribed by legal acts for financing the Environment Protection Support Programme.” Article
- Entry into Force of the Law This Law shall enter into force on 1 July
- I promulgate this Law passed by the Seimas of the Republic of Lithuania. RESPUBLIKOS PREZIDENTAS ROLANDAS PAKSAS Annex to Law of the Republic of Lithuania No. IX-1564 of 20 May 2003 BASE RATES OF TAX ON PETROLEUM AND NATURAL GAS RESOURCES Inland deposits Extraction from the deposit per year (thou tons) Base rate of tax on petroleum and natural gas resources in per cent up to 10 2 10–25 4 25–50 6 50–75 8 75–100 10 100–125 12 125–150 14 over 150 16 Deep sea deposits Extraction from the deposit per year (thou tons) Base rate of tax on petroleum and natural gas resources in per cent up to 100 2 100–200 4 200–300 6 300–400 8 400–500 10 500–600 12 600–700 14 over 700 16