LIETUVOS RESPUBLIKOS VYRIAUSYBĖ GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No 1507 ON criteria according to which investment contracts of not less than LTL 200m, EStablishing special investment and business conditions, are concluded with strategic INVESTORS Vilnius 31 December 1999 In accordance with Part 5 of Article 13 of the Law on Investment of the Republic of Lithuania (Official Gazette No 66-2127, 1999) and Part 3 of Article 5 of the Law on Tax Administration of the Republic of Lithuania (Official Gazette No 61-1525, 1995; No 90-2483, 1998; No 66-2126, 1999) the Government of the Republic of Lithuania h a s r e s o l v e d:
- To establish that: 1.
- investment contracts with investors, who according to the procedure established by the Law on Investment of the Republic of Lithuania (hereafter – the Law on Investment) pledge to invest not less than LTL 200m in an economic entity registered in the Register of Companies of the Republic of Lithuania (hereafter - the Register of Companies), shall in accordance with Article 13 of the Law on Investment establish special investment and business conditions and the investors shall be recognised as strategic investors, if the investment meets at least one of the following criteria: 1.1.
- not less than 300 new working places shall be created within three years. This ratio may be cut by up to 50 percent in the regions, where the industrial output (amount of industrial products sold) or average gross wages are below the average level of the country or where the average employment in agriculture exceeds the average of the country; 1.1.
- investment is in entities or technologies and creates the possibility to make use of the services of the country’s design, production and construction enterprises as well as local resources and raw materials unless otherwise established by the State Aid Monitoring Procedure approved by the Government of the Republic of Lithuania Resolution No 137 of 18 February 1997 On Approving The State Aid Monitoring Procedure (Official Gazette No 17-373, 1997; No 40-1263, 1999). 1.1.
- if full or partial responsibility is undertaken to eliminate environmental damage previously caused by the company in the territory of the company, where operations of the strategic investor are planned; 1.1.
- investment aims at restoring the liquidity of the company or at the sanation of a company under bankruptcy; 1.1.
- investment is in economic projects that are important for the state and the importance of which is acknowledged by a decision of the Seimas or the Government of the Republic of Lithuania; 1.
- an investment contract with a strategic investor is signed when he invests in an economic entity registered in the Register of Companies only by employing the following investment methods stipulated in Article 4 of the Law on Investment: 1.2.
- by setting up an economic entity, acquiring the capital of an economic entity registered in the Republic of Lithuania or a share therein; 1.2.
- by creating, acquiring fixed assets or increasing the value thereof. When this investment method is employed an investment contract shall be concluded when these assets are used for guaranteeing the activities and revenues of the economic entity, registered in the Register of Companies, and of the investor; 1.
- business taxation conditions in investment contracts shall be established in accordance with the Law on Tax Administration of the Republic of Lithuania (hereafter – the Law on Tax Administration), in accordance with which the investment contract shall pledge not to increase for a period of 5 years direct taxes valid at that moment and specified in Part 1 of Article 5 of the Law on Tax Administration (with an exception of the value added tax and the excise tax). This provision shall become valid only after the strategic investor informs the Government of the Republic of Lithuania or an institution authorised by it that he has invested not less than LTL 200m. If after some time it shall be established that the investment of the strategic investor had not reached LTL 200m on the date he had specified, whereas the tariffs of direct taxes had been raised on that date, the investment date of LTL 200m shall be noted and the investor shall pledge to pay taxes pursuant to tax laws in accordance with the changed tariffs; 1.
- the period of freezing taxes for a strategic investor may be extended for up to 10 years at the decision of the Government of the Republic of Lithuania.
- To oblige the Ministry of Finance at the proposal of other state institutions and municipalities, in coordination with the Ministry of Economy, to conclude investment contracts with strategic investors investing in economic entities registered in the Register of Companies. Prime Minister Andrius Kubilius Minister of Economy Valentinas Milaknis