official translation REPUBLIC OF LITHUANIA LAW ON CORPORATE INCOME TAX 2001 December 20 No IX-675 (As last amended on 10 April 2008 – No X-1484) Vilnius CHAPTER I GENERAL PROVISIONS Article 1. Purpose

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which are paid by a Lithuanian entity or a permanent establishment situated in a Member State of the European Union of a foreign entity shall be exempt from corporate income tax at source, provided that the recipient (beneficial owner) of the amounts is a foreign entity which is considered to be resident, for tax purposes, only in a Member State of the European Union (hereinafter referred to as the “entity of a Member State”) or a permanent establishment situated in another Member State of the entity of a Member State. 2. The following shall be treated as the beneficial owner of income: 1) any entity of a Member State, which takes on one of the forms of business organisation listed in Annex to Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States (hereinafter referred to as “Directive 2003/49/EC”) and which is subject to taxes specified in Article 3(a)(iii) of Directive 2003/49/EC without being exempt from such taxes, provided that it receives income for its own benefit and not as an intermediary, such as an agent, trustee or authorised signatory, for some other person; 2) any permanent establishment situated in another EU member state of an entity of a EU member state, which takes on one of the forms of business organisation listed in Annex to Directive 2003/49/EC and which is subject to taxes specified in Article 3(a)(iii)of Directive 2003/49/EC without being exempt from such taxes, provided that the debt-claim, use or right to use in respect of which the payment of amounts specified in subparagraphs 1, 3, 4,

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of this Law arises is effectively connected with that permanent establishment and provided that the amounts specified in subparagraphs 1, 3, 4,

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of this Law are recognised as income in respect of which that permanent establishment is subject to one of the taxes mentioned in Article 3(a)(iii) or in the case of Belgium to the “impôt des non-résidents/belasting der niet-verblijfhouders” or in the case of Spain to the “Impuesto sobre la Renta de no Residentes” or to a tax which is identical and which arises later or in place of those existing taxes.

1. The provisions of this paragraph shall apply where at the time of payment of amounts to the entity of a Member State or its permanent establishment and for an uninterrupted period of at least two years before the payment is made, the entities of Member States meet one of the following criteria: 1) the paying Lithuanian entity or the entity of a Member State, whose permanent establishment situated in the Republic of Lithuania pays out such amounts, controls directly at least 25% percent of the shares (interests, member shares) in the receiving entity of a Member State or in the entity of a Member State whose permanent establishment receives such income; or 2) the receiving entity of a Member State or the entity of a Member State, whose permanent establishment receives such income, controls directly at least 25% percent of the shares (interests, member shares) in the paying Lithuanian entity or in the entity of a Member State whose permanent establishment in the Republic of Lithuania pays such amounts; or 3) any other entity of a Member State controls directly at least 25% percent of the shares (interests, member shares) in the receiving entity of a Member State or the entity of a Member State whose permanent establishment receives such income and also in the paying Lithuanian entity or in the entity of a Member State whose permanent establishment situated in the Republic of Lithuania pays such amounts.
2. Where a permanent establishment is treated as the payer, or as the beneficial owner, of the amounts specified in subparagraphs 1, 3, 4,

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of this Law, no other part of the foreign entity shall be treated as the payer, or as the beneficial owner, of those amounts. 5. The provisions of this Article shall apply to a permanent establishment which is the payer of the amounts specified in subparagraphs 1, 3, 4,

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of this Law if such amounts may be deducted from the income of the permanent establishment in accordance with the provisions of this Law and other legal acts. 6. A Lithuanian entity or a permanent establishment which is the payer of the amounts specified in subparagraphs 1, 3, 4,

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of this Law must have documents evidencing the fulfilment of the requirements laid down in paragraphs 1-3 of this Article. The requirements for such documents shall be set forth by the central tax administrator. 7. The provisions of this Article shall also apply to the dependent territories of states and EU Member States if such application is provided for in EU legal acts. The Law will be supplemented by this Article after the expiry of four calendar years from the beginning of the application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and it will be valid for two calendar years: Article *37