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Tax and Legal Newsletter

January | 2018

Deloitte Lithuania is glad to introduce you with the monthly Tax and Legal Newsletter. In these publications, you will be presented with the latest tax and legal news prepared by our Managers from Tax and Legal Department.

Deloitte showed the greatest strength and depth in its international tax practice to win the Baltic States Tax Firm of The Year and the Baltic States Transfer Pricing Firm of The Year awards in a prestigious European Tax Awards competition organized by International Tax Review.

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, any of its member firms or any of the foregoing’s affiliates (collectively the “Deloitte Network”) are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

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The Regulation on Cadastre of Real Estate has been amended

On 23 December 2017 amendments to the Regulation on Real Estate Cadastre, establishing electronic means for actions related to cadastral data files, entered into force.

According to the amendments, submission, verification, coordination of cadastral data files, as well as data incorporation into the Cadastre of Real estate, data amendments, corrections and removal from cadastre have to be performed only by electronic means: in case of constructions – via Real Estate Register’s subsystem “Matininkas”; in case of land plots – via subsystem “GeoMatininkas”.

In addition, new amendments establish provisions regarding data entry of land plot market value into cadastre. Cadastre administrator, upon receipt of request to enter or amend data of a land plot in cadastre, estimates average market value of the land plot and enters respective information into the cadastre.  

More information is available here.

Tax and Legal Newsletter, January 2018 (PDF)

New wording of Regulation on Visa Issue came into force

On 3 January 2018 new wording of Regulation on Visa Issue (hereinafter – the “Regulation”) came into force.

Key novelties introduced by the Regulation are:

-       Conclusion of the List of Approved Companies established. Foreigners arriving for work purposes to the company included in the List of Approved Companies and meeting other requirements established by the Regulation will enjoy simplified national visa application procedure. In order to be included in the list, companies must meet 9 mandatory criteria (e.g. no social security debts exceeding EUR 38; company is not in bankruptcy, etc.) and at least 4 additional criteria (e.g. revenue exceeds EUR 500 000 within a year, average gross monthly salary paid to employee is not less than gross average monthly salary in Lithuania, etc.).

-       New procedure for approval of invitation letters. It establishes that request to approve invitation letter for foreigner to arrive to Lithuania can be submitted only through electronic services information system (hereinafter – “EPIS”) and the request cannot be submitted earlier than 6 months before intended date of foreigner’s arrival. Further, requests for invitation letter approval submitted by legal persons cannot exceed 50 requests within one calendar year.

-       Submission of mediation letter for national visa issue using EPIS, which will replace hard copies of mediation letters. In addition, new requirement to prepare and submit mediation letter not earlier than 1 month before applying for national visa is established.

More information is available here.

Tax and Legal Newsletter, December 2017 (PDF)

The minimum salary in Lithuania increases

As of 1 January 2018 the minimum salary in Lithuania has increased. Now hourly gross salary is EUR 2.45 and monthly gross salary is EUR 400.

More information is available here.

New wording of the Law of Concessions adopted

On 1 January 2018 new wording of the Law on Concessions (hereinafter – the “Law”) came into force. The purpose of the new wording of the Law is to ensure efficient and transparent provision of concessions as well as to harmonize the regulation with EU law.

The Law introduces the following key amendments to the legal regulation:

  • The Law expressly identifies two types of concessions: concession of works and concession of services (concession of works enables its holder to perform works and exploit their results, whereas a service concession provides for a permit to organize and provide services and (or) public services);
  • Range of candidates to participate in tenders is extended, as both natural and legal persons can from now on become concessionaires;
  • Rules for estimation of the concession value have been established;
  • The Law no longer limits the maximum duration of concession agreement. An authority granting the concession will determine duration of its agreement, with consideration of required works or services;
  • The Law also provides for regulation on questions related to combined agreements. An agreement shall be considered as combined if: a) subject matter of the agreement is both, works and services; or b) one or several parts of the concession agreement is subject to the Law, whereas the remaining parts of the agreement are subject to other Lithuanian or EU legal acts (e. g. Law on Public Tenders);
  • The Law establishes the circumstances when a concession agreement can be amended;
  • The Law supplements the list of information that the participants have to indicate in their tender documents. For example, from now on the participants will have to indicate all subcontractors that the participant intends to invoke for the execution of the concession agreement;
  • The Law establishes that a participant which is included into a list of participants shall be invited to negotiation by the granting authority even if its tender is second in the highest rating, in case such tender is similar to a tender which is awarded with the highest rating and the rating between the first and the second tenders differs by no more than 15 per cent. Moreover, a granting authority has the right to invite to negotiations a participant, the tender of which is the second in the highest rating even if the rating between the first and the second tenders differs by more than 15 per cent. Upon the negotiation, the granting authority concludes a concession agreement with the participant, which submitted a better tender (considering tender evaluation criteria).

More information is available here.

Amendments to the Law on Control of Alcohol came into force

As of 1 January 2018, amendments to the Law on Control of Alcohol regarding restrictions on retail and advertisement of alcoholic beverages in Lithuania became applicable.

According to the established restriction on alcohol advertisement, the following actions should be considered as not allowed:

  • To place information on social networks (e.g. Facebook, Instagram etc.) about alcoholic beverages that are on sale or are produced;
  • To provide links to websites with alcohol advertisement for the Lithuanian market on the labels of alcoholic beverages;
  • For retailers of magazines, newspapers and other publications: to sell magazines, newspapers and other publications containing alcohol advertisements; etc.

The Law on Control of Alcohol also indicates actions that are not considered as alcohol advertising e.g. placing names and trademarks of alcohol manufacturing or selling companies on their buildings or transportation; providing information on country of origin, region, price and other information about alcohol beverages when such information is provided at commercial places or on websites of alcohol manufacturers and sellers, etc.

More information is available here and here

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