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Tax and Legal Newsletter, January 2014


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TAX NEWS

AMENDMENTS TO THE LAW ON FORESTRY AND RELATED LEGAL ACTS CAME INTO EFFECT

On 1 January 2014 amendments to Articles 2, 7, 11 of the Law on Forestry came into effect:

The main amendments, inter alia, set that:

- all managers of state forests (not only state forest enterprises) are required to pay 5 per cent as compulsory deductions from income from the sale of raw timber and standing timber to the state budget. It should be noted that since 1 January 2015 deductions will be paid by all forest managers. More information is available here and here.

Definition of the manager of state forest is included in the Rules of Calculation and Payment of Deductions from Income from the Sale of Raw Timber and Standing Timber to the Budget of the Republic of Lithuania which were amended by the Resolution No. 1266 of the Government of the Republic of Lithuania dated 18 December 2013:

- state forest enterprises;
- state reserve administrations;
- national park administrations;
- municipalities;
- state enterprises and organisations managing in trust state-owned forest land transferred to them by the resolutions of the Government of the Republic of Lithuania according to the procedure established by laws for the performance of public functions.

More information is available here.

REGARDING THE AGREEMENTS ON THE AVOIDANCE OF DOUBLE TAXATION APPLICABLE SINCE 2014

Since 1 January 2014 the Agreement between the Government of the Republic of Lithuania and the Government of the Kyrgyz Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income has become applicable.  

More information is available here.

AMENDMENTS TO THE VAT RETURN FILLING RULES

On 17 December 2013 VAT return filling rules for the form FR0600 were amended by the Order No. VA-90 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania.

The main changes are provided below:

- VAT return filling rules were supplemented with the provisions on the adjustment of the declared import VAT set off by the Tax Authorities in the VAT return of the tax period when:
(i) the customs office annuls the already finalized import declaration;
(ii) the import declaration which was finalized for one importer, a VAT payer, is later adjusted for the same or a new importer, a VAT payer;
(iii) a VAT payer makes a mistake in relation to filling of the import VAT.
- The rules for filling VAT return were supplemented with Annex 4, which provides examples of filling of import VAT set off by the Tax Authorities in the VAT return of the tax period.

More information is available here.

LEGAL NEWS

AMENDMENTS TO THE LAW ON PUBLIC PROCUREMENT CAME INTO EFFECT  

On 1 January 2014 the amendments to the Law on Public Procurement came into effect. The amendments establish:

- the requirement to announce the information on commencement of procurement, awarded winners and concluded contracts on all public procurements (including small value procurements) on the website of the purchasing authority;
- the low-value public procurement threshold has been raised from LTL 100,000 to LTL 200,000 (when purchasing works, the threshold remains lower than LTL 500,000, as it was previously);
- the provision under which the Law on Public Procurement does not apply to political parties has been repealed, except in cases when services are purchased for the advertisement of political parties and the production of propaganda movies and videos;
- the list of cases when the procurement has to be carried out through the Central Purchasing Organization (hereinafter – the CPO) or from CPO, was expanded. Purchasing organizations, except diplomatic missions of the Republic of Lithuania, foreign consulates and missions of the Republic of Lithuania to international organizations shall buy goods, services and works through the CPO or from it, when:
(i) the goods, services or works offered in the CPO catalogue comply with the needs of the buying organization;
(ii) the buyer cannot use the relevant funds more efficiently while carrying out the public procurement.
In case of declining to buy through the CPO, the purchasing organization is required to indicate specific reasons that the decision is based on.

More information is available here.

AMENDMENTS TO THE LAW ON INSURANCE CAME INTO EFFECT

On 1 January 2014 the amendments to the Law on Insurance, adopted by Lithuanian Parliament on 19 December 2013, came into effect. The amendments establish:

- provision of information in shall also include notifying by e-mail, fax and other telecommunication means (that were agreed in advance, individually discussed and allow the insurer to prove the fact that information was provided);
- while concluding and executing the insurance contract, the insurer and the insurance intermediary are entitled to process personal data (except sensitive data) of the insured, the beneficiary and the payer of insurance premiums without their consent;
- the insurer, inspecting the circumstances of an insurable event or of an event that may be considered to be insurable under life insurance, health insurance or civil liability insurance contracts, is entitled to receive and further process data possessed by health care institutions and other state institutions on the insured person’s and the injured third party’s health condition, provided healthcare services, diagnosed diseases, experienced traumas and causes of death;
- the number of automatic extensions of insurance contract term is unlimited;
- a competent institution has a right to provide compulsory instructions regarding funds kept in a separate account opened by an insurance brokerage firm.

More information is available here.

 

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