ORDER

OF THE MINISTER OF FINANCE OF THE REPUBLIC OF LITHUANIA

REGARDING APPROVAL OF THE PROCEDURE FOR TRANSFERRING UP TO 2 PER CENT OF INCOME TAX AMOUNT TO LITHUANIAN ENTITIES ENTITLED TO SPONSORSHIP UNDER THE LAW ON CHARITY AND SPONSORSHIP OF THE REPUBLIC OF LITHUANIA

25 September 2002, No. 305

Vilnius

In accordance with item 9 of Resolution 1367 of the Republic of Lithuania “Regarding designation of authority for the implementation of the Law on Residents’ Income Tax of the Republic of Lithuania” as of 29 August 2002 (Official Gazette, 2002, No. 86-3694),

1. I hereby approve the Procedure for transferring up to 2 per cent of income tax amount to Lithuanian entities entitled to sponsorship under the Law on Charity and Sponsorship of the Republic of Lithuania (attached).

2. The present Order shall become effective as from 1 January 2003.

MINISTER OF FINANCE

DALIA GRYBAUSKAITĖ

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APPROVED

with Order 305 of the Minister of Finance of the Republic of Lithuania

of 25 September 2002

PROCEDURE FOR TRANSFERRING UP TO 2 PER CENT OF INCOME TAX AMOUNT TO LITHUANIAN ENTITIES ENTITLED TO SPONSORSHIP UNDER THE LAW ON CHARITY AND SPONSORSHIP OF THE REPUBLIC OF LITHUANIA

1. This procedure contains provisions for transferring a sum (up to 2 per cent) of the income tax payable by a permanent resident of Lithuania to Lithuanian entities (hereinafter referred to as sponsorship beneficiaries) which are entitled to sponsorship under the Law on Charity and Sponsorship of the Republic of Lithuania (Official Gazette, 1993, No. 21-506; 2000, No. 61-1818) (hereinafter referred to as the Law on Charity and Sponsorship).

2. At the end of the taxing period, a permanent resident of Lithuania shall have the right to submit an application to the tax administrator asking to transfer a part of the income tax payable by them (up to 2 per cent) to the sponsorship beneficiaries specified in the Law on Charity and Sponsorship (hereinafter referred to as Application).

3. Where under the provisions of the Law on Residents’ Income Tax of the Republic of Lithuania (Official Gazette, 2002, No. 73-3085) at the end of a taxing period a permanent resident of Lithuania must make an annual income tax return, the application shall be submitted together with the annual income tax return.

4. Where under the provisions of the Law on Residents’ Income Tax of the Republic of Lithuania a permanent resident of Lithuania is not obliged to make an annual income tax return at the end of the taxing period, the application shall be submitted, from the end of the taxing period and before May 1 of the following month, to the local tax administrator in whose area of activity the resident of Lithuania has a permanent place of residence.

5. A permanent resident of Lithuania who is not obliged to make the annual tax return at the end of the taxing period under the provisions of the Law on Residents’ Income Tax, shall have the right to submit an application at the end of the taxing period through a person to whom he/she is related by employment relations or relations of similar nature upon the consent of the latter. In such case individuals related to residents by employment relations or relations of similar nature through whom applications are submitted, shall, before May 1 of the corresponding year, forward these collected applications to the locations where a declaration of income tax deducted from the earnings of class A must be submitted under the procedure established by the central tax administrator. A permanent resident of Lithuania shall submit the application to the person to whom he/she is related by employment relations or relations of similar nature in a sealed envelope approved with a signature on the sealing line making it impossible to unseal the envelope without affecting the integrity of the signature.

6. The form of the application shall be established by the central tax administrator. The application shall indicate:

6.1. reporting taxing period;

6.2. first name and surname, permanent place of residence and personal number of the permanent resident of Lithuania;

6.3. name/-s, office address/-es, identification code/-es of a legal person designated pursuant to the law, number/-s of settlement account/-s, bank code/-s of the sponsorship beneficiary/-ies, and the part of the income tax requested to be transferred to each sponsorship beneficiary (in percentage).

7. The tax administrator, upon receipt of the application of a permanent resident of Lithuania, shall register the application under the corresponding procedure. The tax administrator shall examine whether the application indicates all the evidence required under this procedure. Applications missing any of the evidence required under this procedure, shall not be placed under consideration, and the permanent resident of Lithuania who has submitted the application shall be notified thereof and shall have the right to provide a supplemented application before July 1 of the current calendar year. If the application is submitted by a permanent resident of Lithuania who, under the provisions of the Law on Residents’ Income Tax, is obliged to make an annual income tax return at the end of the taxing period, and who has not made the said tax return, such application shall not be placed under consideration and the permanent resident of Lithuania submitting such application shall be notified thereof.

8. Upon accepting the application for consideration the tax administrator shall be obliged to:

8.1. check whether the sponsorship beneficiary/-ies specified on the application are entitled to sponsorship pursuant to the Law on Charity and Sponsorship and have the status of the sponsorship beneficiary after the coming into effect of the corresponding provisions of the Law on Charity and Sponsorship;

8.2. compute the part of the income tax amount transferable to sponsorship beneficiaries indicated on the application.

9. The computed sums transferable to specific sponsorship beneficiaries smaller than 10 Litas shall not be transferred to sponsorship beneficiaries.

10. Parts of the income tax amount paid that are indicated in the applications of permanent residents of Lithuania and are requested to be transferred to sponsorship beneficiaries, shall be transferred to them under the procedure established by the central tax administrator not later than before November 15 of the calendar year when the application was submitted.

11. In the event it turns out that the actual amount transferred to the sponsorship beneficiary/-ies is bigger than could be transferred under the provisions of the Law on Residents Income Tax, the overpaid amount shall be exacted from the sponsorship beneficiary/-ies in a manner provided by law. Unjustified amounts transferred shall be exacted from sponsorship beneficiaries in a manner provided by law.

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