October 2014 Newsletter | Leinonen Lithuania

Dear reader,

Leinonen Lithuania has established an advisory unit. Besides assisting clients in company establishment and liquidation processes, consulting on labour issues, advising on tax and accounting policies, communicating with tax authorities on behalf of the client, providing tax and human resource compliance services, this unit provides summary of tax, accounting and legislation news to clients and other interested parties.

Please find below the main changes that were introduced during third quarter of 2014 or will be introduced soon:

Labour relations

Raising the minimum wage

As of 1 October 2014 the minimum wage will be raised as follows:

Adoption of euro

Approved basic amounts in euros

Following the provisions of the Law on the Euro Adoption of the Republic of Lithuania, Ministerial cabinet approved the motion by the Ministry of Social Security and Labour to round up the amounts of social benefits in favour of beneficiaries upon the adoption of the euro.

The Government approved the following basic amounts in euros from 1 January 2015: amount of state supported income – 102 euros, i.e. 352.19 LTL (currently 350 LTL); amount of basic social benefit – 38 euros, i.e. 131.21 LTL (currently 130 LTL).

Other draft amendments to the laws related to the adoption of the euro

• Additional tax-exempt amount of income

• Limit of income in order to apply a reduced rate of income tax of 5 %

• Limit of income from which depends the payment of advance income tax

• Value of inherited property up to which a tax of 5 % is applied

• Value of inherited property up to which it is tax-exempt

• Compulsory registration threshold when purchasing goods from EU Member States

• Compulsory registration threshold applied for VAT taxable activity

• Compulsory registration threshold for other EU VAT payers engaged in remote trading within Lithuania and those who within one calendar year supplied to certain Lithuanian persons, not VAT payers, the goods in the amount of

Centre of Registers

Centre of Registers started to announce the list of companies that failed to present their financial statement

According to the data of the Register, until 1^st of July there were almost 52 thousand companies that submitted their annual financial statements to the Register of Legal Entities. It makes the highest number of companies that submitted financial statements in due time since 2005.

The web page of the Centre of Registers published the public list of companies that failed to present their financial statement (http://www.registrucentras.lt/jar/stat/nepateike_FA.php).

Code of Administrative Violations of Law establishes that the failure to present financial statement or presentation of false financial data to the Register of Legal Entities may result in the fine in the amount from one to ten thousand Litas, imposed to the head of the company in default. Civil Code defines that any company that fails to submit its financial statement for more than two years may be liquidated on the initiative of the registrar of the Register of Legal Entities.

Small partnerships (SP) and private limited liability companies (UAB) with more than one shareholder must present information on its members to the Centre of Registers through the Information System of the Members of Legal Entities

Centre of Registers introduced the Information System of the Members of Legal Entities that aims at the storage of information on the members of legal entities by means of information technologies, as well as provision of such data to qualified natural and legal persons.

Information System being in force, customer service departments of the Centre of Registers do not accept the lists of shareholders of private limited liability companies (UAB). As previously, branches of the Centre of Registers will allow for the declaration of sole shareholder of private limited liability (UAB), i.e. the owner.

Currently, information on the shareholders of joint stock companies, which have more than one shareholder, and members of small partnerships may be submitted on the Information System of the Members of Legal Entities by registering on the Self-service System of the Centre of Registers. Information on the shareholders of private limited liability (UAB) and members of small partnerships (SP) may be submitted by the company manager or any natural person authorised to represent the company.

Any information on the members of the legal entity, entered on the Information System of the Members of Legal Entities, must be signed by the company representative by means of electronic signature, certified by qualified certificate.

Do you need advise in Lithuania?

Leinonen Lithuania helps companies enter and succeed in the Baltic and Lithuanian markets.

If you need any help or more detailed information, please contact:

MAŽENA BIRBALIENĖ

Head of advisory unit

tel. +370 5 237 504 0

e-mail: mazena.birbaliene@leinonen.lt

Leinonen Group is a Finnish-owned private accounting and advisory company, which was established already in 1989. Leinonen Group helps companies enter and succeed in challenging business environments by offering reliable accounting, payroll management, advisory, administration, and audit services. The deep local expertise and personal service approach, combined with wide international presence, is our strength. Our 13 offices can be found in the main cities of 11 countries – Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Bulgaria, Hungary, Russia, and Ukraine.

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Best Regards

Leinonen Lithuania

Vilnius | Kaunas

+ 370 5237 5040

leinonen@leinonen.lt

www.leinonen.lt