OF THE SUPREME COUNCIL                                     
                  OF THE REPUBLIC OF LITHUANIA                                  
                    REGARDING THE ASSESSMENT                                    
               OF TAXABLE PROFIT OF LEGAL PERSONS                               
     Pursuing From  Article 6 of the Republic of Lithuania Law on               
Taxes on  Profits of  Legal Persons,  The Supreme  Council of the               
Republic of Lithuania resolves:                                                 
     1. To  establish that,  when computing the taxable profit of               
legal  persons,   the  actual  expenses  of  charities,  culture,               
education, and  other affairs  for social development, as well as               
actual  expenses  associated  with  financing  studies,  but  not               
exceeding the  amount  specified  in  the  Supplement,  shall  be               
deducted from the balance profit. (Amended 6 February 1992)                     
     2. Charitable,  cultural,  educational,  and  other  social-               
service expenses shall be:                                                      
     1) gratuitous  remittance (transfer)  of money  or  material               
property, the  acquisition and transfer of patents or licences to               
organizations whose  bylaws provide  for charitable functions, as               
well as  to institutions  of culture,  education, science, health               
care, sports,  social  security  and  social  welfare  which  are               
financed from  the  State  Budget  of  Lithuania  or  from  local               
government  budgets,   provided   that   said   institutions   or               
organizations render  no services  for the  benefit of  the legal               
person remitting (transfering) the money (property);                            
     2) expenses  associated with  the protection and restoration               
of historical and cultural monuments;                                           
     3) profits  received by  non-profit organisations  and their               
enterprises which are used for their own needs;                                 
     4)   expenses    associated   with    medical   and   social               
rehabilitation  of   disabled  persons,   with  the   design  and               
production of  technical equipment  which they  are provided with               
free of  charge, and  with the  provision of  the needs  of  said               
persons in the spheres of culture and sports; and                               
     5) expenses  associated with liquidating the consequences of               
natural disasters  and ecological  catastrophes, as  well  as  of               
epidemics of infectious diseases.                                               
     3. The  amount of profit remitted according to the procedure               
established by the Government to officially registered charitable               
foundations shall  be exempt  from taxation.  (Amended 6 February               
VYTAUTAS LANDSBERGIS                                                            
Supreme Council                                                                 
Republic of Lithuania                                                           
31 October 1990                                                                 
No I-723                                                                        
                     TO THE SUPREME COUNCIL                                     
                  OF THE REPUBLIC OF LITHUANIA                                  
             RESOLUTION No I-723 OF 31 OCTOBER 1990                             
     Maximum Expenses  of legal  Persons  Deducted  from  Balance               
Profit when Assessing Taxable Profit                                            
                              |Maximum expenses deducted                        
                              |from balance profit when com-                    
 Categories of legal persons  |puting profit tax (percentage                    
                              |of balance profit)                               
                              |for the purposes of|   for                       
                              |charities, educa-  |financing                    
                              |tion, and other af-| studies                     
                              |fairs of social    |                             
                              |utility            |                             
Societies of the blind, the deaf,                                               
and other disabled persons,                                                     
their enterprises and organisa-                                                 
tions                                   75*            25                       
Lithuanian Exile and Political                                                  
Prisoner union, Lithuanian                                                      
Abstinence Union, the Red Cross                                                 
Society, Bishop M. Valancius                                                    
Temperance Movement, the Culture                                                
Fund, the Compassion and Health                                                 
Fund, the Children's Fund,                                                      
other organizations and foundations                                             
whose main purpose is charity,                                                  
as well as their enterprises                                                    
and organizations                       75*            25                       
Other organizations engaged in                                                  
nonprofit activities (parties,                                                  
unions, societies, clubs, federa-                                               
tions, associations, etc.) and                                                  
their enterprises and organizations     25             10                       
Other enterprises                       3              5                        
Institutions of science and studies     3*             97                       
     * Maximum  expenses on  charities, culture,  education,  and               
other affairs  for social  development may  be increased  to  the               
extent that maximum expenses on financing studies are reduced.