REPUBLIC OF LITHUANIA                                     
                                                                                
                               Law                                              
                               on                                               
                the Tax on the Immovable Property                               
                of Enterprises and Organisations                                
                                                                                
                                                                                
                                                                                
     Article 1. Purpose of the Law                                              
     This Law  regulates taxation  of immovable property of legal               
persons and  the immovable  propery of  enterprises  without  the               
rights  of   legal  persons   to  which   legal  registration  is               
established.                                                                    
                                                                                
     Article 2. Object of Taxation                                              
     The object  of taxation  shall be immovable property located               
on the  territory of  the Republic  of Lithuania and belonging by               
the right  of ownership  to legal persons and enterprises without               
the rights  of legal  persons (excluding land) to which immovable               
property legal registration is established.                                     
                                                                                
     Article 3. Taxpayers                                                       
     The tax  shall be  paid by  legal  persons  and  enterprises               
without the rights of legal persons.                                            
     Exempt from the payment of tax shall be:                                   
     1)  foreign   diplomatic  missions  and  consular  agencies,               
provided that  in the  countries which  they represent diplomatic               
missions and  consular agencies  of the Republic of Lithuania are               
exempt from this or analogous tax;                                              
     2) institutions,  enterprises and  organisations  of  health               
care, education  and studies,  culture, sports,  social care  and               
maintenance,  and   pre-school  institutions,   enterprises   and               
organisations;                                                                  
     3) residential  house  maintenance  and  garage  maintenance               
associations and  associations of  gardeners which  service  only               
their respective members;                                                       
     4) agricultural enterprises;                                               
     5) societies  for the blind, deaf and other disabled persons               
as well as their enterprises;                                                   
     6) charitable funds and charitable organisations; and                      
     7) state-owned enterprises.                                                
     Joint ventures  and foreign  capital firms shall pay the tax               
in accordance  with the  procedure applied  to the enterprises of               
the Republic of Lithuania unless bilateral agreements between the               
states provide otherwise.                                                       
                                                                                
     Article 4. Rate of Tax                                                     
     The annual tax rate shall be:                                              
     1)  on  the  immovable  property  used  for  the  activities               
provided for in the taxpayer's bylaws -1% of the taxable value of               
the immovable property; and                                                     
     2)  on   immovable  property  which  is  not  used  for  the               
activities provided  for in  the taxpayer's  bylaws for  a period               
exceeding one  year -  5% of  the taxable  value of the immovable               
property.                                                                       
     Municipal councils  into whose  budgets the  tax is included               
shall have  the right to reduce the tax rate but not in excess of               
50%.                                                                            
                                                                                
     Article 5. Tax Exemptions                                                  
     Exempt from tax shall be:                                                  
     1) immovable  property  or  part  thereof  used  for  nature               
protection and fire prevention;                                                 
     2) immovable  property transferred  without compensation for               
the use  of charitable  organisations  and  funds,  institutions,               
enterprises and  organisations of culture, education, social care               
and maintenance;                                                                
     3) premises,  buildings and  structures used  solely for the               
activities of  the cult  and for social care and maintenance, and               
for the manufacture of articles of the cult;                                    
     4) buildings,  structures or  their parts  used for cemetery               
and burial services;                                                            
     5) property  of associations  of house  owners which  is not               
used for profit (income) generation.                                            
                                                                                
     Article 6. Taxable Value of Immovable Property                             
     Immovable property  to which  state  legal  registration  is               
obligatory shall  be valued by the state institutions established               
or authorised by the Government of the Republic of Lithuania.                   
     Immovable property  shall be  valued  at  taxable  value  in               
accordance with  the methods established by the Government of the               
Republic of  Lithuania. The  valuation shall be valid for 5 years               
provided that  the consumer  price index does not exceed 1.25 per               
calendar year.                                                                  
                                                                                
     Article 7. Tax Calculation                                                 
     The taxpayers  shall every  year calculate  the tax  on  the               
immovable property  which belongs  to  them  by  ownership  right               
according to  the taxable value of the immovable property as of 1               
January of  that year  and shall  file the  calculations with the               
town (district) state tax inspectorate by 1 March.                              
     The  correctness   of  the   calculation  of  tax  shall  be               
controlled by the town (district) state tax inspectorate.                       
     The  tax  on  newly  acquired  or  built  taxable  immovable               
property shall  be calculated in the amount of 1/12 of the annual               
sum for  each month  beginning from  the  month  following  legal               
registration of  the property.  The calculation of the tax amount               
shall be filed with the state tax inspectorate upon the expiry of               
one month after the legal registration of the property. For newly               
acquired property  the amount  of the  tax due  shall be  divided               
proportionately for the remaining payment periods.                              
     Upon the transfer of the title to property to another person               
or upon  the  loss  of  said  property,  the  tax  shall  not  be               
calculated beginning  from the  month following the change in the               
legal registration of the property.                                             
     Taxpayers who  fail to pay the tax by the due date shall pay               
it for the period not exceeding two preceding years. Verification               
of taxable  value and  calculation of  the  amount  of  tax,  and               
refunding or  exaction of the tax shall also be permitted for the               
period not exceeding the two preceding years.                                   
                                                                                
     Article 8. Procedure for the Payment of Tax                                
     The tax  shall be  paid by  instalments equal  to 1/4 of the               
yearly amount within 25 days after the end of the quarter.                      
     The tax  on immovable  property shall  be  included  in  the               
budget of  the municipality  on whose  territory the  property is               
located.                                                                        
                                                                                
     Article 9. Liability for Incorrect Computation and                         
               Payment of Tax                                                   
     Upon establishing  that the  taxpayer has failed to file the               
tax calculation  or has calculated a smaller amount than due, the               
state  tax   inspectorate  shall   collect   without   suit   the               
additionally computed  amount of  the tax  and a fine in the same               
amount.                                                                         
     Failure to  pay the tax by the due date shall incur interest               
in the amount of 0.3% for each day that the tax remains unpaid.                 
                                                                                
     Article 10. Dispute Settlement Procedure                                   
     Disputes concerning  the calculation of the tax on immovable               
property and  the payment  thereof shall be settled in accordance               
with the  procedure established  by the  laws of  the Republic of               
Lithuania.                                                                      
                                                                                
     Article 11. Final Provisions                                               
     This Law  shall come into effect on 1 January 1995, with the               
exception of  Article 6 which shall become effective on 1 January               
1996 and  the last  paragraph hereof which shall come into effect               
on 1 August 1994.                                                               
     Until such  time as Article 6 comes into effect, the taxable               
value of immovable property shall be established in the following               
way:                                                                            
     1) the  taxable value of enterprises and organisations which               
draw up  a balance sheet shall be considered the original cost of               
said property  indexed by  applying the  ratios prescribed by the               
Government of the Republic of Lithuania;                                        
     2) the  taxable value of enterprises and organisations which               
do not  have to  draw up  a balance sheet shall be considered the               
value by  which the property is recorded at the state institution               
which registers immovable property.                                             
     An enterprise  or an  organisation shall  be prohibited from               
conducting activities  in the  event of  failure to  register the               
property owned by it.                                                           
     Prior to  the coming  into effect  of the law on state legal               
registration of  property, immovable property shall be registered               
in accordance with the procedure established by the Government of               
the Republic  of Lithuania.  The Government  shall establish  the               
procedure until  1 November 1994, specifying at the same time the               
list  of   immovable  property   the  registration   whereof   is               
obligatory.                                                                     
     If the consumer price index exceeds 1.25 per year, immovable               
property value  must be  indexed in accordance with the procedure               
established by the Government of the Republic of Lithuania.                     
     Prior to the coming into effect of Article 6, the Government               
of the Republic of Lithuania shall:                                             
     1)  establish  new  state  institutions  and  authorise  the               
existing state  institutions to value the immovable property by 1               
January 1995; and                                                               
     2) establish,  by 1  June 1995,  the methods for valuing the               
immovable  property  at  market  prices  and  the  procedure  for               
determining taxable value.                                                      
     Stock companies (former state stock companies) shall, in the               
period from  1 August  1994 to  31 December 1994, pay interest on               
the use of state capital according to the effective procedure.                  
                                                                                
     I promulgate  this Law  passed by the Seimas of the Republic               
of Lithuania.                                                                   
                                                                                
                                                                                
Algirdas Brazauskas                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
20 July 1994                                                                    
No. I-565