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102 Seimas members voted in favor of the bill, 0 against and 10 abstentions.
The income tax exemption will apply if the state aid granted to the company does not exceed the amount allowed by the European Union, up to 25%. investment. This means that this amount would be distributed in 20 years.
The benefit will be available for data processing, Internet server services (hosting) and related activities and production companies; Investments in them would have the highest added value for the Lithuanian economy.
However, the companies would lose the benefit if the investments of the company operating in the Vilnius and Vilnius district did not reach LTL 30 million per year. or its average number of employees would no longer exceed 200, and in the rest of the country, respectively, 20 million. and 150 employees.
If a great investor invests more than 100 million. Lithuania could file an application with the European Commission, which would establish other “ceiling limits” for tax relief depending on the state aid it receives.
When the law was passed, conservative Mykolas Majauskas said more laws were needed to create new jobs.
“More laws are needed to create new jobs, more initiatives to make a bigger cake that is better for everyone, rather than trying to control an already digested cake again,” he said.
Photo by Lukas Balandis / 15min / Mykolas Majauskas
According to him, “Invest in Lithuania” predicts that in 5 years this law will attract investments in Lithuania for 200 million. approximately 7 investments of 30 million euros each. euros It is said that 2 thousand. jobs with an average salary of around 1.8 thousand. euros
“It just caught our eye then.” Reduce bureaucratic barriers to various permits for future investors even further, invest in critical infrastructure and, of course, reform education, “he said.
Social democrat Algirdas Sys said he would vote against the bill. According to him, “everything is fine when it comes to investment and job creation”, but the collection of corporate tax in our country lags behind the average of the European Union almost twice.
“This law proposes to exempt an investor from corporate income tax for up to 20 years, no matter what the earnings will be. This is not the smartest move, knowing that Lithuania is among the countries where redistribution is one of the most Small. “The goal of not paying income tax for 20 years is a service to the public sector, the common good and taxpayers,” he said.
Julius Kalinskas photo / 15min / Algirdas Sysas
Algirdas Butkevičius, who belongs to a mixed group of Seimas members, also supported this law and said it would help attract new investors to the country. It will also help compete with other states for large investments.
“Income tax is around 6 percent on average. In the income structure of the state budget. This means that the next investor 94 percent. Other taxes will be paid to our state. And some Seimas members talk about that, as if we already shared a cake ”, he assured.
Photo by Lukas Balandis / 15min / Algirdas Butkevičius
State farmer Vida Ačienė also supported the bill and assured that the municipalities themselves will have more opportunities to attract investment to their regions.
“Attracting new investments and creating jobs will depend on the activity of self-government. In other words, it is given the fishing rod, the fish will have to catch it by itself,” she is convinced.
Photo by Lukas Balandus / 15min / Vida Ačienė
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