Small companies with a workforce not exceeding 10 people and annual revenues not exceeding 1 million litas (289,855 euros) will have zero capital gains on the first 25,000 litas share of taxable profit, pursuant to amendments to the Law on Profit Tax voted into law by Lithuania's Parliament last week.
All profit above the 25,000 litas ceiling will be subjected to a 15 percent capital gains tax. The tax-break will apply to proprietorships of unlimited civil liability, general and limited partnerships. According to Saulius Lapenas, an MP, approximately 85,000 proprietorships have been registered in Lithuania.
The oil-transit company Pakterminal signed an agreement this week with Fortum on acquiring three fuel reservoirs belonging to Fortum's subsidiary Neste Eesti at Muuga. One of the reservoirs has a capacity of 10,000 cubic meters and the other two 12,000 cubic meters each. In addition, Pakterminal intends to build new storage tanks of its own. "We're expanding. Right now there are several factors restricting the development of Pakterminal: We have a shortage of tanks, we also must boost our unloading capacity," said Sulev Loo, board chairman of Pakterminal. The company is also holding talks with Tallinna Sadam (Port of Tallinn) on building addition quay capacity.
Latvian egg producer Sidgunda 2 said it needed about 500,000 lats (760,000 euros) in order to meet EU requirements. Company manager Normunds Kalnins said that the quality upgrade could be completed in six months "provided that one has the money." The European Commission has granted a transition period until May 1, 2007, to two Latvian egg producers - Balticovo and Sidgunda 2 - for upgrading production to European standards. The companies will only be able to sell their products on the domestic market during the period.
Latvijas Kugnieciba (LASCO) has sold all its holdings in Balt-Dutch Holding N.V., the company said in its report to the Riga Stock Exchange. The shipper's board decided to dispose of the shares in line with its strategy for 2003-2010, which envisages rolling off all noncore business activities. According to LASCO's 2003 annual report, last year the company held 60 percent in Balt-Dutch Holding N.V., which in turn owns 55.5 percent in the Dutch company Balt-Dutch Shipping Agencies B.V.
Three Baltic law offices have set up a strategic association - Lawin - which, according to their plans, should become the biggest provider of legal services in the Baltic states. The three firms that joined forces are Estonia's Lepik & Luhaaar, Latvia's Klavins & Slaidins and Lithuania's Lideika, Petrauskas, Valienas ir Partneriai. The association's goal is to combine the know-how and experience of the three offices so that they can provide an integrated legal service in all the three countries. Initially, the association will bring together 68 attorneys and lawyers. Lawin will work out a common standard of services and create working groups made up of representatives from each of the three companies.
