‘After entry into force of this Government resolution, the entire Green Corridor mechanism will become operational because some specific requirements and procedures will be approved for investors implementing large projects. Now, when competing with other countries we are gaining additional advantages for attracting large investments. If the pandemic destroys no plans of investors, we estimate that in 5 years they will be able to create about 2000 new jobs across Lithuania,’ says Minister of the Economy and Innovation Aušrinė Armonaitė.
The approved procedure descriptions determine the procedure for submitting and evaluating large project applications, establish the requirements for contract award for large projects and regulate the implementation supervision of the project contracts. It also lays down the procedure for granting and supervising corporate tax relief on state aid as well as other provisions.
Seeking ways to attract large foreign investments more successfully, in June 2020 the Seimas adopted a package of Laws on Investments and on Corporate Tax, worked out by the Ministry of the Economy and Innovation and aimed to promote the implementation of large-scale projects of local and foreign capital in Lithuania. The package of laws, also known as the Green Corridor for Investments, provides for much faster and simplified procedures for investor setting up an in Lithuania and for additional grants to the municipality implementing the investment project.
There is also a tax exemption under which a business meeting certain requirements will be exempt from a corporate tax for a period of 20 years. Foreign and local investors which create at least 150 new jobs (200 jobs in Vilnius) and invest at least EUR 20 million in fixed assets (EUR 30 million in Vilnius) will benefit from this incentive. Large projects must be implemented in the areas of manufacturing, data processing or Internet server services in the territory of Lithuania.
Amendments to these laws are particularly important in increasing Lithuania’s ability to compete with other states for attracting large investments because proper legal regulation together with the developed infrastructure are among the key investor needs and advantages of each country.
