Order No 1K-188 of 10 June 2010 of the Minister of Finance Amending the Order No 40 of 11 February 2002 of the Minister of Finance on the Approval of Rules on the Evidence on Bad Debts and the Efforts to Retrieve Such Debts and the Calculation of Bad Debts (Official Gazette (Valstybės Žinios), No 70-3480).

      

      The Order simplified the procedure of attribution of bad debts to allowable deductions:

      

      1) The amount of debts, which if unexceeded is subject to a simplified procedure of bad debt substantiation, was increased.

      

      2) It was established that the requirement for the tax payer to hold documents proving the badness of minor debts and his attempts to retrieve such debts would also not apply in such cases when the legal person is indebted.

      

      3) The requirement to present documents translated into Lithuanian and approved in the established procedure for the purpose of notary actions was abolished.

      

      4) It was established that the document proving the company‘s deregistration from the Register of Legal Persons might also be an electronic transcript of the database of State Enterprise the Centre of Registers (i.e. a copy printed out by the company itself).

      

      5) It was established that bad debts formed due to the bankrupt of other company might also be proved by the document proving the deregistration of liquidated company from the Register of Legal Persons.

      

      6) It was established that a tax payer should not be subject to the requirement to hold documents proving the fact of death or deregistration of the debtor in case tax administrator can check such facts in the database following the provisions of agreements signed with respective managers of registers or according to the provisions of the laws of the Republic of Lithuania.

      

      The Order applies in the calculation of taxable profit of the tax period beginning in 2010 and the successive tax periods.