The Double Taxation Relief (Taxes on Income) (Lithuania) Order 2001

(1) (a) Where a resident of Lithuania derives income or capital gains which, in accordance with this Convention, may be taxed in the United Kingdom, unless a more favourable treatment is provided in its domestic law, Lithuania shall allow as a deduction from the tax on the income of that resident, an amount equal to the United Kingdom income tax, corporation tax or capital gains tax paid thereon in the United Kingdom.

Such deduction shall not, however, exceed that part of the tax in Lithuania as computed before the deduction is given, which is attributable as the case may be, to the income or capital gains which may be taxed in the United Kingdom.

(b) For the purpose of sub-paragraph (a) of this paragraph, where a company that is a resident of Lithuania receives a dividend from a company that is a resident of the United Kingdom in which it owns at least 10 per cent. of its shares having full voting rights, the tax paid in the United Kingdom shall include not only the tax paid on the dividend, but also the tax paid on the underlying profits of the company out of which the dividend was paid.