These measures are also particularly attractive for foreign corporations, which will find favourable opportunities for investing in our country by establishing production plants there.

The provisions on tax benefits introduced by the Decree Law No. 357/94 prescribe that those employers who hire new staff for an unlimited period of time on regular contract during the taxable period in which the Decree Law came into effect enjoy a tax credit (25 % of the new employee's salary). However, such benefit applies only in those cases in which the employee's salary does not exceed Lit. 30,000,000 per year (appro-ximately US $ 17,400). The maximum tax saving can reach Lit. 7,500,000 per employee per year (approximately US $ 4,400).

This tax allowance benefits primarily enterprises, private institutions, corporations, and those carrying out artis-tic or professional activities.

To the above-mentioned benefits must be added the advantages offered by employee training contracts. Such contracts allow employers to hire non-skilled employees for a two years period with exemptions from payment of employee social security contributions.

Decree Law No. 357/94 also contains another interesting provision which excludes from business income taxation 50 % of new investments provided that the amount of the investment is higher than the average of investments realized over the last five years.