26-05-2020

Lithuanian Analysis Of Tax Incentive Results

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VILNIUS: An analysis of the impact of the Lithuanian tax incentives shows that five films have benefited from the Lithuanian Film Tax Incentive in 2020, despite the COVID-19 crisis. They include three Lithuanian films and two foreign productions. Investments for film production were granted to 21 local companies in the amount of 1.25 m EUR.

There are 13 film projects in the final stages, with audits being performed and final costs being determined. Producers expect to attract some 4 m EUR from private companies which will benefit from the tax incentives.

In 2019 Lithuania successfully increased its film tax incentives to 30% for a five-year period. The tax incentives and a welcoming approach by the government attracted international productions from the USA, Germany, Sweden, Norway, Finland, the UK and other countries.

Statistics from the Lithuanian Film Centre show that during the period between 2014 and 2019, a total of 157 productions benefited from the Lithuanian Film Tax Incentive, bringing the country a total of 111.9 m EUR in investment, with 76 m EUR of this coming from international film productions and 35.9 m EUR from Lithuanian companies.

Investments for film production were granted to 151 local companies in amounts ranging from 1,035 EUR to over 1.4 m EUR. Lithuanian business companies invested more than 24 m EUR through this scheme.

The Lithuanian Film Centre commissioned the Belgian company KEA to carry out a comprehensive study, which found that around 12,000 temporary jobs were created during the first four years of the benefit. Approximately one-third of project expenses went to other economic sectors, such as hotels, transport, food, other services.

Rolandas Kvietkauskas, the director of the Lithuanian Film Centre, commented: „We are one of the most successful countries in the region, applying such an incentive mechanism. The tax incentive, service quality and a big talent pool consolidated the country's film industry among major film and TV producers. It is also important to encourage local producers, because the scheme is a significant instrument to finance national production. Once the Ministry of Health has approved the guidelines to resume filming in Lithuania, we can slowly restart it.“

The scheme will be effective in its current form until 31 December 2023. This year, the Lithuanian Film Centre has already issued 33 film certificates for the tax incentives scheme.

More information : http://www.lkc.lt/en/tax-incentives/facts-and-figures-film-tax-incentives/