Lithuania on the way to change tax incentives scheme

    Photo via: www.filmvilnius.com Photo via: www.filmvilnius.com

    VILNIUS: The Government of the Republic of Lithuania has approved the proposed changes to the Law on Corporate tax. The amended tax scheme would offer a tax relief to companies wishing to invest in Lithuanian film production. It is hoped that the new scheme will be approved by the Lithuanian Parliament already this spring. 

    “The Lithuanian film industry offers good quality services, a wide range of shooting locations and highly qualified staff. However, Lithuania fails to attract foreign investors as it does not offer the possibility to offset investment in film productions against tax,” said the head of Lithuanian Film Centre Rolandas Kvietkauskas.

    Kvietkauskas adds that if Lithuania wishes to stay competitive in the region, amendments to the existent law are vital and should be made in the nearest future.

    The announcement was heralded as good news by the Vilnius Film Office which predicted that if the amendment is approved by the Lithuanian Parliament in spring it would ensure Lithuania’s place as a competitive presence in the field of international film production.

    International producers have already been scouting locations in Lithuania in anticipation of the amendment’s passage. Producer Richard McCallum, who was scouting in Vilnius last week, predicted that Vilnius could attract International projects worth millions.

    “When a similar law incentive took effect in Hungary, foreign films produced in the country increased seven-fold,” said Jūratė Pazikaitė, the director of Vilnius Film Office. “Latvia is the only country among our neighbors that has a similar tax exemption and with which we currently compete.”

    Kęstutis Drazdauskas, chairman of the Independent Producers Association of Lithuania, added, “It is very important because this system will attract private Lithuanian investors to film production too. Such an amendment would help Lithuanian film makers find partners abroad to coproduce films.”