The upgraded Lithuanian 30% tax incentive is now fully active
by Vassilis Economou
- After the successful first term of the incentive scheme, the upgraded version, which is again being managed by the Lithuanian Film Centre, has reached 30% and will be active for five more years
As already discussed with the director of the Lithuanian Film Centre (LFC), Rolandas Kvietkauskas (see the interview), the tax incentive scheme that was originally introduced back in January 2014, which can now boast a proven track record, was scheduled for an upgrade from 20% to 30%, starting this year. This was also one of the main promotional aims when the LFC went to the Berlinale’s EFM (see the news), where the centre was attempting to attract potential new international partners. Officially, the Lithuanian 30% tax incentive scheme is now active, and the legislation has been renewed for the next five years.
In detail, the scheme allows a film’s producers to save up to 30% of the budget, and this will occur through a private investment scheme. The LFC is the managing body of the incentive, and productions of feature films, documentaries, animated films and TV dramas are all eligible to apply. Also, the valid co-production schemes are manifold, since local productions, co-productions and commissioned films (if they fall under the service agreement) are eligible.
On the practical side, only productions that meet the above requirements can apply and take advantage of the programme. Furthermore, in order to do so, they must have a Lithuanian-registered production company on board, either as the majority or minority partner; they must spend at least 80% of the eligible film production costs in Lithuanian locations; and the total amount of expenditure in the country must not be lower than €43,000.
As previously reported, the first five-year term of the tax incentive, from 2014-2019, has brought in some impressive results (see the news), establishing Lithuania as one of the most important locations in the market as things stand, and also making it compatible with more advanced film hubs. This has also had an immediate effect on the local industry, which is now also being carried over to Lithuanian films, with many recent examples of well-travelled titles. Finally, it’s not only films that are trusting in Lithuania as their location, but also highbrow TV dramas, such as HBO/SKY’s Chernobyl (see the news), the BBC’s War and Peace and Netflix’s Tokyo Trial, with more productions to come soon.
For all the details and more information on the tax incentive scheme, you can visit the LFC’s official website.
Did you enjoy reading this article? Please subscribe to our newsletter to receive more stories like this directly in your inbox.