The Lithuanian Parliament has passed new corporate tax-incentive legislation for the film industry. The tax incentive is modeled after current legislation in Hungary, and pledges a twenty-percent tax relief for films shot or produced in Lithuania.
The tax incentive is distributed according to several stipulations. Films must meet at least two of five cultural criteria, at least eighty percent of expenses must be incurred in Lithuania, and the total production budget has to meet or exceed 150,000LTL.
“This incentive is vitally important for our film industry,” said Arturas Zuokas, mayor of capital Vilnius. “The tax amendment will encourage Hollywood’s and Europe’s greatest filmmakers to choose Vilnius and Lithuania for shooting, bringing tax revenue and new jobs with them. This incentive will benefit not just the film industry, but the entire country.”
“We have highly competent film professionals, unique landscapes, architecture and all the seasons of the year,” Pazikaite said. “However, the absence of tax incentives caused us to lose projects worth millions as their creators decide to take them elsewhere. I am very pleased that this situation changed today and that Vilnius is once again in the running as a cost-effective location with highly educated and greatly skilled human resources.”
Producers expect that this incentive will lead to a 300% increase in the number of films made in Lithuania in 2014.