Tax incentives in Lithuania

Who benefits? Lithuanian and foreign producers. The local donor benefits as it is an opportunity to support film production and at the same time to reduce local corporate income tax.

Who benefits? Film producer benefits from a tax incentives up to 20% of the total budged spent in Lithuania.

Scheme

According to the Territorial spending obligations up to 20% of the film costs in Lithuania can be spent outside the country.

Scheme Application must be submitted throughout the Lithuanian producer.

Scheme Donation to the production has to be received from a Lithuanian entity that has corporate tax liability.

What needs to happen? You need to film the whole film or a part of the film in Lithuania. Further procedures and conditions apply for the amount that is planned to be spent in Lithuania. The aggregate maximum amount of the donation funds provided cannot exceed 20% of the production expenses of the film or its part. At least 80% of production costs for the film or a part of the film that is intended to be filmed in Lithuania has to be spent in Lithuania. Film spend in Lithuania has to be least LTL ( EUR). Film must match at least two cultural content criteria. Film must match production criteria.

Who qalifies? Feature films, TV films, documentaries and animated films. Films produced nationally, co-produced or commissioned (production service is provided by a Lithuanian film who does not become the owner of copyright and related rights of a film).

Assessment of cultural content of a film on the basis of a script A film shall be considered in conformity with the cultural content assessment criteria if: The film meets at least two of the film cultural criteria The screenplay or central theme of the film are based on events which are part of Lithuanian or European culture, history, mythology or religion The film tells about a character or personality who is part of Lithuanian or European culture, history, society or religion The screenplay or central theme of the film is based on a culturally significant work of national or European literature The film reflects an important Lithuanian or European value/values such as cultural diversity, solidarity, equity, minority rights, human rights, tolerance, environmental protection and respect for cultural and family traditions The film focuses on the issue of Lithuanian or European identity or Lithuanian and European customs and traditions The film is not pornographic and does not promote violence.

When to apply? Producers can apply at any time during the year.

Film production evaluation The film shall satisfy production evaluation criteria if: It is not a promotional film, an advertisement, a television program, a music video, a computer game or a television series that is broadcast daily or several times per week and which has certain character schemes and narrative structures that would allow them to be continued endlessly and do not create any artistic value, including but not limited to situation comedies and soap operas. At least three days of shooting take place in the Republic of Lithuania during the course of production of a film (except for animation projects). During the course of production of an animation project, at least 10 percent of all or at least 20 percent of two of the elements listed below will be created or produced in the Republic of Lithuania: – shooting (if the script so requires), – developing and/or creating visual or graphic design of characters, set and props, – compositional layout of a frame, storyboards, – animatic, visual and special effects. At least 51 percent of the crew hired by the Lithuanian film producer are citizens of the Republic of Lithuania or citizens of other European Economic Area countries.

Evaluation procedure Evaluation of applications consists of three stages: examination of the application and application documents by the Lithuanian Film Centre (up to 10 business days); assessment of the cultural content of the film indicated in the application by an Expert Committee (up to 10 business days); evaluation of production criteria of the film indicated in the application by the Lithuanian Film Centre (up to 10 business days).

Validity of Film Qalification Certificate A Lithuanian film producer shall inform the Lithuanian Film Centre in writing about the starting date of principal photography no latter than within 3 business days from the first day of production.

Validity of Film Qalification Certificate The Film Qalification Certificate shall be valid for a period of 6 months from the date of issue during which period the Lithuanian film producer must commence principal photography.

Not Qualified expenses On the consultations due to prepare The Application; The Application preparation expenses; Fines, penalties, court expenses; Acquisition of fixed property, construction, reconstruction costs, if its not related with the production of the film; Travel expenses, if the Republic of Lithuania is not the arrival/departure destination; Developement expenses; Distribution expenses; Payment for actors (if the payment exceeds 4% of the Film or its part production costs).

Lithuanian Tax Incentives will be valid till 31 December, 2018 To the movie production there will be donated 66 millions 400 thousands LTL ( EUR)