The minister promises to keep the support system for foreign cinema shooting unchanged

The TV3 program “Nothing personal” reported that the currently existing system in Latvia provides that the LIAA applies to the FM and the Cabinet of Ministers at the beginning of the year to reserve a certain amount in the state budget, which will be reimbursed to the filmmakers of international cinema projects when they have finished their work and spent the money in Latvia. The state’s benefit is always greater, that is, the state budget occupies more than is spent in support payments.

In December, LIAA reviewed and supported seven new foreign film projects to be shot in Latvia. They are submitted by local film producers who have found and persuaded foreign colleagues to come to Latvia to work.

This year’s forecast was that the compensation will be around three million euros, but the filmmakers will contribute more than four million euros to the state budget. In addition, the total amount of money that cinema people could bring to Latvia this year and spend here is estimated at around 16 million euros, reports “Nekā peresika”.

However, the FM wants to change the procedure, determining which taxes will be compensated and which will not. So far, both value added tax (VAT), personal income tax (IIN), and mandatory state social insurance contributions (VSAOI) have been reimbursed, but the changes proposed by the FM envisage compensating only VAT.

Iveta Strupkāja, head of LIAA, explained to the program that the applicants, when applying for the program, had taken into account the existing conditions, but the changes foresee a completely different amount of support.

Film producer Andrejs Īkis emphasizes that the country suddenly started to change the rules of the game, which it has already approved. In addition, foreign partners have already started spending money, including in Latvia, where research is being conducted.