🎦 Sole Proprietors in the Film Industry May Be Exempted from VAT
The Government of the Russian Federation has issued a favorable opinion on a bill proposing the introduction of the status of "sole proprietor operating in the film industry" into legislation, along with extending a value-added tax (VAT) exemption to such individuals.
The author of the initiative, State Duma Deputy Stanislav Naumov, suggests amending Subparagraph 21 of Paragraph 2 of Article 149 of the Tax Code of the Russian Federation. Currently, this tax break applies exclusively to legal entities—namely, film companies. It exempts from VAT the production of film products, as well as the assignment of distribution and exhibition rights for movies that have received a national film certificate.
Extending this provision to sole proprietors will level the playing field in a market where a significant portion of specialists, producers, and contractors are registered precisely under this status. As noted in the explanatory note, the measure will reduce the production costs of domestic films holding national status, boost their competitiveness, and incentivize the inflow of private talent and resources into the film industry.
Despite potential budget revenue losses during the implementation stage, the Cabinet supported the concept of the document, paving the way for its consideration in the State Duma.
Source: Interfax
