Artists in an emotional video call to sign for the repeal of the new tax reform

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As the representative of the artists Kaspars Zaviļeiskis informs “Delfi”, the video art work “# gives art to breathe” was created by director Jūlija Kova. It is an art protest project against the introduction of a new tax reform during the Covid-19 pandemic, after more than a year of severe epidemiological restrictions left a very large number of people out of work and almost completely shut down many sectors, especially art and culture. Well-known Latvian artists take part in this protest: actors Mārtiņš Vilsons, Rēzija Kalniņa, Ieva Florence-Vīksne, Maksims Busels, Agnese Cīrule, Elza Gauja, directors Andris Gauja, Matīss Kaža, painter Kaspars Zariņš, musicians from the groups “Jumprava” and “DaGam” , Oak, Rolands Che, Patrisha, HIS, Aminata, Agnese Rakovska and Johnyboy.

The creative professions – musicians, actors, artists, dancers, film professionals – along with other related professions and other small and medium-sized enterprises have been hit hardest by the restrictions during the pandemic and are unable to pay increased taxes, especially on minimum social security contributions. from unearned income.

The aim of the art project # gives art to breathe is to be heard by the legislature and to call for an understanding that reviving the economy at the expense of creative industries and already financially affected related professions is not a way out of the situation, but a future stealing of Latvia’s cultural environment.

“A nation without culture has no future,” says actress and director Rēzija Kalniņa. “People without culture become easily manipulated, their lives are only determined by instincts. A country without culture becomes a consumer country. Do we want that? To become biorobots? Join so that there are emotions and feelings in your life – everything that makes you human!”

The 2021 tax reform reflects the misunderstanding of the specifics of creative professional activity on the part of the legislature. The process of creative work should not be recorded in the standard working day rules. Creators and performers of copyright work generate irregular and not always predictable income, which does not automatically allow them to be considered as economic operators.

Reform that includes significant changes for taxpayers, abolition of adapted tax regimes, increase of tax rates and introduction of mandatory social contributions from lost income:

all employees of micro-enterprises lose the status of payer of MUN (micro-enterprise tax), they must receive the status of employee and pay the increased tax rate for employees and employers from 15% (MUN) to 54.09% (PIT – 20% and SSIA – 34.09%);

on 01.01.2021. SIA will not be able to obtain MUN payer status and will automatically lose MUN
status as of 01.01.2022;

the patent fee regime is abolished, maintaining the reduced patent fees only for pensioners and persons with group 1 and 2 disabilities;

recipients of royalties must register their professional activity as an economic activity and obtain the status of a performer of economic activity by increasing tax rates, performing tax accounting and calculations themselves; Recipients of royalties who have not registered an economic activity and earn income from the payment of intellectual property are subject to the new PIT tax regime with an increased tax rate: the payer will withhold tax of 25% and 40% depending on the amount of remuneration and does not apply 25% or 50% expenditure. Annual income is not subject to differentiated non-taxable minimum and tax benefits;

minimum state social insurance mandatory contributions (SSIAI) have been introduced for those employees of MU and SIA, recipients of royalties and self-employed persons whose income is less than the minimum wage set by the Cabinet of Ministers 500 euros per month or 1500 euros per quarter, which must be paid from their own resources.

As a result, the reform is already being implemented in a difficult period for the cultural environment and other affected areas at the expense of vulnerable people, directly affecting MU and SIA employees, patent payers, royalty recipients and the self-employed, Zaviļeiskis reports on behalf of artists.

“Already during the pandemic period, the restrictions prevented the possibility to implement ongoing projects, perform in concerts, engage in artistic activities, forcing to look for other sources of income,” says singer Patrisha.

“The new tax reform also deprives many of the opportunity to create art and focuses only on survival in search of other ways to make money,” continues singer Aminata.

“We – the creative professions – have come together to support all those who have suffered from severe restrictions and to stop the tax frenzy during a pandemic!” says video # gives the art to breathe director Julia Kova. “The tax reform of 2021 will be the collapse of Latvia’s cultural life, both now and in the future. The new video was created on behalf of all those affected by this insane reform. This country creates many talents, but these talents need logical support, just like a child needs parents.”

“Those who create art need time and freedom to conceive and nurture new ideas,” emphasizes director Andris Gauja. “Every effort should be made to provide these opportunities, not to deprive them, which will unfortunately happen by introducing mandatory monthly payments, which are not even really related to whether the artist has any lucrative works at all at that time.”

“We hope to be heard so that we can continue to contribute to the development of this country and folk culture both in Latvia and abroad,” emphasizes producer Vadims Zaikovskis.

“As creative people, we have decided to express our misunderstanding about the new reform with a non-standard artistic approach,” adds operator Ritvars Bluka.

Taking into account all the above, everyone on the manabalss.lv platform is invited to sign up for the repeal of the new tax reform in order to create a more meaningful vision for the future.

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