Latvia

Last update: September, 2019

The Constitution of the Republic of Latvia, Chapter 8, 113 states: "The State shall recognise the freedom of scientific research, artistic, and other creative activity and shall protect copyright and patent rights." and 114 states: "Persons belonging to ethnic minorities have the right to preserve and develop their language and their ethnic and cultural identity."

In 2014, amendments were adopted. In the introduction of the Constitution it is said that "Since ancient times, the identity of Latvia in the European cultural space has been shaped by Latvian and Liv traditions, Latvian folk wisdom, the Latvian language, universal human and Christian values. Loyalty to Latvia, the Latvian language as the only official language, freedom, equality, solidarity, justice, honesty, work ethic and family are the foundations of a cohesive society. Each individual takes
care of oneself, one’s relatives and the common good of society by acting responsibly toward other people, future generations, the environment and nature."

Last update: September, 2019

The Law on Budget and Financial Management (1994) determines the procedures for the formulation, approval and implementation of the state budget and local government budgets, and responsibilities in the budget process. The Law on the State Budget is adopted every year, defining the distribution of the state budget and transfers to local government budgets.

The Law on the State Culture Capital Foundation (2003, came into force in 2004) defines the legal status of the State Culture Capital Foundation (CCF) as a public foundation, the establishment and the procedures for the accumulation, management and utilisation of its resources. The law was first adopted in 1997, determining that the budget of the CCF was to be supplemented from a 3% alcohol and tobacco excise tax. In 2003, a new Law on the CCF was adopted, which changed its legal status to a public foundation and changed the source of its funding. It was decided that the CCF would be part of the budget of the Ministry of Culture.

After many years of public debate in 2018, amendments were adopted deciding that from the year 2022 onwards the budget of the CCF is formed from the 3% alcohol excise tax; 2% tobacco excise tax; 1,37% lotteries tax; and 2,21% gambling tax.

Last update: September, 2019

The social protection of artists in Latvia is regulated by general legislation, the Labour Law (2002) and the Law on State Social Insurance (adopted in 1997, in force from 1998).

There were no special provisions for self-employed artists to have access to the social security system. Many artists work in other fields to earn a living, for example in education, mass media, or advertising. After public debate, the Law on the Status of Creative Persons and Professional Creative Organisations was adopted in 2017 (into force from 2018). The aim of the law is to provide support to creative persons who due to the specific employment nature do not receive regular income or are experiencing temporary loss of capacity to work (long-term unemployment or illness). Assistance is provided directly to so-called freelance artists or creative persons who are not employed by an employer, but receive a payment based on the author contract. The law will be applicable to about 4000 persons in 28 creative organisations. Support is administered by the Council of the Creative Unions of Latvia in cooperation with the State Culture Capital Foundation. See also 2.3.

In 2004, a Law on the Service Pension of State and Local Government Professional Orchestra, Choir, Concert Organisation, Theatre and Circus Artists was adopted (into force from 2005). The purpose of this Law is to ensure the right to a service pension for state and local government professional orchestra, choir, concert organisation, theatre and circus artists in light of the fact that working in these professions over a period of time is connected with the loss of one's professional skills before reaching the pension age, and to lay down the procedures for the granting, calculation and payment of the service pension.

Last update: September, 2019

The Law on Value Added Tax (2012; entry into force from 2013) stipulates a standard VAT rate of 21%. A reduced rate of VAT at 12% shall be applied to the supply of school literature and original literature issued in the form of printed publication or electronic publication (literary works – fiction, children’s literature, scientific and popular science literature, reference literature, religious literature, literary memoirs – and their translation), except supply of the abovementioned literature online. The reduced tax rate is also applied to supply of newspapers, magazines, newsletters and other periodical publications in the form of printed publication or electronic publication (except for the supply of the abovementioned periodical publications) which are issued at least once in three months and one-off circulation that exceed 100 copies. Reduced rate of tax shall be applied to accommodation services in tourist accommodation sites as well.

VAT is not imposed on the following cultural services: theatre and circus performances, concerts, events intended for children, events of amateur art groups and events intended for charity purposes, visits to State recognised museums, libraries, exhibitions, zoological gardens and botanical gardens including cultural and cultural education measures organised by such institutions, services of provision of public access to and use of the information present in the library collection; the royalty received by the author for his work and use thereof, as well as the consideration received by the performer and phonogram producer for the subject of related rights and use thereof (Article 52).

There have been several changes in the law in recent years due to the economic crisis. At the end of 2009, the Parliament endorsed a national macro-economic stabilisation plan proposing an increase in VAT from 18% to 21%; in 2011 VAT was increased to 22%, and in 2013 was reduced to 21%. The reduced VAT rate was increased from 5% to 10% in 2009 and from 10% to 12% in 2011.

The Micro-enterprise Tax Law was introduced in 2010, small enterprises (also in the field of creative and culture industries) may benefit from this tax.

The Law on Personal Income Tax (adopted in 1993, came into force in 1994) determines income tax levels. The tax is imposed on income acquired by a natural person. A progressive personal income tax is introduced, the lowest rate being 20% (it is also imposed on the income generated from authors' royalties).

Cabinet Regulation Number 899 on Procedures for the Application of the Norms of the Law On Personal Income Tax (by the Law on Personal Income Tax) stipulates that a taxpayer has the right to deduct from the amount of author's fees (royalty) the expenditures of the author of scientific, literary and artistic works, discoveries, inventions and industrial models related to the creation, publication, performance or other utilisation of the works (25-50% depending on the type of the author’s work).

Law on State Social Insurance (adopted in 1997, in force from 1998) determines the status of self- employed people, who earn their income by individual work (includes those who receive royalties – copyright or neighbouring rights remuneration). In 2019, the total rate of social insurance payable is 35.09%: 24.09% by the employer and 11% by the employee. Social insurance payments for self- employed persons and those receiving authors’ fees are minimum 5%.

The Law on Enterprise Income Tax (2017; came into force in 2018) stipulates that the tax is 20% of taxable income. The tax shall not be imposed on state or municipality funded institutions and on associations or foundations having no purpose to make profit. Article 12 defines tax relief for donors.

The Public Benefit Organisation Law (2004) defines public benefit activity: it is an activity that provides a significant benefit to society or a part thereof, especially if it is directed towards charitable activities, protection of civil rights and human rights, development of civil society, education, science, culture and promotion of health and disease prophylaxis, support for sports, environmental protection, provision of assistance in cases of catastrophes and extraordinary situations, and raising the social welfare of society, especially for low-income and socially disadvantaged person groups.

Last update: September, 2019

Employment legal relationships are governed by the Constitution of the Republic of Latvia, the norms of international law which are binding on the Republic of Latvia, the Labour Law (2002) and other laws and regulations, as well as by collective agreements and working procedure regulations. The Labour Law respects the principle of equal rights.

Law on State Social Insurance (adopted in 1997, in force from 1998). See chapter 4.1.4.

Labour Protection Law (2001, came into force in 2002)

Law on Trade Unions (2014) defines that a trade union is a voluntary association of persons that has been established to represent and protect labour, economic, social and professional rights and interests of employees. Moreover, it says that the number of persons who establish a trade union of an undertaking cannot be less than 15 or less than one fourth of the total number of the persons employed at the undertaking.

Last update: September, 2019

The Constitution of the Republic of Latvia states that "The State shall recognise the freedom of scientific research, artistic and other creative activity, and shall protect copyright and patent rights".

The Copyright Law was adopted in 2000 and replaces the law that was adopted in 1993 On Copyright and Neighbouring Rights and it is fully harmonised with the EU acquis communataire.

Law on Collective Management of Copyright was adopted in 2017. The purpose of the Law is to create legal preconditions for efficient performance of collective management of copyright and related rights.

The Criminal Law (adopted in 1998, came into force in 1999) in section 148 defines the applicable sentence for the infringement of Copyright and Neighbouring Rights. Also, the Latvian Administrative Violations Code section 155.8, sets the fines for unlawful acts in copyright and neighbouring rights.

The Law on Film (2010) defines the distribution and protection of audiovisual heritage.

Latvia is a member of several international treaties and the regulatory enactments of Latvia encompass legal provisions arising from the EU directives. (For a complete list, see the Ministry of Culture website.)

Last update: September, 2019

The Data State Inspectorate is responsible for the implementation of the data protection legislation:

• Electronic Documents Law (2002, came into force in 2003)
• Personal Data Processing Law (2018)

The terms specified in Article 4 of the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (hereinafter - the Data Regulation) are used in the Law.

Last update: September, 2019

Official Language Law (1999; came into force in 2000), see also chapter 2.5.4.

See chapter 2.5.4 about language provision in the Electronic Mass Media Law (2010).

Last update: September, 2019

The Law on Local Governments (1994) defines the division of labour and responsibilities between the state and local authorities in providing services, including those in the cultural field. Section 15 of the Law on Local Governments defines the autonomous functions of local governments including the following: "to maintain culture and facilitate the preservation of traditional cultural values and the development of creative folk activity (organisational and financial assistance to cultural institutions and events, support for the preservation of cultural monuments, and others)."

The Law on Voluntary Work was adopted in 2015 and came into force in 2016. Its purpose is to encourage society members to take part in voluntary work.

Last update: September, 2019

The Ministry of Culture is responsible for most of the legal cultural competence in Latvia. There are legal provisions for cultural organisations defined in special laws, which subordinate the respective cultural branches to the Ministry of Culture even if the organisations are established and administered by the municipalities.

Latvia has introduced numerous laws in the cultural sector, both setting out cultural policy frameworks in general and in concrete sectors. Moreover, there are laws, which define the operation of a particular institution: establishing the operations, governing structures and procedures for financing a cultural institution.

The purpose of the Law on Cultural Institutions (1998) is to define the types of culture institutions in Latvia, sources of funding for these institutions and their economic activities, and state guarantees for the functioning of culture institutions. It sets out general cultural policy frameworks. General settings are defined also in the laws concerning particular art fields, such as the Law on Libraries and the Law on Museums. In 2010, the Law on Film was adopted. A new Law on Archives came into force in 2011. It was followed by a major reform in the administration of public archives.

The draft Law on Intangible Cultural Heritage has been elaborated in 2015 by the Ministry of Culture and was adopted in 2016.

Table 2: List of cultural legislation, Latvia

Table 3: International legal instruments implemented by Latvia in the cultural field

Last update: September, 2019

The cultural monuments are preserved by the following laws: Law on the Protection of Cultural Monuments (1992); Law on Dome Church and Monastery Ensemble (2005); and Law on Financing Preservation of Sacral Heritage (adopted in 2017, came into force in 2018).

The Law on Museums passed by the Saeima (Parliament) in 2005 (came into force in 2006), defines tasks and functions of public and state accredited museums and marks them as institutions that serve society and its development. This Law applies to public museums, as well as accredited private museums.

In 1998, a Law on Museums was adopted for the first time to define the basic principles of the operation of museums and launch new structural changes in the museum sector (accreditation of museums, governance etc.). In 2018, amendments were adopted harmonising the definition of the ‘museum’ with the definition adopted by the International Council of Museums: “A museum is a permanent institution which is accessible to the public and serves the society and its development and which acquires, stores, conserves, researches, communicates, and exhibits the tangible and intangible heritage of humanity and the environment in order to promote research, education of the public, and to provide emotional pleasure to the public, and the activities of which in implementation of the functions of a museum are not orientated towards earning profit.”

In 2006, the Law on the Museum of Occupation of Latvia was adopted.

The Law on Archives (adopted in 2010, came into force in 2011) introduced structural changes in the sector when, after reorganisation, 18 state archive institutions were merged into one.

In the field of intangible cultural heritage, there are two significant laws. The Law on the Song and Dance Celebration (2005) aims to preserve, develop and pass on to future generations the tradition of the Song and Dance Celebration, a unique tradition that is common for all three Baltic countries. In 2003, UNESCO proclaimed the tradition and symbolism of the Song and Dance Celebration in Latvia, Estonia and Lithuania as a masterpiece of the oral and intangible heritage of humanity.

In 2016, the Intangible Cultural Heritage Law was adopted. It defines the basic concepts and creates an institutionally organisational system to provide the environment and conditions necessary for targeted support to the safeguarding of the intangible cultural heritage, as well as to initiate a public dialogue. With this Law, the National List of Intangible Cultural Heritage was established.

Last update: September, 2019

Several laws on cultural institutions of a national significance have been elaborated. The Law on Latvian National Opera and Ballet (2002) prescribes the legal status, activity, procedures for financing and supervision of the State limited liability company "Latvian National Opera".

Law on the Service Pension of State and Local Government Professional Orchestra, Choir, Concert Organisation, Theatre and Circus Artists (2004, came into force in 2005). See chapter 4.1.3.

See chapter 4.2.2 about the Law on the Song and Dance Celebration (2005).

Last update: September, 2019

There are no specific laws for visual and applied arts.

Last update: September, 2019

The purpose of the Law on Libraries (1998) is to specify public relationships in the field of libraries, in order to ensure the operation of libraries and to facilitate the preservation and development of Latvia's cultural heritage. This law applies to all libraries, which directly or indirectly receive funds from the State budget and local government budgets or State budget or local governments budgets, as well as to registered private libraries.

The Law on the National Library of Latvia was adopted in 1992 and came into force in 1993. The National Library of Latvia is a public universal academic library, which serves the intellectual development of the whole nation. The Law states that the National Library of Latvia shall be the State cultural institution of national significance under the supervision of the Ministry of Culture. The National Library of Latvia is keeper of all printed publications of the Republic of Latvia, creator of national bibliographic resources and the development centre of the State library system. For the purpose of the construction of the new building of the National Library, a special law was adopted in 2003 (Law on the Realisation of the National Library).

The Legal Deposit Law (2006) ensures the permanent preservation, processing and public use of the national cultural heritage – all the printed publications, unconventional or “grey literature”, electronic publications and online publications of Latvia.

Last update: September, 2019

The Law on Film was adopted in 2010 and sets out general administrative regulations, such as registration of film producers, classification, protection of audiovisual heritage etc. It also sets general guidelines for public funding distribution.

The new Electronic Mass Media Law was adopted in 2010. The previous Law on Radio and Television

(1995) was outdated and not in accordance with the EU Audiovisual Media Services Directive.

Last update: September, 2019

There are no specific laws for design and creative services.