Tax credit to support game development launches in Ireland
Companies in the country can claim 32% of their design, production and testing costs back
The Tax Credit for Digital Games was unveiled in Ireland today, a new option for developers in the country to subsidise costs.
The relief is a refundable corporation tax credit that lets eligible companies claim back 32% of the costs incurred on a digital game's design, production and testing.
Companies can claim up to a maximum limit of €25 million per project, with a minimum spend of €100,000.
The tax was launched and backed by Ireland's Minister for Finance, Paschal Donohoe, and Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media, Catherine Martin.
"Ireland is already a world leader in other areas of the audiovisual sector including film, television and animation production, I believe that this credit will be instrumental in replicating such successes in the digital gaming sector," said Donohoe. "The introduction of this credit will ensure that Ireland is competitive in an industry that is estimated to be worth up to €260 billion."
Martin added that growing employment and output from Ireland's game sector is a "key part of the government's audio-visual action plan."
"The Digital Games Tax Credit will lead to support for the development of indigenous games companies along with increased investment from overseas games companies looking to locate in Ireland," Martin said.
Last week, the French government also extended its own video games tax credit scheme until 2028, and updated the criteria to focus more on original IP, technological innovation and projects featuring European identity or heritage.