Ireland’s Minister for Finance Paschal Donohoe and Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media Catherine Martin have launched a tax credit to support digital games development companies operating in the country.
The Tax Credit for Digital Games will enable eligible game developers to claim back 32% of their design, production and testing expenses. The maximum limit will be €25 million per project and the companies will be required to have spent at least €100,000 on their products.
In a statement, Minister Paschal Donohoe said: “I am delighted to announce the launch of the Tax Credit for Digital Games. 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. The introduction of this credit will ensure that Ireland is competitive in an industry that is estimated to be worth up to €260 billion.”
Minister Catherine Martin commented: “Digital games and growing employment and output from Ireland’s games 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. Today is an important day for the expanding Irish Games industry and this Scheme will help to create jobs in the creative and digital arts in Ireland.”
As of today, game developers in the country can now able to apply for an interim certificate from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media to prove that they have an eligible game. Those who get certificates will be able to apply for remuneration starting from January 1st, 2023.
The news comes just days after the French government extended its video game tax relief scheme to 2028. The scheme, which lets developers claim back 30% of their development costs, has provided French companies with over €220 million in the last five years.
The Italian government also introduced a similar tax break for game studios in May last year, which covers 25% of development costs with a maximum limit of €1 million.