Difference between revisions of "Global Games Development Incentives"
(→Canada) |
(→Canada) |
||
Line 155: | Line 155: | ||
|Interactive Digital Media Tax Credit. 40% of labour, no cap. Up to $100,000 for marketing and distribution OR for Larger gama+C12e companies: 35% of labour, no cap, no need to meet 80/25 criteria. | |Interactive Digital Media Tax Credit. 40% of labour, no cap. Up to $100,000 for marketing and distribution OR for Larger gama+C12e companies: 35% of labour, no cap, no need to meet 80/25 criteria. | ||
|80/25 rule - 25% of 25% of the total development labour to create the product must be attributable to eligible wages of employees of the qualifying corporation. Also 80% of the total development labour to create the product must be attributable to eligible wages and eligible remuneration paid to individuals, personal corporations, or sole proprietorships that do not have employees. | |80/25 rule - 25% of 25% of the total development labour to create the product must be attributable to eligible wages of employees of the qualifying corporation. Also 80% of the total development labour to create the product must be attributable to eligible wages and eligible remuneration paid to individuals, personal corporations, or sole proprietorships that do not have employees. | ||
+ | | | ||
+ | |- | ||
+ | |'''[http://gameplan.ca/ Prince Edward Island]''' | ||
+ | |Tax offset | ||
+ | |Video Game Labour Rebate. Provides a tax offset for video game developers (rate not specified). | ||
+ | | | ||
| | | | ||
|- | |- |
Revision as of 13:51, 30 March 2021
UK
Country | Type | Benefits | Criteria | Notes / Limitations |
UK | Tax break | Video Game Tax Relief. 20% of qualifying spend (if wholly developed in EEA). Can claim an additional deduction in computing their taxable profits, and where that additional deduction results in a loss, to surrender losses for a payable tax credit. | Cultural test. 25% of core expenditure is incurred on goods or services provided from within European Economic Area / Lead VGDC must be in UK. | Subcontracted costs are subject to a cap of £1million per game. Cannot claim R&D relief in conjunction. |
Please read the dedicated Ukiepedia page for more detail on the UK's Video Game Tax Relief.
Europe
Country | Type | Benefits | Criteria | Notes / Limitations |
Belgium | Tax break | Expansion of Film & TV Belgian Tax Shelter. Tax Shelter would provide additional funding of up to 25-30% of total qualifying expenses in the EEA. Allows finance of up to 40-45% of Belgian-eligible expenses.. | Awaiting approval from European Commission. Spend must specifically be within Belgium. | |
France | Tax break | Tax Credit for Video Games. Tax relief for 30% of all eligible expenses incurred. Limit of receivable tax credit increased to 6million. | Cultural test. Production costs exceeding €100 000. | A game deemed excessively violent (meeting a criteria) will not benefit. |
Germany | Cultural fund | German Games Fund. 50 million EUR available for both prototypes and fully developed games. | Culture test. At least 60% of development costs spent in Germany. Prototype development costs must be at least 30,000 EUR. Grant amounts to 50% of development costs at a max of 400,000. | |
Italy | Tax credit | Planned since late 2016, a new law would provide for the introduction of four different types of tax credits, between 15 and 30%, for production companies, distribution companies, national executive and post-production companies, and companies and trusts that invest in the sector. | Delayed | |
Poland | Cultural fund | Pilot program. 18million EUR investment fund for games studios. | Have a budget of 500,000 Polish zloty to 20 million zloty. A project timeline of up to three years. Must consists of industrial research and experimental development or experimental development only. Expenses with sub-contractors may only make up 60 percent of eligible costs of the overall project. All work must be done in Poland. | |
Spain | Delayed |
USA
Rather than a national-level federal tax offset for video game development, tax offsets in the USA have been introduced at state-level in an attempt to draw more US businesses away from major game development hubs such as California.
Country | Type | Benefits | Criteria | Notes / Limitations |
Puerto Rico | Tax credit | Qualifying media projects, including video games, are eligible for a 40% tax credit on all payments to Puerto Rico resident companies and individuals, and a 20% tax credit on payments on all non-resident spending. | Projects must spend a minimum of $100,000. | |
Tennessee | Cash rebate | Spend a minimum of $200,000 on qualified Tennessee spend, either per episode or per project, you are eligible for a cash rebate in the form of a 25% grant. The film and TV incentive program was enhanced in May 2018 to include computer-generated imagery and interactive digital media, as well as stand-alone, post-production musical scoring and editing. | Spend a minimum of $200,000 on qualified Tennessee spend. | |
Texas | Cash rebate | Video Game and XR Incentive. Qualifying video game projects are eligible to receive a cash grant up to 22.5% of Texas spending of eligible Texas spending. | Minimum in-state expenditure of $100,000. 60% of production days completed in Texas. 70% of employees and contractors working in Texas must be Texas residents. | |
Utah | Tax credit | Utah Motion Picture Incentive Program (expanded to include interactive entertainment). Up to 20% tax credit on payroll and in-state spending; this only applies to new state revenue generated by "digital media" companies. | Spend a minimum of $500,000 in Utah. | |
Virginia | Tax credit | Virginia Motion Picture Tax Credit Fund. Tax credits equal to 15-20% of the production company's qualifying expenses. | Spend a minimum of $250,000. | Must include a reference to Virginia in credits. |
Washington | Tax credit | Interactive media productions with qualifying costs of at least $500,000 are eligible for tax credits equal to 30% of the company's qualifying expenses. Note: in 2017, this tax incentive was extended for 10 years. |
Canada
In Canada, screen tax incentives are primarily implemented at the provincial rather than the federal level.
Country | Type | Benefits | Criteria | Notes / Limitations |
British Columbia | Tax credit | Interactive Digital Media Tax Credit. 17.5% of eligible salary and wages incurred in the tax year. | Taxable Canadian corporation with permanent establishment in British Columbia. | Application fee of $1000 to $5000 depending on number of employees. |
Manitoba | Tax credit | Interactive Digital Media Tax Credit. 40% of Manitoba labour costs with a max tax credit of CA$500,000. CA$100,000 in eligible marketing and distribution. | For 40%: company must pay 25% of its company salaries to Manitoba residents. For 35%: if a company pays less than 25% of its salaries to Manitoba resident & incurs at least $1m in qualifying Manitoba labour expenses annually. | |
Newfoundland & Labrador | Tax credit | Interactive Digital Media Tax Credit. 40% of labour directly attributable to interactive digital media products, a max of $2m/year (or $0k per employee per year). | ||
Nova Scotia | Tax credit | Digital Media Tax Credit. Whatever is the lesser of 50% of labour (plus 10% of expenditure for productions outside metro Halifax zone); OR 25% of expenditure (plus 5% of expenditure outside metro Halifax zone). Up to $100,000 of marketing and distribution spend | Permanent establishment in Nova Scotia. | |
Ontario | Tax credit | Interactive Digital Media Tax Credit. 40% of labour, no cap. Up to $100,000 for marketing and distribution OR for Larger gama+C12e companies: 35% of labour, no cap, no need to meet 80/25 criteria. | 80/25 rule - 25% of 25% of the total development labour to create the product must be attributable to eligible wages of employees of the qualifying corporation. Also 80% of the total development labour to create the product must be attributable to eligible wages and eligible remuneration paid to individuals, personal corporations, or sole proprietorships that do not have employees. | |
Prince Edward Island | Tax offset | Video Game Labour Rebate. Provides a tax offset for video game developers (rate not specified). | ||
Quebec | Tax credit | Quebec Production of Multimedia Titles Tax Credit. 30% of labour, plus 7.5% if French language. | Application fees: Initial Qualification Certificate is $118. Annual application then based on production expenses up to $3,556 per title. |