Specialist
Those applying for relief must demonstrate a project promotes Irish and European culture
The Finance Bill 2021 puts on a legislative footing the Budget Day announcement from the Minister for Finance on the introduction of a credit for investment in digital gaming, and is a welcome step in the further development of the sector
Commenting on the measure, Caroline O’Driscoll, Tax Partner, Deloitte commented:
“We know from announcements made on Budget Day that the credit will be available at a rate of 32% on expenditure up to a maximum expenditure cap of €25million, and the inclusion of the relief in this year’s Finance Bill gives us further detail on how the relief will work.
“We now know that the relief will be available for certain games which integrate digital technology, are capable of being published on an electronic medium, are controlled by software enabling the person playing the game to interact with the dynamics of the game and incorporates at least three of the following: text, sound, still images or animated images. Any company looking to qualify for the scheme will be required to demonstrate, through a certification process, that their game makes a contribution in the promotion and expression of Irish and European culture through its setting, principal characters, language or subject matter. It’s really encouraging to see this positive focus as the Minister seeks to increase employment and activity in this industry, which is estimated to be worth well over €100 billion globally.
“The relief is subject to a commencement order and as such will not take effect until such time as an order is made; however, given the valuable role this credit may play in encouraging growth in the technology and design space in Ireland we would hope that such a commencement order should be forthcoming shortly.”