Video Game Tax Credit

Launched in 2007, the Video Game tax credit scheme aims to grow France’s already world-renowned gaming sector, placing it at the forefront of an increasingly culturally influential and impactful industry, wherein consumers demand innovation and fresh experiences every year.

The scheme’s eligibility criteria were extended in 2014 to include smaller “indie” games with a development budget of €100,000 and up, as well as gaming titles intended for mature audiences with a PEGI age rating of 18+. A wide variety of games are therefore eligible, covering console, PC and even mobile games, developed by either independent or subsidiary firms. Subsequently in 2017 the tax credit rate was raised from 20% to 30%, significantly doubling the annual tax credit limit from €3m to €6m.

Further eligibility is determined by “cultural” criteria, such as the perceived originality and innovation of the title, as well as its suitability for a wide audience and the level of involvement from French and European developers. When a functional version of the game is available, the development company may apply for final approval from the National Film Centre, which needs to be obtained within 36 months or the credit must be refunded.

The tax credit will apply to costs such as salaries for those assigned directly to the production including the associated social charges as well as the purchase of intellectual property rights (games based on an author’s written works for example). Furthermore, operating expenses are covered, such as property rent, the purchase of equipment and materials for production, business trip expenses etc. If this credit exceeds the tax due for the financial year, the excess is refunded.

Here at Maupard, we can help you to establish yourself in France, where you can reap the benefits of generous schemes such as this one. Please get in touch with us if any of this is of interest to you.