France to Enact Tax Breaks for Video Games

December 16, 2014 Taxation in France

PARIS – France may soon see an influx of small-scale game development studios, as the government wins approval to increase the tax breaks offered to developers.

On December 15th the French Video Games Trade Assocation (SNJV) issued a new statement showing that the European Commission has approved the proposal by the government of France to reform the tax breaks provided to video game manufacturers operating in the country.

Currently, game developers in France are eligible for tax breaks for games with a production cost in excess of EUR 150 000, however the threshold has now been reduced to EUR 100 000, and the types of expenses eligible for the break has been expanded.

The tax changes were first proposed in 2013, however they required approval from the European Commission before implementation.

The proposed changes have been eagerly anticipated by game developers in France, and are expected to not only boost investment and activity in the sector, but to also attract more game development studios to be established in the country, and also to encourage the development of lower-budget games, such as mobile games.

Photo By: Joey