Budget 2022: Deloitte comments on digital gaming sector tax credit has been saved
Budget 2022: Deloitte comments on digital gaming sector tax credit
Tax credit should have similar impact as R&D tax credit and film reliefs in driving growth
Ireland has long been established as a leading place for investment from technology companies and is home to many of the world’s leading computer hardware, software and social media businesses. The introduction of a digital gaming sector tax credit is the next step in Ireland’s journey towards an innovative and knowledge-based economy, and the Minister’s announcement on Budget Day is a welcome development.
Commenting on the measure, Caroline O’Driscoll, Tax Partner, Deloitte commented:
The announcement from the Minister of a digital gaming sector tax credit will leverage off the well-established Irish film and animation sectors. The global gaming industry is estimated to be worth over €100 billion, with the Minister acknowledging that employment in this sector in Ireland has not matched global trends. The digital gaming credit will be available at a rate of 32% on eligible expenditure up to a maximum limit of €25 million per project. We know from past experience with the Research and Development tax credit and indeed film tax relief how valuable such targeted measures can be - the R&D incentives in Ireland are, in part, credited with assisting in developing a strong presence in manufacturing and pharmaceuticals, while the film tax relief has helped in growing employment significantly since its introduction. Building on that success, the introduction of a tax credit to encourage growth in digital gaming is a welcome development for the media industry in Ireland.
Issued by Murray on behalf of Deloitte Ireland
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