Digital Games Relief
Expenditure
'Qualifying expenditure' is expenditure incurred by a company on the design, production and testing of a digital game. It is limited to:
- employment costs
- equipment costs
- consumable items and intellectual property rights
- and
- subcontractor payments of up to €2,000,000.
It excludes:
- expenditure in designing the initial concept for the digital game
- expenditure in debugging a completed digital game or carrying out any maintenance on a completed digital game
- and
- expenditure on payments to sub-contractors exceeding €2,000,000.
Expenditure for which the company claimed the Film Relief or the R&D Corporation Tax Credit is excluded from the credit. Any costs met, or to be met, by funding from another source such as a grant, are also excluded.
'Eligible expenditure' means the portion of the qualifying expenditure spent in Ireland or the European Economic Area (EEA).
The credit per digital game is 32% of the lowest of:
- eligible expenditure
- 80% of total qualifying expenditure
- or
- €25 million.
The qualifying expenditure amount must be at least €100,000.
Next: Claiming the tax credit