Digital Games Relief
Overview
The digital games Corporation Tax (CT) credit is a relief for the digital gaming sector. It can be claimed on certain costs incurred in the development of digital games. It is available to digital games development companies.
The credit aims to promote the development of culturally Irish and European digital games. To qualify, digital games must satisfy a cultural test administered by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
The credit per digital game is 32% of the lowest of:
- eligible expenditure
- 80% of total qualifying expenditure
- or
- €25 million.
For accounting periods commencing before 1 January 2024, the CT owed by the company is reduced by the amount of the credit. Where the relief is greater than the CT due, the excess amount is paid to the company.
For accounting periods commencing on, or after, 1 January 2024, the credit is not offset against the company’s CT liabilities. The company must elect to have the credit treated as an overpayment, for offset against tax liabilities, or repaid.
Next: Eligibility