It’s done! The European Commission announced on Monday that it had approved Belgian aid worth €36 million to support the production of video games in the spirit of the “tax shelter” that supports film production in Belgium, thus validating its extension to gaming.
After two years of investigation, the commission has given its verdict
In April 2020, the EU executive opened an in-depth investigation to assess whether the Belgian video game production aid scheme was in line with EU state aid rules. However, it had already approved the tax shelter to support film production in 2014. Companies investing in film production thus benefit from a tax advantage, provided they make certain expenditures in the territory.
This tax incentive was then extended in 2017 to the performing arts and in 2019 to the video game industry.
The Commission’s investigation into this particular tax scheme was opened in April 2020 under Article 107 of the Treaty on the Functioning of the European Union, which allows Member States to grant aid to promote culture and heritage conservation.
A necessary and appropriate scheme
In a statement issued on Monday, the EU executive said it had found that the removal of the territorial expenditure condition by Belgium, following the opening of the in-depth investigation, allows all expenditure in the European Economic Area (EEA) on goods and services related to the production of video games to benefit from the tax shelter.
The Commission also considered that the scheme was “necessary” and “appropriate” to facilitate the development of cultural video games, thus contributing to the promotion of culture. Finally, it concluded that the measure is proportionate, i.e. limited to the minimum necessary, and that it will have a limited impact on competition and trade between Member States.
“On this basis, the Commission has authorised the scheme under EU state aid rules,” the statement concludes, pointing out that the decision was for an amount of €36 million and was valid until 31 December 2027.
The tax shelter for video games will enter into force on 1 January next year.
3 comments
So what does this mean exactly? Will the state invest into gaming projects for culture purposes or do companies focus on making video games get a certain tax advantage?
Anyone here that could provide more insight?
I also read somewhere(Knack or Humo)that professional gamers are given a tax advantage like football players.
I give Larian studio a pass, they make good games.