The Irish government is considering targeted tax relief to support its videogame industry, with one politician describing the game business as "an enormous global industry with great potential and benefit for job creation."
Ireland's Sunday Business Post reports that culture minister Jimmy Deenihan (above) is open to the prospect of extending Section 481 - which allows investors to claim full tax relief on an investment of up to €50,000 in a film or television production - to cover videogames as well.
"I will publish a report shortly on the creative industry and, although it will not deal directly with [Section 481], it will obviously bring much attention to the entire sector," Deenihan said in response to a question from Robert Troy of Fianna Fail.
When asked directly if tax relief could be offered to the Irish videogame industry, he replied that he would "certainly consider it, and will suggest it to the minister for finance."
Perhaps mindful of the UK's handling of games tax relief - chancellor George Osborne reneged on plans to introduce the measure last June, dismissing it as "poorly targeted" - Deenihan made it clear that Section 481 would only be extended if did not pose "too much of a loss to the exchequer."
In 2009, a total of €99.9 million was invested in Irish film and television projects, generating a tax benefit of some €40.9 million. The likes of Blizzard, PopCap, Zynga, Havok and Zenimax have bases in the Irish Republic.
Source: Sunday Business Post
Comments
3Ireland already has a low corporation tax rate, coupled with a massive tax holes allowing multinationals to sequester billions of European profits to Caribbean safe havens without paying any tax.
And now they want to open more?
Yet when the UK bailed them out, we failed to assert any pressure on their tax regime, because Boy George Osborne pandering of sovereign values over realism.
http://news.bbc.co.uk/democracylive/hi/house_of_commons/newsid_9216000/9216281.stm
Our tax reliefs are pretty much the only incentive companies have to base themselves here. Asking Ireland to give them up would also eliminate any chance we have to repay the bailout, which is a loan don't forget. Be pretty daft to give us the loan and then cripple our chances of paying it back, everyone loses then. Pretty sure companies would up sticks if it was removed as well. Could do with more incentives like this in the IT sector, as a lot of IT graduates are forced to emigrate as it is due to the mismatch of jobs -> graduates in the country.
You're effectively saying that Irish infrastructure and talent is so poor that the only way you can compete is through tax breaks. I don't know Ireland as you do, but it's a developed English speaking country, it shouldn't be that difficult to raise your 12.5% corporate tax rate and to close some of those loopholes.
Google pay 2.4% tax on their corporate earnings outside of the US due to Irish laws.
http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm