Tax Incentive in France : the video game tax credit
You are video game editor and you wish to implant yourself in Europe? Consider France, along with its skilled labor in this sector. Indeed, there is a very an interesting tax incentive in France for this activity.
The Video Game Tax Credit (CIJV: Crédit d’Impôt Jeux Vidéo in French) targets any branch or subsidiary owned by a company subjected to corporate tax that creates video games and meets some criteria: the company must in particular acquire an agreement from the Centre National du Cinéma.
How much can a company get a from this tax incentive in France?
The video-game tax credit – base of calcultation
In practice, any essential costs required to produce the video game are eligible for this tax credit: personnel costs affected to the creation of the game, copyright, subcontracting (capped at 2M€, materiel depreciation assigned to the creation of the aforementioned games, etc.).
You must substract from expenses all innovation subsidies related to this tax credit.
Eligible expenses are capped at 15M€ per calendar year. It enables a 30% tax reduction. In other words, the tax credit is capped at 4.5 M€ per calendar year.
.. and the refund
This tax incentive in France reduces income taxes owed by the company. The excess of this tax incentive in France over corporate tax is immediately refunded in cash.
Possible accumulation with other tax incentive in France?
Any company that profits from this tax credit can also benefit from the CICE, Research Tax Credit (CIR: Crédit d’Impôt Recherche in French) or the Young Innovative Company status (JEI: Jeune entreprise Innovante in French) as well.
The video-game tax credit in a few words
These details of information can be summarized as follows:
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