TAX CREDITS FOR GAME DEVELOPMENT COMMISSIONS

Tax Credits For Game Development Commission Boo Games
FROM: Malta
KEYWORDS: tax credit, enterprise development, fiscal-incentives, start up, games as educational or promotional
DURATION: October 2012 - running
INDICATIVE COST:
FUNDING: National
FOCUS: focus on creative start-ups, including digital game sector
TAX CREDIT MALTA is a commission for fiscal incentives for businesses and institutions to develop small games as educational or promotional tools for their ventures
In fact, one way of helping start-ups survive without issuing direct funding through grants is the creation of schemes that encourage businesses and institutions to develop this kind of tools for their ventures. The incentive would be a tax credit equal to the amount of the game’s development and capped at €15,000.
To incentivise further private investment in target areas the strategy proposed tax credits for game development commissions, together with tax deduction for private donations to the arts and rebates to preserve urban property.
The aim of this scheme is therefore to generate a demand for the services of game companies from the local market in order to aid new game studios in covering their expenses in supplement to game development projects they might undertake.
The enterprise can decide the use and scope of the game application, but this game cannot be re-sold to a third party. These game applications are thus intended as a promotional, educational or functional tool utilised by the applicant in relation to their business.
It is important that projects are awarded on the basis of a clear game-design document with preference given to companies that employ individuals with game development experience. This is in order to avoid projects being absorbed by existing design agencies and producing trivially interactive applications that are not actually games but could pass for such to the untrained eye. This means that some vetting from a knowledgeable source needs to be undertaken. In awarding such projects, start-ups and recently formed game companies should be favored
SPECIFIC GOALS
• generate a demand for the game companies services from the local market
• help the new game studios in covering their expenses for game development projects
• to incentive further private investment in target areas
MAIN NEEDS MET by the GP
FINANCE, FUNDING
• indirect financial support through tax credit
BUSINESS ENTREPRENEURIAL SUPPORT
• supporting the identification of business ideas in Knowledge-based activities
TRANSFERABILITY AND SUCCESS FACTORS
QUOTATION
“Malta’s Creative Economy is driven by 3600 enterprises, employs 7500 creatives, grows at an average 9% per annum, generates €47.5 million from tourism, contributes to 4% of GDP, is similar in size to the construction industry, and slightly less than the financial intermediation services. Since 2010 the cultural and creative industries received €15.4 million additional Government investment reaching a total investment of €26.5 million in 2011.” http://creativemalta.gov.mt
FURTHER DETAILS
OWNER OF THE PRACTICE: Malta Digital Games Fund
REFERENCE PERSON: Katina Mladenova katina.mladenova@ftz.org.mt
WEBSITE: http://creativemalta.gov.mt/route-to-market/new-fiscal-incentives
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