Tiga hopeful EU will lift tax break ban

Tiga hopeful EU will lift tax break ban

By Rob Crossley

February 8th 2012 at 2:58PM

'No sign that Europe will remain hostile'

There remains a good chance that the Europe Commission will amend regulations that presently block game tax breaks across Europe, developer association Tiga has told Develop.

Tiga, which has campaigned for games tax breaks for several years, says there is “still a likelihood” that the European Commission will allow games studios to benefit from the state aid.

Up until December 2007, tax breaks were banned under EU regulations due to concerns they would distort the commercial balance between EU Member States.

But game production was made exempt from this ban for four years, until December 31st 2011.

Now the European Commission is deliberating whether to extend the exemption, but Develop understands that the measure is not guaranteed and there is resistance to the plans.

If Brussels decides against extending its exemption, tax break policies would remain banned across all EU countries including France and the United Kingdom.

Tiga, which has banked much of its operations on UK tax breaks, believes the European Commission is likely to lift the ban.

“French games tax breaks have proven to be successful,” the group’s CEO Richard Wilson (pictured) told Develop.

“There is no sign that Europe will remain hostile to tax breaks,” he said, but added that it was “too early” to predict whether the ban would be lifted.