France Reforms Tax Breaks for the Video Games Industry

According to a brief report in Tax News the French government is pushing to reform the country's video games tax credit (known as the CIJV). French Culture Minister Aurélie Filippetti, Budget Minister Bernard Cazeneuve, and Innovation Minister Fleur Pellerin, have all embraced the French National Assembly's adoption of plans to reform the country's video games tax credit (CIJV).

The Ministers applauded the governing body's decision to pass two key amendments pertaining to the reform. First they extended the period in which "eligible expenses" related to video game development can be taken into account for the tax break from the current 36 months to 72 months. Article 14 of the Government's year-end supplementary finance bill (PLFR 2013) also abolishes the stipulation that development costs must exceed 10 million euros ($3.7 million USD) in order to qualify for the extension.

The National Assembly also backed amendments to the PLFR 2013 that lower the minimum budget requirement for the tax credit from 150,000 euros to 100,000 euros. Deputies also gave the green light to plans to include games with a rating of (PEGI 18+), which were previously excluded from tax relief scheme.

French Ministers says that these reforms will keep French development firms from leaving the country to find decent tax breaks in other countries such as Canada and the United States. In the last five years, France has lost around 50 percent of its game development industry jobs.

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