European Commission approves Belgian tax shelter for video games
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The European Commission has given the green light for a tax shelter for Belgium’s gaming industry, the Commission said in a statement.
Seven years ago, the European Commission had already given the green light for a tax shelter for the film industry.
The tax shelter, which grants tax benefits to companies in Belgium that invest in the production of audiovisual works, has given that industry a major boost. The system also exists for the performing arts.
Belgium decided years ago to develop a tax shelter for the game industry, but that expansion turned out to be anything but obvious: since it concerns a form of state aid, the European Commission has to give its blessing. However, the Commission launched an in-depth investigation last spring since it doubted whether the favorable game regime was in line with European rules on state aid.
The European Commission has now finally given the green light, because Belgium has dropped the condition that the investments must be realized on Belgian soil. All expenditure in the European Economic Community for goods and services related to video games is now eligible for the tax shelter.
In addition, producers need to be aware of the “cultural character” of the games, according to the Commission.
The tax shelter regime runs until 31 December 31 and involves 36 million euros in state aid. The video game tax shelter will come into effect on January 1 next year.
© BELGA PHOTO - Two people with video games on the computer, in the tenth edition of DreamHack, in the Forum center Feria Valencia, on July 1, 2022, in Valencia (Spain).