Aware of the importance of video games as a popular leisure activity in France, as shown by a recent study by the leisure software publishers' association (in French, the Syndicat des Editeurs de Logiciels de Loisirs, and their article entitled ‘The French and Video Games’), France was quick to take up the issue of financing the sector in order to place its industry players in the spotlight. Under the joint authority of the ministries for industry and culture, the sector benefits from major tax and financial support schemes that are crucial to its development.
Public financing schemes include several tax schemes designed to support operations carried out in France or in the European Union. These include:
- the video game tax credit for the development of video games, the granting of which is subject to dual approval, representing 30% of eligible expenditure in respect of a financial year, capped at €6 million per company and per 12-month financial year;
- the film tax credit and the audiovisual tax credit applicable (at a rate depending on the situation) to eligible film or audiovisual adaptation expenses;
- the research tax credit representing 30% of eligible R&D expenditure up to €100m (the rate is limited to 5% above that threshold).
These tax credits are deducted from the corporate tax due, and any excess is refundable.
Under certain conditions, new SMEs in the sector can also benefit from the tax and social security advantages attached to the status of young innovative company or young growth company.
Many of these mechanisms are designed for specific periods of time and are subject to frequent changes, requiring specific monitoring and regular adaptation.
Our firm is at your service to help you:
- determining whether you are eligible for the above-mentioned tax credits;
- determining the amount of the tax credits concerned;
- preparing the steps you need to take to obtain the tax credits, and preparing the relevant tax returns;
- any potential subsequent discussions with the tax authorities.
