Belgium's tax incentive for the games industry was officially approved by the European Commision today.
Already in place for the AV industry since 2003 and performing arts since 2017, the Belgian Tax Shelter will now include game productions as well.
The idea is to encourage games development in Belgium, with the tax incentive open to Belgian productions, and co-productions meeting the qualifying criteria.
The Tax Shelter will finance up to 33,7% gross (27.2 % net) of the "eligible production budget of the total qualifying expenses in the EEA," the announcement clarified.
Investors can also receive Tax Shelter certificates based on the amount of qualifying investment costs that the game's production will spend in Europe, as well as the direct and indirect amount of Belgian-eligible expenses.
"Through the system, the investor pre-finances the production and/or post-production costs in return for tax benefits and a possible fixed return on investment," the announcement explained.
Jean Greban, coordinator of regional Wallonia Gaming Association WALGA. commented: "All three parties benefit from this arrangement: the producer is offered a very attractive way to finance projects; the investor obtains tax exemption through a virtually risk-free investment; and the Belgian state gains from increased economic activity and spend."
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