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Brussels agrees to reforms of French games tax breaks

Smaller projects now eligible for rebates in territory

A broadening of the criteria of eligibility for games-related tax breaks in France has been agreed by Brussels, meaning the changes should soon be passing into French law.

Agreed to in French parliament this time last year, the changes will allow more companies to see the benefits of the easement of taxation by relaxing the laws covering application in three ways. Firstly, games aimed at an adult market will now be eligible, excluding those games featuring acts of extreme violence; secondly, the cost of the project can now be as low as €100,000 and thirdly, that cost can be spread over a wider range of activities.

"The green light from Brussels concerning the new terms of the Video Game Tax Credit is excellent news for the entire sector," said president of the Syndicat National Du Jeu Video and co-founder of Quantic Dream, Guillaume de Fondaumière. "It will allow a much larger number of studios to benefit from a reduction in their production costs and, in particular, studios which create very popular games for the Web or mobile platforms. This measure will now allow companies already based in France to maintain many jobs. It may also convince leading international stakeholders to set up or relocate to our country rather than elsewhere in the world, something which would strengthen the entire French video game ecosystem."

The SNJV now believes it has the right legislature in place to make France one of the most attractive places to develop games in the world.