€15,000 tax credit for development of digital game

Tax credit for development of digital game launched to support further growth and employment in the digital industry.

Another initiative seeking to help in the creation and growth of a market for small digital games, this time directed at the businesses and industries that commission such games as a marketing tool to promote their products or services online has been launched today by Minister of Finance, the Economy and Investment Tonio Fenech.

This launch was made on the margins of a presentation ceremony held at the Institute of Computer Education which celebrated the innovative skills and talent of students in the development of digital media productions.

 This scheme consists of a one-time tax credit equivalent to 100% of the total subcontracted costs incurred for the development of an eligible digital game, up to a maximum of €15,000.

It is open to eligible companies, according to Incentive Guidelines which are were published today. Game developers would be indirect beneficiaries of the scheme given that it is likely to increase demand for such games.

Minister Tonio Fenech expressed confidence "that this Scheme will serve to create more activity in the digital gaming industry. While this Incentive is primarily aimed at other businesses who choose to innovate by integrating social and digital media into the different aspects of their businesses, indirectly it will also support our digital gaming community".

He noted that this scheme builds on a number of incentives launched over the past months to support this growing industry. These included the 15% tax capping extension to digital gaming directors and games designers' salaries, which further incentivises the transfer of knowledge and capital, the establishment of a 150,000 euro Digital Gaming Fund to support the commercialisation of digital games and the setting up of new Scholarship Programme, known as STAR, specifically focused on the digital gaming and financial services.

Minister Fenech congratulated the students for their digital presentations, describing their work as fine examples and an attestation of the significant potential that Malta possesses in terms of the flourishing digital gaming industry.

Tonio Fenech reiterated Government's commitment to attract foreign direct investment in this sector and secondly to identify ways of stimulating, supporting and expanding the local games industry in Malta.

The incentive launched today is being administered by Malta Enterprise.