Press Release – Paris 15 December 2014
Green light from Brussels for the reform of the French Video Game Tax Credit: The French Video Games Trade Association (SNJV) welcomes the imminent entry into force of the new provisions.
A key measure promoted by the SNJV since 2005 and adopted for the first time in Europe in 2008, the Video Game Tax Credit (CIJV) aims to reduce the deficit in competitiveness of video game production companies based in France against countries such as Canada, the United States or Australia, which offer very generous tax incentives for video game creation.
Too restrictive in some respects, a reform of the criteria for obtaining the CIJV has been requested by professionals for several years. These changes have now been approved in Brussels, paving the way for the setting up of a reformed CIJV in France.
A strategic reform for France, awaited by companies for several years
It is in a context of a strongly globalized video games market that a reform request was submitted by the SNJV and the SELL in 2012. The reform has been discussed with the Inter-ministerial Working Group on Video Games presided over jointly by the Minister of Culture and the Secretary of State for the Digital Sector. This dialogue involved changes to the eligibility criteria for productions in order to (1) make games for adults eligible (subject to the absence of scenes of extreme violence), (2) lower the eligibility limit for productions to €100,000 and (3) widen the bracket of spending taken into account for calculating the tax credit.
The reform presented and voted in Parliament in December 2013 had to be submitted to the European Commission and obtain approval from Brussels before being put into force in France. The green light from the Commission announces the now imminent entry into force of these reforms.
A tax credit among one the most generous in the world, which will offer France great renewed attractiveness
“The green light from Brussels concerning the new terms of the Video Game Tax Credit is excellent news for the entire sector. 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”, explains Guillaume de Fondaumière, President of the SNJV.
France now has a more dynamic Video Game Tax Credit considered to be among the most attractive in the world. The French Video Games Trade Association wishes to thank Mrs Fleur Pellerin, the Minister of Culture and Communication, Mrs Axelle Lemaire, the Secretary of State for the Digital Sector, the National Centre for Cinema and the Moving Image) and the Directorate-General for Enterprise for the quality of the discussions which have led to this result.
About the SNJV
The French Video Games Trade Association (SNJV) was created in 2008. It brings together over 200 companies and professionals that produce and publish video games and multimedia game programs, as well as organizations dedicated to develop the video game industry in France. The SNJV works to promote and develop the French video game industry. The SNJV collaborates closely with the various video game production zones in France, via the involvement of regional organizations and local economic development hubs. The SNJV is a founding member of the EGDF (European Games Developer Federation). The EGDF represents 600 video game production companies based in Europe.
Press contact : Julien Villedieu – Managing Director / 0970 460 611 / +33 6 16 12 05 09