Digital Agenda Initiative proposes tax credits on production and national distribution

Berlusconi party pushes Italy games tax breaks

Former Italian Prime Minister Silvio Berlusconi’s political party The People of Freedom has proposed a new games tax relief scheme for Italy.

As part of its Digital Agenda Initiative, the party suggests Italian games development companies receive a tax credit and deduction of reinvested earnings.

The proposals include a 15 per cent tax credit of the total cost of production of games made in Italy, up to a maximum of €2.5million.

A tax credit equal to ten per cent of the overall expenses incurred by national distribution in Italy, and developed in the native language, is also covered for up to €1.5 million, as well as other income tax benefits.

The proposals in Italy come shortly after the UK coalition government announced its intention in the Budget to establish a nationwide games tax break policy.

Both tax relief schemes however must overcome current EU legislation effectively banning state aid.

Whilst games tax breaks were recognised as an exception from 2007 and widely used in France, this expired at the beginning of the year and has yet to be renewed by the EU after reportedly difficult talks to revive the initiative.

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