Paschal Donohoe (Dublin Central, Fine Gael)
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I move amendment No. 53:

In page 78, line 20, to delete “an EEA state” and substitute “a European Economic Area (EEA) state”.

Section 33 introduces a new relief for the digital gaming sector. The aim of the measure is to provide an incentive to digital games developers to produce digital games that contribute to the promotion and expression of Irish and European culture. Subsequent to the publication of the Finance Bill, the requirement for a number of technical amendments to the legislation, as published, was identified to ensure the provisions operate as intended. I, therefore, commend the amendments to the committee. What I will do, in speaking to these amendments, is give a broader perspective on the Bill and the section itself.

The relief will take the form of a corporation tax credit, the beneficiaries of which will be digital games development companies. The rate of the credit will be 32%, available on eligible expenditure of up to €25 million per game. The credit will be available on expenditure incurred in the design, production and testing stages of the development of qualifying digital games, provided certain conditions are met.

In order to be eligible, the qualifying expenditure must be not less than €100,000. Games produced solely or mainly for the purposes of gambling or advertising will not be eligible for the relief.

The relief will be a cultural one for state aid purposes and, therefore, a cultural test will also apply. In order to claim the credit, a company must first apply for cultural certification as a qualifying digital game to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media. An interim cultural certificate may be applied for at any point before or during the development of the digital game and will only allow relief to be claimed annually in respect of qualifying expenditure. On completion of a digital game, the company must apply for a final cultural certification and claim any balance of the credit due. As part of the certification process, a digital games development company will be required to sign an undertaking of quality employment. As already stated, the relief will constitute a state aid and, accordingly, must be notified to and approved by the European Commission prior to commencement. Accordingly, it is being introduced subject to a commencement order. The scheme will run until 31 December 2025.