Paul Murphy (Dublin South West, RISE)
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84. To ask the Minister for Finance if he will ensure that those who avail of the new digital gaming relief are subject to ensuring quality employment and training; and if he will make a statement on the matter. [54403/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As I announced during my Budget speech, I am introducing a new tax credit for the digital gaming sector. Digital gaming is a sector that has seen exponential global growth in the past decade, however this growth has not been reflected in industry growth here in Ireland. Ireland has the potential to utilise the synergies with our established film and animation sectors, to support employment in creative and digital arts in the State.

It is important to note that European Commission State aid approval will be required prior to the introduction of the tax credit. Therefore the Finance Bill 2021 legislation is being introduced subject to a commencement order, pending completion of the State aid approval process.

As the relief is a cultural one, in order to avail of the credit, a digital game development company must first apply to the Minster for Tourism, Culture, Arts, Gaeltacht, Sports and Media for a cultural certificate. As part of this certification process, a digital game development company will be required to complete an “Undertaking in respect of quality employment” in order to qualify for the relief. This undertaking is similar to the requirements in place under the Section 481 Film Tax Credit. It commits applicants to compliance with all relevant employment legislation. It is crucial that employee rights are upheld in all industries and the inclusion of this provision reinforces the importance of adhering to employment legislation in the digital gaming sector.

Should a digital game development company fail to adhere to a condition or obligation specified in the undertaking, the conditions of certification will not have been met, which means that any credit claimed pursuant to an interim certificate may be subject to recoupment by Revenue and an application for a final certificate may be refused.

It is important to note that the monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise, Trade and Employment, through the Workplace Relations Commission. While the importance of employment rights will be reflected in the tax credit for digital game, the WRC remains the appropriate avenue to address non-compliance with employment rights legislation.