Why Some Publishers Might Fear UK Games Tax Relief

July 2, 2010 -

At least a few UK publishers may be concerned that any tax incentives invoked for developers could have a trickle down effect and cause problems in other areas of their business.

Develop details the feared repercussions, one of which centers around the “cultural” elements of tax breaks, which could lead to games being classified as audiovisual products—instead of software—possibly leading to a rise in taxes placed on the goods and higher prices for the end user.

The article calls such concerns “routinely rubbished,” but says that, despite that, such worries remain “prevalent across certain industry groups, bodies and companies.”

The apprehension goes back to a 2008 tax relief proposed in France, which was openly opposed by the Interactive Software Federation of Europe (ISFE) over fears of a reclassification of games as AV products.

As Develop further explained:

Sources explain that games are part software, part cultural product – yet ultimately undefined. A cultural tax relief measure could pin games to a category that some publishers link to more taxation, and import and export tax risks.

TIGA had previously stated that games might need to pass a cultural test in order to qualify for tax relief, which would involve “scoring against criteria of European heritage and game locations, languages, innovation, narrative, and location of development and key development staff.”


 
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E. Zachary KnightI don't see why it would be that difficult to maintain one. Especially for a news outlet with multiple people on the payroll.09/23/2014 - 9:37am
Matthew Wilsonthey can, but will they? more inportantly will the traditional sites be willing to do the extra work to maintain the list?09/23/2014 - 9:02am
E. Zachary KnightSo how will it reduce the power of the traditional games press? They can create curated stores too.09/23/2014 - 8:39am
Matthew WilsonI think its a good thing, but it does mean traditional games press will have less power than ever before. To be fair most of the gaming press were never big on pc gaming anyways.09/23/2014 - 8:33am
E. Zachary KnightMatthew, is that a bad or good thing?09/23/2014 - 7:43am
MechaTama31When you say "youtuber", I picture some sort of customizable potato...09/22/2014 - 10:48pm
Matthew Wilsonthis change will only give youtubers more power.09/22/2014 - 9:54pm
prh99Steam has added a curator system. You can follow your favorites and see their recommendations http://store.steampowered.com/curators/09/22/2014 - 9:07pm
MaskedPixelantePlus there's the whole "we don't use accounts" thing that means if you lose your 3DS and have to get a new one, you have to deal with Nintendo customer service to get your downloads back instead of, you know, logging in and downloading them.09/22/2014 - 8:39pm
MonteIndeed. Their wallet system, the lack of sales, applying tax, the lack of price cuts, the eshop is pretty terrible. Only use it for indie games.09/22/2014 - 8:29pm
Andrew EisenThat's the one I'm eyeballing. Really dug the demo. Didn't care as much for EOIV though.09/22/2014 - 8:19pm
MaskedPixelanteOoh, an Atlus sale, it must be a day that ends in "y". I'd much rather get physical 3DS games because of Nintendo's outdated digital distribution policies, but EOU is near impossible to find anywhere nowadays... conflicted.09/22/2014 - 7:48pm
Andrew EisenOooh, Atlus sale in the 3DS eShop. I might have to bust open my piggy bank. http://www.siliconera.com/2014/09/22/shin-megami-tensei-iv-atlus-games-sale/09/22/2014 - 7:21pm
Matthew Wilsonhttp://www.pcgamer.com/2014/09/23/steam-update/ steam finally adds content Curation. I like that the user can pick which peoples recommendations they want to see.09/22/2014 - 7:16pm
MaskedPixelanteNintendo put three dual-gendered characters in Smash Bros 4.09/22/2014 - 7:13pm
Andrew EisenWhat did Nintendo do thrice in one game?09/22/2014 - 6:48pm
MaskedPixelanteYou know it's a bogus defense when Nintendo of all companies does it THREE TIMES in one game.09/22/2014 - 6:29pm
E. Zachary KnightIt is stupid that they went with the "It would be too much work to add a woman assassin" defense rather than just being honest and admiting they didn't think about it until it was brought up.09/22/2014 - 6:06pm
E. Zachary KnightYeah, this is a different game and it is not out of the ordinary for them. THey did the same for the pirate one.09/22/2014 - 6:05pm
MaskedPixelanteTurns out it's less "impossible", more "part of the season pass, but only in an exclusive game that's separate from ACU proper".09/22/2014 - 6:01pm
 

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