Joystiq http://www.joystiq.com Joystiq http://www.blogsmithmedia.com/http://www.joystiq.com/media/feedlogo.gif Joystiq http://www.joystiq.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[VP Joe Biden: 'No legal reason' the US can't tax violent media]]>http://www.joystiq.com/2013/05/14/vp-joe-biden-no-legal-reason-the-us-cant-tax-violent-media/http://www.joystiq.com/2013/05/14/vp-joe-biden-no-legal-reason-the-us-cant-tax-violent-media/http://www.joystiq.com/2013/05/14/vp-joe-biden-no-legal-reason-the-us-cant-tax-violent-media/#commentsBiden says there's no legal reason the US can't tax violent media Vice President Joe Biden has been on the front lines of the gun violence debate since the mass shooting in Newtown, Connecticut, in December. In January, Biden led a task force assigned by President Barack Obama to examine possible means of curtailing gun violence in the US, and his findings prompted Obama to call for scientific research into the effects of violent media on young minds.

Earlier in May, Biden met behind closed doors with 20 representatives from faith-based organizations to discuss gun control and immigration, and he briefly addressed video games, Politico reports. Franklin Graham, son of evangelist Billy Graham, proposed to Biden that "media and entertainment that portray violence should be subject to a special tax, with the proceeds going to help victims and their families," according to Rabbi Julie Schonfeld.

Biden replied that there was "no restriction on the ability to do that; there's no legal reason why they couldn't" place a tax on violent media, Sister Marjorie Clark told Politico. Biden again emphasized the need for more research into the subject, Clark added: "He said they really need a good scientific study, which they've done on things like smoking."

During his initial fact-finding meetings in January, Biden expressed particular interest in speaking with inter-faith organizations, though he met with a wide swathe of communities, including entertainment companies, advocacy groups, youth organizations, the mental health community and the NRA.

JoystiqVP Joe Biden: 'No legal reason' the US can't tax violent media originally appeared on Joystiq on Tue, 14 May 2013 16:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gun-violencejoe-bidenpoliticstaxtaxesunited-statesUSATue, 14 May 2013 16:45:00 EST<![CDATA[UK Interactive Entertainment CEO defends games as culture before EU tax investigation]]>http://www.joystiq.com/2013/04/23/uk-interactive-entertainment-ceo-defends-games-as-culture-before/http://www.joystiq.com/2013/04/23/uk-interactive-entertainment-ceo-defends-games-as-culture-before/http://www.joystiq.com/2013/04/23/uk-interactive-entertainment-ceo-defends-games-as-culture-before/#comments UKIE CEO Jo Twist defends games as culture in EU investigationLast week the European Commission announced it would kick off an "in-depth investigation" into proposed UK tax relief for video game developers, and UK Interactive Entertainment's Jo Twist wasn't too pleased by the news. This week the non-profit's CEO calls on the UK games industry to send a clear message to the European Commission, that games are culturally and economically relevant.

"[Games] generate culture, and are purveyors of culture in their own right," Twist writes. "They generate emotion and opinions, and the way they do that is through story, through experiences, and a huge diversity of innovative mechanics ... We have to show why there are not as many culturally British games being made as there could be and how the credit would help address this."

The UK games tax relief plan calls on developers to pass a "cultural test" before receiving financial aid, incentivizing games starring British lead characters, in British locations or made by a local British team. The EU Commission worries the tax relief could negatively impact competition.

"The market for developing video games is dynamic and commercially promising," said EU Commission VP of Competition Policy Joaquin Almunia. "It is not clear whether the taxpayer should be subsidizing this activity. Such subsidies could even distort competition."

Twist notes that the EU Commission investigated both the UK film tax credit and French video game tax system, both of which were eventually approved, setting a historical precedent to accept the UK's proposal. Further information on UKIE's defense can be found on its Facebook page.

JoystiqUK Interactive Entertainment CEO defends games as culture before EU tax investigation originally appeared on Joystiq on Tue, 23 Apr 2013 02:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>eu-commissioneuropejo-twisttaxtax-breakstax-relieftaxesukukieTue, 23 Apr 2013 02:00:00 EST<![CDATA[UK games industry showing slight signs of recovery]]>http://www.joystiq.com/2013/03/20/uk-games-industry-showing-slight-signs-of-recovery/http://www.joystiq.com/2013/03/20/uk-games-industry-showing-slight-signs-of-recovery/http://www.joystiq.com/2013/03/20/uk-games-industry-showing-slight-signs-of-recovery/#comments UK turnaroundUK trade association TIGA published a report this week, claiming that employment in UK games development grew by four percent in 2012.

Looking deeper at the numbers shows us UK studios aren't making the huge games they used to, however, and are evolving into smaller studios supporting more mobile and tablet development.

According to TIGA, from 2011 to 2012, creative staff across the UK grew from 8,888 to 9,224, which is where the modest four percent increase cited earlier comes from. The number of studios in the UK increased from 329 to 448 - that's 119 new studios and only 336 new jobs. The UK has shifted to smaller studios after years of layoffs and closures.

"Mobile and internet based gaming provide opportunities for growth; we have access to a highly skilled and creative workforce; and TIGA's Games Tax Relief will give a further boost to employment and investment from April 2013," said TIGA Chairman and Rebellion CEO Jason Kingsley.

TIGA estimates the sector's contribution to UK gross domestic product increased from £912 million to £947 million in 2012. The UK finally passed tax relief for the ailing sector last year, having proven it passed the cultural test.


[Image: Christos G. via Shutterstock]

Continue reading UK games industry showing slight signs of recovery

JoystiqUK games industry showing slight signs of recovery originally appeared on Joystiq on Wed, 20 Mar 2013 02:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>britaintaxtax-relieftigaukukieWed, 20 Mar 2013 02:55:00 EST<![CDATA[UK video game tax relief hinges on passing this 'cultural test']]>http://www.joystiq.com/2012/12/11/uk-video-game-tax-relief-hinges-on-passing-this-cultural-test/http://www.joystiq.com/2012/12/11/uk-video-game-tax-relief-hinges-on-passing-this-cultural-test/http://www.joystiq.com/2012/12/11/uk-video-game-tax-relief-hinges-on-passing-this-cultural-test/#comments UK video game tax relief hinges on passing this 'cultural test'The UK government outlined a "cultural test" that video games developed in the region must meet for the studio to qualify for tax relief, as part of the industry overhaul begun earlier this year. A game must earn 16 points to receive the tax break, with points awarded for such criteria as being "set in the United Kingdom or another EEA state," which includes all countries of the European Union, plus Iceland, Liechtenstein and Norway. The studio gets four points if the game stars two of three lead characters "from the United Kingdom or another EEA state or from an undetermined location," or it depicts "a British story."

If at least half of the game's development is completed in the UK, studios can earn three points, while a "qualifying" project leader, script writer, composer, artist, programmer, designer and department head earn one point each. If at least half of the entire team qualifies as a legitimate UK operation, the studio gets another point. The tax code is like a game in itself.

For example, if a studio in the UK (3 points) with all local staff (8 points) creates a game about a time-traveling doctor in a bowtie (4 points) as he journeys around Liverpool (4 points), Hufflepuff wins the House Cup. See? Easy.

Peruse the entire cultural test below.

Continue reading UK video game tax relief hinges on passing this 'cultural test'

JoystiqUK video game tax relief hinges on passing this 'cultural test' originally appeared on Joystiq on Tue, 11 Dec 2012 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>britaincultural-testeuropemicrosoftmobilenintendopcplaystationps3taxtax-breakstax-relieftaxesTigaukukiewii-uxboxTue, 11 Dec 2012 16:30:00 EST<![CDATA[UKIE wants 30% games industry tax break, UK begins tax plan scrutiny]]>http://www.joystiq.com/2012/09/11/ukie-wants-30-games-industry-tax-break-uk-begins-tax-plan-scru/http://www.joystiq.com/2012/09/11/ukie-wants-30-games-industry-tax-break-uk-begins-tax-plan-scru/http://www.joystiq.com/2012/09/11/ukie-wants-30-games-industry-tax-break-uk-begins-tax-plan-scru/#comments UKIE wants 30% games industry tax break, UK begins tax plan scrutinyUKIE, a trade group for the entertainment industry in the UK, joined UK gaming trade association TIGA in calling for a tax relief flat rate of 30 percent across the industry, in the hopes of stimulating the UK's game development business. In March, UK chancellor George Osborne pledged to "turn Britain into Europe's technology centre, starting with digital content," by extending the country's film tax breaks to the TV, animation and gaming industries.

Yesterday was the deadline for suggestions to the UK government on how the gaming tax breaks should be handled. TIGA previously suggested the 30 percent flat rate, or an alternative tiered rebate giving 25 percent relief to projects costing £250,000 ($400,000) or more.

After consulting with more than 200 UK companies, UKIE proposed relief should extend to the entire industry, covering indies, large studios and new companies established by parties overseas -- all with a 30 percent relief rate, regardless of budget. UKIE included relief for DLC and post-launch support in its proposal.

The tax relief is poised to begin in April, pending parliamentary approval and a round of summaries, scrutiny by tax professionals and consultation. Edge has a round-up of the whole process here.

JoystiqUKIE wants 30% games industry tax break, UK begins tax plan scrutiny originally appeared on Joystiq on Tue, 11 Sep 2012 21:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3dsgovernmentlawmacmicrosoftmobilenintendopcplaystationplaystation-vitaps3taxtax-breaktax-relieftaxesTigaukukievitawii-uxboxTue, 11 Sep 2012 21:30:00 EST<![CDATA[TIGA outlines UK's Games Tax Relief, calls for 30% flat rate]]>http://www.joystiq.com/2012/09/03/tiga-outlines-uks-games-tax-relief-calls-for-30-flat-rate/http://www.joystiq.com/2012/09/03/tiga-outlines-uks-games-tax-relief-calls-for-30-flat-rate/http://www.joystiq.com/2012/09/03/tiga-outlines-uks-games-tax-relief-calls-for-30-flat-rate/#comments TIGA outlines UK's Games Tax Relief, calls for 30% flat rateTIGA, the UK games industry's trade association, outlined its recommendations for Games Tax Relief to the British government today. Following the government's backing earlier this year for tax relief support (as provided in Canada, France, and the US) TIGA called for a 30% flat rate to save the nation's struggling games industry.

TIGA also suggested an alternative of tiered rebate, with 30% for projects costing less than £250,000 (just under $400,000), and 25% for those costing more. TIGA's proposal includes recommendations of post-release costs being covered, eligibility for educational games, and support for free-to-play games and those based on in-game advertising.

TIGA believes the proposed model can bring more than 4,500 jobs to the UK games industry over the next five years, and increase its returns by nearly $0.5 billion.

The news follows the recent demise of Sony Liverpool, one of the UK's longest serving game studios. The government will now consider TIGA's proposal, with the aim of introducing GTR from April 2013, subject to European Commission approval.

Continue reading TIGA outlines UK's Games Tax Relief, calls for 30% flat rate

JoystiqTIGA outlines UK's Games Tax Relief, calls for 30% flat rate originally appeared on Joystiq on Mon, 03 Sep 2012 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>governmenttaxtigaukMon, 03 Sep 2012 15:00:00 EST<![CDATA[UK finally implementing game tax relief]]>http://www.joystiq.com/2012/03/21/uk-finally-implementing-game-tax-relief/http://www.joystiq.com/2012/03/21/uk-finally-implementing-game-tax-relief/http://www.joystiq.com/2012/03/21/uk-finally-implementing-game-tax-relief/#comments The UK government announced today it would finally provide tax relief for game developers, which comes as welcome news to the region's struggling scene. The relief will take the form of £15 million in 2013-14, with £35 million in 2014-15.

"Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector's contribution to UK gross domestic product by £283 million; generate £172 million in new and protected tax receipts to Her Majesty's Treasury, and could cost just £96 million over five years," TIGA CEO Dr. Richard Wilson stated today.

With some luck, the relief will help slow the "brain drain" occurring in the UK games industry following numerous studio closures.

Wilson also said, "Tax breaks for games production will ensure that the UK remains at the forefront of video game development."

That's a nice dream, but current tax break champion Canada and many others are ahead of the UK by a mile ... er, kilometer.

[Pixelbliss via Shutterstock]

Continue reading UK finally implementing game tax relief

JoystiqUK finally implementing game tax relief originally appeared on Joystiq on Wed, 21 Mar 2012 23:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>britaintaxtax-relieftaxestigaukWed, 21 Mar 2012 23:59:00 EST<![CDATA[Oklahoma's tax on violent games killed]]>http://www.joystiq.com/2012/02/24/oklahomas-tax-on-violent-games-killed/http://www.joystiq.com/2012/02/24/oklahomas-tax-on-violent-games-killed/http://www.joystiq.com/2012/02/24/oklahomas-tax-on-violent-games-killed/#comments The Oklahoma bill that would have placed a 1 percent tax on "violent" video games was viciously murdered by the state's House Revenue and Tax Subcommittee on February 20. The bill, submitted by Representative Will Fourkiller, would have placed the tax on Teen, Mature and Adults Only-rated titles. Rep. Fourkiller tried to compromise with the "Oklahoma Task Force on Video Games' Relationship to Obesity and Aggression"... it also failed.

Taxpayers in Oklahoma should probably burst out into song and thank their lucky stars. Similar legislation has been defeated in other states, with the ESA recouping costs on lawyers fees. California has paid out nearly $2 million for its unconstitutional attempts to pass laws on the matter.

JoystiqOklahoma's tax on violent games killed originally appeared on Joystiq on Fri, 24 Feb 2012 13:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>billoklahomataxviolent-video-gamesWilliam-FourkillerFri, 24 Feb 2012 13:15:00 EST<![CDATA[Mass. Lt. Gov. wants game tax credits tied to job creation]]>http://www.joystiq.com/2012/02/16/mass-lt-gov-wants-game-tax-credits-tied-to-job-creation/http://www.joystiq.com/2012/02/16/mass-lt-gov-wants-game-tax-credits-tied-to-job-creation/http://www.joystiq.com/2012/02/16/mass-lt-gov-wants-game-tax-credits-tied-to-job-creation/#comments Massachusetts is the fifth largest state for game industry employment in spite of better developer incentives in other states. Nearly 1,300 industry jobs exist in the Commonwealth, but a recent profile of Irrational Games by The Improper Bostonian covers how the state's grip on gaming could slip if it doesn't step up studio stimulus.

A bill for game developer incentives has been floating around the Mass. legislature for about a year, but hasn't gained traction with lawmakers. The state currently provides heavy cuts for the movie industry, despite the game industry pumping more cash into local economies.

"It's ironic," Irrational Games' director of product development Tim Gerritsen said. "If you look at it, where do you want to put your money? We've got 120 permanent employees. They spend all their money here. They pay their rent here. They pay their taxes here. Do you want Dane Cook? He's here for two weeks doing a film, and he's gone."

"When you talk about tax incentives, that's less revenue that you're receiving, so I think any kind of incentive would have to be linked to hard commitments from the private sector," said Lieutenant Governor Timothy Murray, who is coming off a win by keeping PAX East in Boston until 2023. The convention will also make donations totaling $325,000 over the next 11 years to MassDiGI.

The state did lose a major studio last year when former Red Sox player Curt Schilling's 38 Studios moved to neighboring Rhode Island for a $75 million loan. The state isn't likely to lose established studios like Harmonix, Demiurge and Turbine. The problem comes founding or incubating new studios without concessions.

JoystiqMass. Lt. Gov. wants game tax credits tied to job creation originally appeared on Joystiq on Thu, 16 Feb 2012 22:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>38-Studiosbioshock-infiniteBostonDemiurgeHarmonixIrrationalIrrational-GamesMassachusettsmicrosoftpcplaystationps3TaxTax-incentivesTim-MurrayTurbinexboxThu, 16 Feb 2012 22:30:00 EST<![CDATA[Oklahoma attempts violent-game tax, ESA responds]]>http://www.joystiq.com/2012/02/03/oklahoma-attempts-violent-game-tax-esa-responds/http://www.joystiq.com/2012/02/03/oklahoma-attempts-violent-game-tax-esa-responds/http://www.joystiq.com/2012/02/03/oklahoma-attempts-violent-game-tax-esa-responds/#comments O-K oy vey -- some States just never learn. Oklahoma State Representative William Fourkiller has proposed a 1 percent tax on Teen, Mature and Adults Only-rated games.

Fourkiller says, "Violent video games contribute to some of our societal problems like obesity and bullying, but because they raise a lot of revenue, they can also provide part of the solution." The proposed bill would have half of the money go to a bullying prevention fund and the other to get kids out of the house.

You can imagine the Entertainment Software Association, which just last week got the State of California to agree to reimburse it $950,000 in legal fees (on top of another check back in 2008) for fighting Brown v. EMA up to the Supreme Court, has something to say on this subject.

"We are disappointed that even in the wake of an overwhelming decision in the United States Supreme Court finding proposals such as this to be patently unconstitutional, there are those who still try to attack video game with outdated notions of our industry," the ESA told Joystiq. "Taxing First Amendment protected material based on its content is misguided."

California will have paid the ESA more than $1,327,000 to reimburse legal fees, while other states have also had to pay back the industry's lobbying and political arm for fighting similar bills. Turn back now, Oklahoma. Turn back now while you still can!

JoystiqOklahoma attempts violent-game tax, ESA responds originally appeared on Joystiq on Fri, 03 Feb 2012 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>billoklahomataxviolent-video-gamesWilliam-FourkillerFri, 03 Feb 2012 17:00:00 EST<![CDATA[Ireland planning to double its game industry jobs]]>http://www.joystiq.com/2011/10/12/ireland-planning-to-double-its-game-industry-jobs/http://www.joystiq.com/2011/10/12/ireland-planning-to-double-its-game-industry-jobs/http://www.joystiq.com/2011/10/12/ireland-planning-to-double-its-game-industry-jobs/#comments Ireland is planning to double its game industry employment numbers by 2014, targeting 4,500 jobs from the current estimate of 2,000. The country, which has been dealing with a financial crisis, and acting as a corporate tax haven as the same time, is looking to back sustained growth in digital creative industries.

Develop lays out the six initiatives the country has to grow in the sector. "As a pioneering sector within the wider digital economy, the games sector is dynamic, innovative and exciting," said Richard Bruton, the minister for jobs, enterprise and innovation. "What is apparent is that Ireland already has a number of strengths on which we can build success for the future and that will differentiate its offering internationally."

Ireland is already off to a good start, with the recent opening of BioWare Ireland (pictured), a 200-employee customer service center expected to double in size.

JoystiqIreland planning to double its game industry jobs originally appeared on Joystiq on Wed, 12 Oct 2011 13:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bioware-irelandBusinesseaelectronic-artsIrelandtaxtaxesWed, 12 Oct 2011 13:10:00 EST<![CDATA[UK government may close online shopping tax loophole]]>http://www.joystiq.com/2011/03/24/uk-government-may-close-online-shopping-tax-loophole/http://www.joystiq.com/2011/03/24/uk-government-may-close-online-shopping-tax-loophole/http://www.joystiq.com/2011/03/24/uk-government-may-close-online-shopping-tax-loophole/#comments The gaming significance of the above headline may not seem apparent, but bear with us. This May, the UK government will consider "the continued marketing and use of highly aggressive and artificial tax avoidance schemes." As noted by VG247, businesses located in a certain part of Jersey (the UK one, not the one famous for GTL) are not required to include value added tax (VAT) in their prices. As such, many game sellers -- GAME, Amazon, Play, etc. -- base their businesses there, allowing them to sell games at lower prices than competitors (though only on items under £18).

MCV reports that the consultation planned for May will likely see current countermeasures extended. Said countermeasures allow the government to "enable the listing of specific tax avoidance schemes for direct taxes so that the subsequent use of such schemes will carry consequences for the user."

Within four years, the measures could earn the UK government as much as £4 billion. Of course, they would also have the added side effect of raising prices on certain games.

JoystiqUK government may close online shopping tax loophole originally appeared on Joystiq on Thu, 24 Mar 2011 05:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dsmacmicrosoftnintendopcplaystationps3pspsonytaxtaxesukvatwiixboxThu, 24 Mar 2011 05:00:00 EST<![CDATA[North Carolina to provide tax breaks for game companies]]>http://www.joystiq.com/2010/07/23/north-carolina-to-provide-tax-breaks-for-game-companies/http://www.joystiq.com/2010/07/23/north-carolina-to-provide-tax-breaks-for-game-companies/http://www.joystiq.com/2010/07/23/north-carolina-to-provide-tax-breaks-for-game-companies/#commentsFiled under: , ,

North Carolina is going to provide some epic tax breaks to video game developers. According to the ESA, a bill signed by Governor Beverly Perdue will provide a 15 percent tax credit on "wages and compensation for employees involved in digital media production, or the creation of a platform or engine to run such media." Of course, the big winner here is North Carolina-based Epic Games, which swims in a lake of Unreal Engine money and develops games in its spare time. However, other benefactors of the tax breaks include Electronic Arts, Ubisoft and another dozen or so developers in the state. The incentives take effect January 1, 2011.

Publishers, developers and governments use tax breaks like Ezio wields the hidden blade. It's a weapon, either for financial defense (which seems to be the case in North Carolina) or aggression. With Canada's relentless siren call of tax incentives, if other countries and states don't step up their game, The Great White North will continue its Tim Hortons-fueled march to eventually developing most of the world's video games.

JoystiqNorth Carolina to provide tax breaks for game companies originally appeared on Joystiq on Fri, 23 Jul 2010 21:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businessGears-of-War-3North-Carolinataxtax-breakstaxesFri, 23 Jul 2010 21:00:00 EST<![CDATA[TIGA and ELSPA form Steering Committee for UK tax relief]]>http://www.joystiq.com/2010/07/13/tiga-and-elspa-form-steering-committee-for-uk-tax-relief/http://www.joystiq.com/2010/07/13/tiga-and-elspa-form-steering-committee-for-uk-tax-relief/http://www.joystiq.com/2010/07/13/tiga-and-elspa-form-steering-committee-for-uk-tax-relief/#commentsFiled under: , ,

Looks like the UK's video game industry organizations aren't going to take the recent removal of their hard-fought game development tax relief plan from the nation's Emergency Budget lying down. Earlier today, TIGA and the ELSPA announced their partnership on a "Steering Committee" to investigate why the tax plan was put on ice. The duo plans to review the original submission to make a more compelling argument for gaming industry tax breaks.

Hopefully the group will find an effective solution for getting its plan approved. You know, a solution better than "let's throw our full support behind candidates in the upcoming election who promise to endorse our tax plan, only to have them forget about us mere moments after taking office."

The press release is posted after the break.

[Image credit: Bashed]

Continue reading TIGA and ELSPA form Steering Committee for UK tax relief

JoystiqTIGA and ELSPA form Steering Committee for UK tax relief originally appeared on Joystiq on Tue, 13 Jul 2010 02:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>elspaeuropepoliticstaxtax-relieftigaukTue, 13 Jul 2010 02:30:00 EST<![CDATA[UK game retailers facing pricing challenge due to VAT increase]]>http://www.joystiq.com/2010/07/02/uk-game-retailers-facing-pricing-challenge-due-to-vat-increase/http://www.joystiq.com/2010/07/02/uk-game-retailers-facing-pricing-challenge-due-to-vat-increase/http://www.joystiq.com/2010/07/02/uk-game-retailers-facing-pricing-challenge-due-to-vat-increase/#commentsFiled under: , ,

Last week, the UK Emergency Budget resulted in a proposed increase in the country's VAT (similar to a sales tax). When it goes into effect in January, the tax will increase by 2.5 percentage points. Game retailers are mulling over the possibility of absorbing the added the cost, instead of passing it to the consumer.

According to MCV's report, "senior retail figures" are reluctant to increase the price of games above the now-standard £39.99 ceiling. Afraid that the increased VAT will lower sales, retailers must consider lowering their profit margins, by paying for the increased tax. Should that prove to be unsavory though, UK gamers can expect their games -- as the price of many other retail goods -- to increase in the new year.

JoystiqUK game retailers facing pricing challenge due to VAT increase originally appeared on Joystiq on Fri, 02 Jul 2010 05:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>taxukvatFri, 02 Jul 2010 05:00:00 EST<![CDATA[TIGA delivers petition for tax relief to UK government]]>http://www.joystiq.com/2009/12/08/tiga-delivers-petition-for-tax-relief-to-uk-government/http://www.joystiq.com/2009/12/08/tiga-delivers-petition-for-tax-relief-to-uk-government/http://www.joystiq.com/2009/12/08/tiga-delivers-petition-for-tax-relief-to-uk-government/#comments
[Image credit: Bashed]
UK video game industry trade association TIGA delivered a petition today to 10 Downing Street (that's where Her Majesty ... oh, it's just the British Prime Minister's residence), seeking the introduction of Games Tax Relief. The petition was signed by 55 "senior industry figures," which gives the proposition a bit more weight than the standard internet plea. The argument set forth by Richard Wilson, CEO of TIGA, is that "if it is right to provide tax relief for the UK film industry then it is also right to provide tax relief for the UK video games sector."

TIGA's push on the UK government is being framed as a matter of survival for the British games industry. The organization previously stated that 1,700 jobs will be lost without tax breaks and that the current government funding structure for the games industry is "incoherent." If TIGA doesn't receive assistance soon, the group can always accept the outstretched hand of assistance from the ominous-sounding "Shadow Cabinet."

JoystiqTIGA delivers petition for tax relief to UK government originally appeared on Joystiq on Tue, 08 Dec 2009 01:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>britainpoliticstaxtax-relieftigaukTue, 08 Dec 2009 01:00:00 EST<![CDATA[Ireland trying to court Realtime Worlds, other Scottish devs with tax holiday]]>http://www.joystiq.com/2009/09/29/ireland-trying-to-court-realtime-worlds-other-scottish-devs-wit/http://www.joystiq.com/2009/09/29/ireland-trying-to-court-realtime-worlds-other-scottish-devs-wit/http://www.joystiq.com/2009/09/29/ireland-trying-to-court-realtime-worlds-other-scottish-devs-wit/#comments In an attempt to kick-start its own video game industry, Ireland has begun to target a number of high-profile Scottish game development studios, attempting to woo them over to the Emerald Isle by offering a five-year tax holiday. Colin Macdonald, manager of Dundee-based APB developer Realtime Worlds, responded by saying "if the package on offer in Ireland was attractive we'd have to give it serious consideration." Other Scottish developers who could be influenced by the tax holiday include Rockstar North, Denki, Ruffian Games and Dynamo Games.

Macdonald went on to say that Scotland's going to need to do more to preserve its burgeoning gaming industry in light of attractive offers from countries such as Ireland and Canada, who Realtime "lost some of [its] key staff to" in the past few years. We can't help but wonder if this might have had less to do with the strength of Canada's gaming industry, and more to do with the deliciousness of their bacon.

[Via Gamasutra]

JoystiqIreland trying to court Realtime Worlds, other Scottish devs with tax holiday originally appeared on Joystiq on Tue, 29 Sep 2009 00:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>apbcanadadenkidynamoeuropeirelandpoliticsrealtime-worldsrockstar-northruffian-gamesscotlandtaxTue, 29 Sep 2009 00:15:00 EST<![CDATA[ESA prez asks Texas to extend tax incentives for game developers]]>http://www.joystiq.com/2009/03/13/esa-prez-asks-texas-to-extend-tax-incentives-for-game-developers/http://www.joystiq.com/2009/03/13/esa-prez-asks-texas-to-extend-tax-incentives-for-game-developers/http://www.joystiq.com/2009/03/13/esa-prez-asks-texas-to-extend-tax-incentives-for-game-developers/#comments
In an op-ed piece fort the Austin American-Stateman, Entertainment Software Association president Michael Gallagher asks the Texas legislature to extend the state's economic incentive programs for the game industry -- such incentives were signed into law in 2007 by Governor Rick Perry. The bills that would extend the incentives are currently under consideration.

Gallagher states that the game industry accounts for more than one third of the $345 million invested in the state by the entertainment industry in 2007. He says further that video games are an extension of Texas' "rich cultural past" as represented by SXSW, which begins its 2009 show this week. Gallagher points out the benefits that games have brought, such as dexterity improvement for senior citizens, job training and teaching tools. He neglects, strangely, to mention that they are also awesome.

As Gallagher notes, several states are considering similar measures or extending the ones already in place and concludes, "While economic incentives for the video game industry are a sound investment for Texas' cultural legacy, they are an even better investment for the people of Texas." Let's hope the bills pass, if only to finally find out what Warren Spector has been up to.

JoystiqESA prez asks Texas to extend tax incentives for game developers originally appeared on Joystiq on Fri, 13 Mar 2009 18:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>esataxtax-breakstaxestexasFri, 13 Mar 2009 18:15:00 EST<![CDATA[Tiga: 1,700 industry jobs will be lost without UK tax breaks]]>http://www.joystiq.com/2009/03/12/tiga-1-700-industry-jobs-will-be-lost-without-uk-tax-breaks/http://www.joystiq.com/2009/03/12/tiga-1-700-industry-jobs-will-be-lost-without-uk-tax-breaks/http://www.joystiq.com/2009/03/12/tiga-1-700-industry-jobs-will-be-lost-without-uk-tax-breaks/#comments
Tiga CEO Richard Wilson has written an open letter to the British government, claiming that 1,700 jobs will be lost in the UK video game industry over the next five years if it doesn't receive tax breaks. He also believes that if the industry received a 20 percent production tax credit, that investment would increase by £220 million ($303m USD) over five years and create 1,600 jobs.

Tiga requesting tax breaks in the UK is nothing new, but the organization has been stressing the issue lately. International competition from France, Canada and the US is taking its toll on UK-based developers as, according to the letter, "the UK game development industry fell from third largest in the world based on revenue in 2006 to fourth position in 2007 and is expected to fall to fifth place in 2009."

JoystiqTiga: 1,700 industry jobs will be lost without UK tax breaks originally appeared on Joystiq on Thu, 12 Mar 2009 00:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>britainrichard-wilsontaxtaxestigaukThu, 12 Mar 2009 00:03:00 EST<![CDATA[Pennsylvania legislators consider violent game tax]]>http://www.joystiq.com/2009/03/09/pennsylvania-legislators-consider-violent-game-tax/http://www.joystiq.com/2009/03/09/pennsylvania-legislators-consider-violent-game-tax/http://www.joystiq.com/2009/03/09/pennsylvania-legislators-consider-violent-game-tax/#comments
GamePolitics spent a little time at the Pennsylvania House of Representatives last week for its hearing on violent video games. During the proceedings, a pair of State Representatives questioned the Penn. Joint State Commission about ways violent video games could be targeted. For example, putting a 5% tax on violent game sales, with those funds being allocated to parental education programs. Another suggests withholding tax incentives from companies that make violent video games.

To be clear, the meeting was exploratory, so it's a lot of talk and very little substance -- like most government conversation about video games (www.instantrimshot.com). If you're in the mood for watching congressional proceedings about taxing video games, check out the video after the break.

Continue reading Pennsylvania legislators consider violent game tax

JoystiqPennsylvania legislators consider violent game tax originally appeared on Joystiq on Mon, 09 Mar 2009 16:47:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>gamepoliticspennsylvaniapoliticstaxtaxesMon, 09 Mar 2009 16:47:00 EST<![CDATA[Tiga: 85% of UK developers want tax breaks, programmers not easy to find]]>http://www.joystiq.com/2009/03/03/tiga-85-of-uk-developers-want-tax-breaks-programmers-not-easy/http://www.joystiq.com/2009/03/03/tiga-85-of-uk-developers-want-tax-breaks-programmers-not-easy/http://www.joystiq.com/2009/03/03/tiga-85-of-uk-developers-want-tax-breaks-programmers-not-easy/#comments
This made us laugh: A report by UK trade organization Tiga found that 85% of developers in the UK supported tax breaks for game production. Only 85 percent, really?! Did the remaining 15% not understand the question? Anyway, the report also covered the UK game industry's slipping size and skill shortage.

Of the 100 UK-based CEOs and managing directors surveyed, 63% had faced skill shortages in the last year, with programmer vacancies as the most challenging to fill by 74% of those respondents. Tax burdens and foreign competition were listed as the top two barriers to expansion. Tiga CEO Richard Wilson hopes that the government will introduce a 20% tax break for local developers so the region can compete against Canada and a growing number of US States with tax incentives.

[Image]

JoystiqTiga: 85% of UK developers want tax breaks, programmers not easy to find originally appeared on Joystiq on Tue, 03 Mar 2009 02:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ceotaxtax-breakstigaukTue, 03 Mar 2009 02:00:00 EST<![CDATA[Wisconsin placing 5% tax on downloaded games, items]]>http://www.joystiq.com/2009/02/26/wisconsin-placing-5-tax-on-downloaded-games-items/http://www.joystiq.com/2009/02/26/wisconsin-placing-5-tax-on-downloaded-games-items/http://www.joystiq.com/2009/02/26/wisconsin-placing-5-tax-on-downloaded-games-items/#comments
Wisconsin will implement a 5 percent sales tax on "digital goods" starting October 1, reports The Spectator. The tax is expected to raise $10.9 million over the next two years; meanwhile, the state currently has a $6 billion budget deficit. That's like trying to melt an iceberg by licking it.

The tax will affect music, movies, digital books, ringtones, games and DLC -- no mention of porn (but that's streamed now anyway, not really "downloaded"). Wisconsin isn't pure evil, though, it did begin offering a 25 percent tax break to game developers last year. You take the good, you take the bad, you take them both and there you have: the facts of life.

[Via GamePolitics; image credit: cdw9]

JoystiqWisconsin placing 5% tax on downloaded games, items originally appeared on Joystiq on Thu, 26 Feb 2009 12:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>big-fightjim-doyletaxwisconsinThu, 26 Feb 2009 12:50:00 EST<![CDATA[ECA leading 'action campaign' against proposed digital distribution tax]]>http://www.joystiq.com/2009/02/25/eca-leading-action-campaign-against-proposed-digital-download/http://www.joystiq.com/2009/02/25/eca-leading-action-campaign-against-proposed-digital-download/http://www.joystiq.com/2009/02/25/eca-leading-action-campaign-against-proposed-digital-download/#commentsFiled under:


If you've ever wondered what the Entertainment Consumers Association actually does, here's your answer -- in an attempt to combat a proposed tax on digitally distributed content and games in a number of states, the ECA is mobilizing its troops in an "action campaign" against these taxes. Specifically, the group will be rallying its members in Washington, Mississippi and New York to protest DLC tax bills that are currently working their way through their respective state legislatures.

In an email to ECA members residing in Washington state, the organization's redundantly named president, Hal Halpin, pointed out the unconsidered negative effects of such a tax, saying it will "suppress consumption, which will cause layoffs at effected businesses, including the video game industry, which employs many Washington residents." We can't wait to see what protest tactics the ECA employs in Microsoft's home state -- folk music? Cosplay? We're betting on rampant property destruction -- after all, it's not a Washington protest until you bust up a few Starbucks.

JoystiqECA leading 'action campaign' against proposed digital distribution tax originally appeared on Joystiq on Wed, 25 Feb 2009 17:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dlcecahal-halpinprotesttaxwashingtonWed, 25 Feb 2009 17:03:00 EST<![CDATA[North Carolina considering digital download tax]]>http://www.joystiq.com/2009/01/28/north-carolina-considering-digital-download-tax/http://www.joystiq.com/2009/01/28/north-carolina-considering-digital-download-tax/http://www.joystiq.com/2009/01/28/north-carolina-considering-digital-download-tax/#comments
North Carolina legislators are looking to modernize the state's tax code by including digital download charges. News-14 reports the new tariff could generate $12 million over the next year, a paltry figure compared to the state's currently expected revenue shortfall of $2 billion.

The new tax would affect digital purchases of music, movies, software and games. Rep. Paul Luebke (D) explains that it only makes sense that customers should pay state tax on digital items, because it's just like any other store. That may be, but is the way out of a bad economic situation to tax the consumer more?

[Via GamePolitics]

JoystiqNorth Carolina considering digital download tax originally appeared on Joystiq on Wed, 28 Jan 2009 12:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>culturenorth-carolinapoliticstaxWed, 28 Jan 2009 12:55:00 EST<![CDATA[LGJ: Virtual Taxation]]>http://www.joystiq.com/2009/01/23/lgj-virtual-taxation/http://www.joystiq.com/2009/01/23/lgj-virtual-taxation/http://www.joystiq.com/2009/01/23/lgj-virtual-taxation/#commentsFiled under:

Each week Mark Methenitis contributes Law of the Game on Joystiq ("LGJ"), a column on legal issues as they relate to video games:
It seems around this time every year, with W2s and 1099s filling mailboxes, that someone thinks it's a good idea to bring up the idea of taxing the virtual world. The irony really is that most of these discussions are far from complete and often only address one potential viewpoint that could be taken.

The latest commentary comes from the Washington Post (via GamePolitics) with further follow up on New World Notes based on a recent publication by the IRS. Their basic contention is that the essential difference in the Terms of Service between the Second Life model and the more traditional MMO model (i.e. World of Warcraft, Ultima Online, Everquest) would mean different tax treatment. I don't think it's nearly so cut and dry.

Continue reading LGJ: Virtual Taxation

JoystiqLGJ: Virtual Taxation originally appeared on Joystiq on Fri, 23 Jan 2009 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>irslawlaw-of-the-gamemmommo-industrymmogmmorpgtaxtaxesFri, 23 Jan 2009 16:50:00 EST<![CDATA[GDAA mate, Aussie developer group chief quitting]]>http://www.joystiq.com/2008/06/19/gdaa-mate-aussie-developer-group-chief-quitting/http://www.joystiq.com/2008/06/19/gdaa-mate-aussie-developer-group-chief-quitting/http://www.joystiq.com/2008/06/19/gdaa-mate-aussie-developer-group-chief-quitting/#commentsFiled under:


Greg Bondar, CEO of the Game Developers' Association of Australia (GDAA), will quit his post on July 12. Bondar tells Gamespot AU that he's moving on to "pursue other opportunities" after being with the organization for 18 months.

The GDAA has been the group pushing for Aussie game developers to receive the 40% tax break currently bestowed upon their film-making brethren. The group is trying to prevent the continent from being left behind as various nations and states lure game developers with yummy tax breaks. Mmmmmm, tax breaks.

JoystiqGDAA mate, Aussie developer group chief quitting originally appeared on Joystiq on Thu, 19 Jun 2008 17:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>australiagdaataxtax-breaktax-breaksThu, 19 Jun 2008 17:30:00 EST<![CDATA[Wisconsin offers 25 percent tax break for game devs]]>http://www.joystiq.com/2008/06/18/wisconsin-offers-25-percent-tax-break-for-game-devs/http://www.joystiq.com/2008/06/18/wisconsin-offers-25-percent-tax-break-for-game-devs/http://www.joystiq.com/2008/06/18/wisconsin-offers-25-percent-tax-break-for-game-devs/#commentsFiled under:


Here's a little known fact about Wisconsin: Did you know that it's unlawful to run a bar in the state unless you have at least six fish hanging on the wall? And if this didn't sell you on the virtues of the Badger State, frankly get off our lawn. Unless, of course, you're a game developer with an interest in settling down in Wisconsin, as the state has announced that it now offers devs a 25 percent tax rebate just for calling it home.

The move, which also includes businesses in the film and television industries, echoes similar initiatives by states such as Georgia and others to lure game developers across their borders. Wisconsin is already home to a handful of notable studios, including Marvel Ultimate Alliance dev Raven Software and Prey's Human Head, though it will be interesting to see if this sizable tax break, along with an additional 15 percent credit for "infrastructure development," will be enough to convince devs to put down roots in America's Dairyland.

JoystiqWisconsin offers 25 percent tax break for game devs originally appeared on Joystiq on Wed, 18 Jun 2008 11:44:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>rebatetaxwisconsinWed, 18 Jun 2008 11:44:00 EST<![CDATA[Tiga: Georgia incentives highlight UK game devs need tax breaks]]>http://www.joystiq.com/2008/05/19/tiga-georgia-highlights-uk-game-devs-need-tax-breaks/http://www.joystiq.com/2008/05/19/tiga-georgia-highlights-uk-game-devs-need-tax-breaks/http://www.joystiq.com/2008/05/19/tiga-georgia-highlights-uk-game-devs-need-tax-breaks/#commentsFiled under: ,


Tiga, a trade association for game developers in the UK and Europe, made a statement today that tax incentives in other territories are hurting UK games development. The group highlights the recent tax breaks announced by the US state of Georgia as something the government in its own country should be doing.

Richard Wilson, CEO of Tiga, says the Georgia tax breaks show how other state and national governments are competing to make the most "hospitable environment for games production." He believes the UK needs to create tax credits and increase the supply of qualified graduates to grow the industry. He points out the UK can't afford to ignore "heavily subsidized competition" from competing nations. Australia's GDAA has also been pushing its government to give the games industry the 40% tax break it offers the film industry.

[Via GI.biz]

JoystiqTiga: Georgia incentives highlight UK game devs need tax breaks originally appeared on Joystiq on Mon, 19 May 2008 10:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>industrytaxtaxestigaMon, 19 May 2008 10:25:00 EST<![CDATA[UK developer consortium Tiga cries foul over Canada tax breaks]]>http://www.joystiq.com/2008/03/08/uk-developer-consortium-tiga-cries-foul-over-canada-tax-breaks/http://www.joystiq.com/2008/03/08/uk-developer-consortium-tiga-cries-foul-over-canada-tax-breaks/http://www.joystiq.com/2008/03/08/uk-developer-consortium-tiga-cries-foul-over-canada-tax-breaks/#commentsFiled under: ,


It's common knowledge that game companies have been migrating to Canada's developer-friendly shores for some time, a side effect owing more to the region's inviting tax breaks than to its scenery or love of winter sports. Now the UK's Independent Games Developers Association, a gathering more commonly known at Tiga, has cried foul, referring to Canadian government subsidies to game developers as unfair, and that by offering tax incentives "the playing field is increasingly tipped against UK based games developers."

Tiga CEO Richard Wilson has issued a statement calling for the UK government to investigate whether or not Canada's tax breaks for game companies violate any World Trade rules -- something the organization feels is "likely" -- and if so, to "take action via the World Trade Organisation against Canada at the earliest opportunity."

Until such a ruling can be made, however, Wilson has asked the government to "introduce tax breaks for game production in the UK in order to level the playing field against unfair competition." Honestly, nobody likes a crybaby, and if the UK would would match the efforts of Canada, maybe developers like Eidos or Ubisoft wouldn't be so keen on bundling up and setting up shop in America's great white north.

JoystiqUK developer consortium Tiga cries foul over Canada tax breaks originally appeared on Joystiq on Sat, 08 Mar 2008 13:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>canadaeidostaxtigaubisoftukSat, 08 Mar 2008 13:50:00 EST<![CDATA[New Mexico legislators consider video game tax for outdoor programs]]>http://www.joystiq.com/2008/01/26/new-mexico-legislators-consider-video-game-tax-for-outdoor-progr/http://www.joystiq.com/2008/01/26/new-mexico-legislators-consider-video-game-tax-for-outdoor-progr/http://www.joystiq.com/2008/01/26/new-mexico-legislators-consider-video-game-tax-for-outdoor-progr/#commentsFiled under:


The mainstream media and other non-consumers of video games have been portraying gamers as pasty, bleary-eyed shut-ins since the 8-bit days -- aside from some bruised feelings, that stereotype never really did us any harm. However, a recent proposal of the powerful environmental organization The Sierra Club to the New Mexico state legislature may put a dent in the pockets of consumers and retailers living in the Land of Enchantment.

The proposal calls for a 1 percent sales tax on televisions and video games; the proceeds of which would go to "outdoor education programs". According to an article in the Huffington Post, these programs would counteract the negative effects of video games -- "lower academic scores, obesity, and increased attention-deficit disorder." Supporters of the "No Child Left Inside" movement tried to pass a similar bill last year, but were unsuccessful.

Unsurprisingly, gaming advocacy groups have spoken out against the bill's obvious shortcomings, such as its assumption that video games are the sole contributor to childhood obesity, lower grades and ADD. We couldn't agree more. The only weight we've gained from being gaming enthusiasts is from our skin growing thicker due to constant attacks on our lifestyle.

JoystiqNew Mexico legislators consider video game tax for outdoor programs originally appeared on Joystiq on Sat, 26 Jan 2008 20:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>addgradenew-mexiconewmexicoobesityoutdooreducationoutdoorssierraclubtaxSat, 26 Jan 2008 20:30:00 EST<![CDATA[Wisconsin politician proposes 1% tax on video games]]>http://www.joystiq.com/2008/01/07/wisconsin-politician-proposes-1-tax-on-video-games/http://www.joystiq.com/2008/01/07/wisconsin-politician-proposes-1-tax-on-video-games/http://www.joystiq.com/2008/01/07/wisconsin-politician-proposes-1-tax-on-video-games/#commentsFiled under:


Another year, another silly bill that'll probably end with taxpayers having to pay an overzealous state's legal bills. Wisconsin Senator Jon Erpenbach is proposing a bill that will raise a child's age to be considered an adult in the state's criminal court from 17 to 18, but the way he wants to pay for "driving up costs [in] counties that administer court procedures" is by placing a 1% tax on video games and video game consoles.

The Entertainment Software Association obviously went straight to the battle chest with an eye-roll and a sigh. Joystiq received comment from ESA prez. Mike Gallagher (full statement after the break) where he says, "[The bill] unfairly burdens all Wisconsin consumers by imposing a double tax on video games and game consoles ... there is no public policy support for the bill: The fact is that national juvenile crime has decreased as video games have soared in popularity." If the Wisconsin legislators don't shoot this bill down, the judges will probably do it for them later -- Wisconsin taxpayers should prepare to foot the legal bills soon after.

[Thanks, Ed]

Continue reading Wisconsin politician proposes 1% tax on video games

JoystiqWisconsin politician proposes 1% tax on video games originally appeared on Joystiq on Mon, 07 Jan 2008 16:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>esataxwisconsinMon, 07 Jan 2008 16:15:00 EST<![CDATA[EU approves tax breaks for developers]]>http://www.joystiq.com/2007/12/12/eu-approves-tax-breaks-for-developers/http://www.joystiq.com/2007/12/12/eu-approves-tax-breaks-for-developers/http://www.joystiq.com/2007/12/12/eu-approves-tax-breaks-for-developers/#commentsFiled under: ,


The European Commission has approved film industry tax breaks to the video game industry. The request was made by the French government and the program will offer a 20% rebate to games that have a "criteria of quality, originality and contribute to cultural diversity." It is estimated that half of the games created in Europe this year would have qualified for the rebate. There's obviously some easy French jokes that could be tossed in here, but let's build bridges, shall we?

Governments recognizing games as "culture" and supporting the industry with tax incentives is an issue that's popping up with developers all over the world. Canada is kind to developers, while Australian developers (last time we heard) continue to fight for tax breaks in their country where the film industry actually gets a 40% tax rebate. The countries which cut the costs, promote the industry and look yummy to developers already strapped for cash.

JoystiqEU approves tax breaks for developers originally appeared on Joystiq on Wed, 12 Dec 2007 09:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>eaElectronic-ArtsfrancetaxtaxbreakWed, 12 Dec 2007 09:20:00 EST<![CDATA[Australian developers still want their tax break]]>http://www.joystiq.com/2007/08/01/australian-developers-still-want-their-tax-break/http://www.joystiq.com/2007/08/01/australian-developers-still-want-their-tax-break/http://www.joystiq.com/2007/08/01/australian-developers-still-want-their-tax-break/#commentsFiled under: ,

The Game Developers Association of Australia (GDAA) has followed up previous calls by writing to the Government's arts minister and opposition minister asking that the game industry receive the 40% tax rebate offered to the film industry. The GDAA says that the break would bring in an extra $5 million a year of investment capital in Australian developers.

"

We have a commitment to ensuring that participants in the interactive entertainment industry are equally competitive with our overseas competitors," said Greg Bondar, executive director of the GDAA.

The Australian request is similar to the tax breaks in Canada which have brought more investment into their country's game industry. Well, here's hoping for the tax break, because that'll be a g'day for GDAA. Oy, that was awful.

JoystiqAustralian developers still want their tax break originally appeared on Joystiq on Wed, 01 Aug 2007 21:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>australiagamedevelopertaxtaxbreakWed, 01 Aug 2007 21:30:00 EST<![CDATA[Taxing Second Life [update 1]]]>http://www.joystiq.com/2006/10/16/taxing-second-life/http://www.joystiq.com/2006/10/16/taxing-second-life/http://www.joystiq.com/2006/10/16/taxing-second-life/#commentsFiled under: , , ,

The new Reuters Second Life branch reports on a Congressional probe into games with virtual economies like Second Life and World of Warcraft. Massive amounts of money changes hands in these titles; Second Life users spend up to $500,000 in daily transactions. The U.S. government has caught the scent of money wafting up from the internet tubes and hopes to get its share.

Americans are already required to pay taxes on real-world earnings when they cash out of a game, but should they pay taxes on virtual, in-game profits? For example, citizens pay capital gains taxes on real-world asset sales -- profits from an investment over time -- but in-game capital gains policy and enforcement are unclear. Should you owe Linden Dollars to the U.S. government after selling Second Life property in-game, even if you don't cash-out to U.S. currency?

Should virtual worlds be governed by real-world laws, or are they becoming something closer to their own nations? If governments start taxing strictly in-game situations, will gamers deserve in-game social services and a virtual seat in Congress?

[Via Second Life Insider]

[Update 1: Thanks, Ish, for the capital gains lesson. Sorry for the mistake; the second paragraph is clarified.]

JoystiqTaxing Second Life [update 1] originally appeared on Joystiq on Mon, 16 Oct 2006 17:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>capital gainsCapitalGainsCongressgovernmentSecond LifeSecondLifetaxMon, 16 Oct 2006 17:10:00 EST<![CDATA[Let's tax games, proposes Texas senator]]>http://www.joystiq.com/2006/04/28/lets-tax-games-proposes-texas-senator/http://www.joystiq.com/2006/04/28/lets-tax-games-proposes-texas-senator/http://www.joystiq.com/2006/04/28/lets-tax-games-proposes-texas-senator/#commentsFiled under:

Senator Juan HinojosaSenator Juan "Chuy" Hinojosa of Texas recently proposed a plan that would generate an estimated $65 million, which could be used to build or upgrade public schools. That plan is to apply a special tax to video game sales. The logic behind the proposal is that if school-aged kids are spending a lot of money on video games - or parents are spending a lot of money on games for their school-aged kids - these consumers can spend a little bit more in order to improve their school systems.

What's outrageous is that the proposal has not been extended to other forms of popular consumer entertainment. Music? Movies? Why doesn't Hinojosa want to tax these formats?

JoystiqLet's tax games, proposes Texas senator originally appeared on Joystiq on Fri, 28 Apr 2006 15:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Juan HinojosaJuanHinojosasenatortaxTexasFri, 28 Apr 2006 15:25:00 EST