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The European Commission gave the green light to a tax shelter in Belgium’s gaming sector, according to the Commission. This opens the door to new success stories as investors receive tax exemptions by making a risk-free investment, while the Belgian government benefits from increased economic activity.
Wallonia is the southernmost region of Belgium and is already a hotbed of gaming companies. This is due to the excellent ecosystem of dynamic studios that develop games, such as Fishing Cactus and Appeal.
Intro
Since its introduction in 2003 the tax shelter for the AV industry is a success, generating over 200m EUR/year. This amounts to nearly 2.4bn EUR. Since 2017, the tax shelter has been expanded to include ‘performing arts.’ The tax shelter will now be extended to the gaming industry from 2023.
How does HTML0 work?
The Belgian tax shelter, a tax incentive approved by the government to encourage gaming productions in Belgium. The Belgian tax shelter is available to Belgian productions and international coproductions that meet certain criteria.
The agreement benefits all three parties. The producer receives a very attractive financing option, the investor gets a tax exemption for a risk-free investment, and the Belgian government gains increased economic activity.
The Ministry of Finance may issue tax shelter certificates based on the amount of investment costs that the production will spend in Europe, and the direct and indirect expenses that are eligible for Belgium. Investors must pay the full amount within three months after signing the framework agreement. The investor can pre-finance production costs and/or postproduction in exchange for tax advantages and a potential fixed return.
What is the advantage for the producer?
The tax shelter permits financing up to 33.7% of the gross (27.2% net) production budget for the total expenses that qualify in the EEA. The tax shelter is available for all expenditures in the European Economic Area for video game-related goods and services. All European Union nations, as well as Norway Liechtenstein and Iceland are included.
The success of the tax shelter to date has shown that it is a great opportunity for gaming studios, and their investors. Michela Ritondo, at the Fiscal Department for Foreign Investments of Federal Finance Ministry, said: “From 2002 until 2022, over 2,000 audiovisuals works were financed by the tax shelter for an investment total of EUR 2,4 billion. We encourage both gaming studios, and their investors, to get in touch with us.
More information
Federal Finance Ministry
The Fiscal Department for Foreign Investments
Michela Ritondo
Boulevard du Roi Albert II, 33 (North Galaxy)
BE – 1030 Brussels
Phone: +32 (0)257 938 69
E-Mail: Michela.Ritondo @Minfin.fed.be
Website: www .fin.belgium .be
