Tax Incentives for Video Games Development. Video Games Tax Credit. Compatibility with EU Law

Abstract

This article investigates the legal framework that is applied when tax credit is implemented as a financial mechanism for supporting developers and publishers of video games with cultural content. The article also examines the compatibility of this type of financial support with the EU law, mainly with the EU Treaty rules on state aid, and provides an overview of the two investigations undertaken by the European Commission, regarding the notifications made by France and the United Kingdom on tax credit granting for video games creation.

Keywords: State aid, tax incentives, tax credit, tax relief, financial support, video games development, cultural content

JEL Classification: Y20, K39