Video game companies are calling for changes to a tax credit for their industry to be announced in next week's Budget.
The Digital Game Tax Credit was launched in November 2022 and offers companies developing digital games a tax credit of up to 32% per qualifying game.
In May, it emerged that while a number of gaming companies had begun the process of applying for the tax break, no firm had yet claimed the relief.
The Department of Finance said that position has now changed and there has been an increase in claims, but added that it would not be possible to provide the number of claims made due to taxpayer confidentiality.
Calls for tax break to be reviewed
In its pre-budget submission, Imirt, the Irish games representative body, called for a number of improvements to the scheme.
It wants claims to be allowed for partial game development projects, currently only companies that develop and complete the entire game development can qualify for the tax relief.
Imirt is calling for the cut-off point for qualifying expenditure to be revised to cover post-launch investments and significant content updates.
The group also wants to see Irish studios providing contract work for third parties outside of Ireland to be able to avail of the tax credit.
Current requirements mean that only digital games 'developed and completed' by a company qualify for the relief.
"The tax credit is amazing, it's a really great incentive, both for our indigenous studios here in Ireland and also as a vector for foreign direct investment," said Colm Larkin, CEO of Imirt.
"But if you think about what's wrong with it for foreign direct investment, there are a few little tweaks that need to be made to make it much more attractive and derisk it a little bit."
"So if someone is coming in here and taking a huge bet on Ireland and our sector, they should make sure that this tax credit is going to work for them," Mr Larkin said.
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Major gaming conference in Dublin
The tax credit was among a range of topics discussed at a major gaming convention that took place in Dublin today.
Around 300 domestic and international game developers, publishers, investors and service providers gathered for the NEXUS Games Conference.
Talks from global gaming experts, as well as roundtable discussions and networking events, explored topics such as the impact of AI on the industry, and overcoming obstacles for women in gaming.
It is estimated that Ireland's digital gaming sector could be worth around €250 million, but games developed in Ireland account for a small portion of this figure.
"The global games industry is now worth more than the music and film industry combined, with the estimated value expected to reach over $385bn in the coming years," said Stuart Dempsey, CEO of NEXUS Games Conference.
"Ireland has all the ingredients to continue developing a world class games industry and we want NEXUS to play an important role in that journey," Mr Dempsey said.
