Canada To Lose Some Video Game Subsidies
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http://www.3dvf.com/actualite-3384--jeu-video-se-serre-ceinture-au-quebec.html
Google Translate:
While the UK has announced aid for animation and video games, and while the French presidential campaign seems resolutely avoid talking culture (and a fortiori the videogame creation), Canada announces measures that may disrupt the video game industry.
Canada: gloomy time for Ubisoft and EA
How to relate the Le Figaro or LaPresse.Ca , the new federal budget provides for the leading edges of the tax credits for R & D of large foreign groups. The goal: a saving of 1.3 billion euros. Problem, the big Canadian publishers, but not a strong presence on site such as EA, Ubisoft or Eidos benefited enormously from these advantages.
Thus, the refundable tax credit from 20 to 15% in 2014, tells us LaPresse.ca, expenses such as computer equipment will be excluded from the calculation, the share of wages applicable from 65% to 55%, and R & D outsourced no longer be deducted only up to 80% against 100% currently.
In Quebec, however, publishers will benefit from a specific tax credit: up to 37.5% of salaries of the studio. Consideration limiting case.
The actual impact will be felt in 2013 and 2014 according to the measurements, the editors could then take the opportunity to focus on developing games more hospitable climes, like the USA or Ireland.
While a study published in February 2012 stood a very flattering picture of the video game industry in Quebec (8,000 jobs in 2011 against 1,200 in 2002), these ads could well reverse, or at least slow the growth of the studios.
UK: end of the bleeding?
For the United Kingdom, this announcement is obviously very good news. The tax measures recently adopted (in parallel to those of the animation) were already contain the inexorable passage of the studios: a study by Game Investor Consulting (which favors the development sector in the UK), 10% of jobs video game have been removed between 2008 and 2011. Over the period 2009-2011, 41% of these lost jobs have actually been relocated ... In countries with more favorable tax policy, Canada in mind.
The austerity measures announced by Ottawa, combined with measures of the United Kingdom, may therefore give new life to the game across the Channel.
France: Do not celebrate too soon
What about the implications for French companies? According to Julien Villedieu, managing director of the National Union of video games (SNJV) interviewed by Le Figaro, there will be no revolution. He noted that Canada remains an attractive place to produce games from all of Europe, it also quotes the Secretary of State for Foreign Trade, in which France lost half of its jobs in the area . With these measures, there will probably more than a rebalancing step forward.
Also noteworthy is that the situation could worsen in the hexagon: the Tax Credit Video Game French, launched in 2008 for a period of four years, died in January as planned, without relief for now. And it might not be renewed .
This measure currently allows studios to deduct 20% of development costs on their taxes, in the limit of 3 million and subject to meeting certain criteria: Thu violent or pornographic budget of over € 150 000, present a European cultural dimension. The latter criterion has to pass the measure with the European Comission: the measure should not be masked assistance to the entire French video game sector, which would have created a distortion of competition.
Attention, which says "cultural dimension" does not necessarily mean educational game: as shown in Figaro, citing the CNC (Centre National du Cinema and the Moving Image), it is defined by "the quality, originality or innovative concept and the artistic level of spending "that" contribute to the development of French and European photographers in the field of video games. "
In practice this means that a studio like Quantic Dream has benefited from the tax credit, David Cage has even been argued that without this aid, the studio would probably have gone to Canada.
But in Brussels, the arguments of the past no longer hold: the Commission stresses that the development of mobile games and social networks has greatly increased the potential market, the profitability would be easier, and aid could not be justified . The site Develop , meanwhile, understands that the real reasons may be on the side of the risk of distortion of competition. The Commission could also choose to oppose aid to the United Kingdom.
For more information: Le Figaro has published two very comprehensive articles on Chloe Woitier measures in Canada and the Tax Credit Video Game French .
Google Translate:
While the UK has announced aid for animation and video games, and while the French presidential campaign seems resolutely avoid talking culture (and a fortiori the videogame creation), Canada announces measures that may disrupt the video game industry.
Canada: gloomy time for Ubisoft and EA
How to relate the Le Figaro or LaPresse.Ca , the new federal budget provides for the leading edges of the tax credits for R & D of large foreign groups. The goal: a saving of 1.3 billion euros. Problem, the big Canadian publishers, but not a strong presence on site such as EA, Ubisoft or Eidos benefited enormously from these advantages.
Thus, the refundable tax credit from 20 to 15% in 2014, tells us LaPresse.ca, expenses such as computer equipment will be excluded from the calculation, the share of wages applicable from 65% to 55%, and R & D outsourced no longer be deducted only up to 80% against 100% currently.
In Quebec, however, publishers will benefit from a specific tax credit: up to 37.5% of salaries of the studio. Consideration limiting case.
The actual impact will be felt in 2013 and 2014 according to the measurements, the editors could then take the opportunity to focus on developing games more hospitable climes, like the USA or Ireland.
While a study published in February 2012 stood a very flattering picture of the video game industry in Quebec (8,000 jobs in 2011 against 1,200 in 2002), these ads could well reverse, or at least slow the growth of the studios.
UK: end of the bleeding?
For the United Kingdom, this announcement is obviously very good news. The tax measures recently adopted (in parallel to those of the animation) were already contain the inexorable passage of the studios: a study by Game Investor Consulting (which favors the development sector in the UK), 10% of jobs video game have been removed between 2008 and 2011. Over the period 2009-2011, 41% of these lost jobs have actually been relocated ... In countries with more favorable tax policy, Canada in mind.
The austerity measures announced by Ottawa, combined with measures of the United Kingdom, may therefore give new life to the game across the Channel.
France: Do not celebrate too soon
What about the implications for French companies? According to Julien Villedieu, managing director of the National Union of video games (SNJV) interviewed by Le Figaro, there will be no revolution. He noted that Canada remains an attractive place to produce games from all of Europe, it also quotes the Secretary of State for Foreign Trade, in which France lost half of its jobs in the area . With these measures, there will probably more than a rebalancing step forward.
Also noteworthy is that the situation could worsen in the hexagon: the Tax Credit Video Game French, launched in 2008 for a period of four years, died in January as planned, without relief for now. And it might not be renewed .
This measure currently allows studios to deduct 20% of development costs on their taxes, in the limit of 3 million and subject to meeting certain criteria: Thu violent or pornographic budget of over € 150 000, present a European cultural dimension. The latter criterion has to pass the measure with the European Comission: the measure should not be masked assistance to the entire French video game sector, which would have created a distortion of competition.
Attention, which says "cultural dimension" does not necessarily mean educational game: as shown in Figaro, citing the CNC (Centre National du Cinema and the Moving Image), it is defined by "the quality, originality or innovative concept and the artistic level of spending "that" contribute to the development of French and European photographers in the field of video games. "
In practice this means that a studio like Quantic Dream has benefited from the tax credit, David Cage has even been argued that without this aid, the studio would probably have gone to Canada.
But in Brussels, the arguments of the past no longer hold: the Commission stresses that the development of mobile games and social networks has greatly increased the potential market, the profitability would be easier, and aid could not be justified . The site Develop , meanwhile, understands that the real reasons may be on the side of the risk of distortion of competition. The Commission could also choose to oppose aid to the United Kingdom.
For more information: Le Figaro has published two very comprehensive articles on Chloe Woitier measures in Canada and the Tax Credit Video Game French .
Replies
Though, I did see this coming. Harper was very clear in his election campaign that he was going to cut funding for the industry.
French Canada is losing its game dev tax breaks... Just like British Columbia did. You only need to look at how much that completely annihilated their industry
Fuck...
Shit. Worse than I feared...
People in Canada needs to stop scatter voting and actually vote for someone appropriate.
I dont really think the problem with the last election was scatter voting though. PC just sort of dominated. You could argue that the terrible performance by the liberals was part of the problem, though most of the people that were normally liberal voters probably just voted NDP, and it still wasn't enough.
dont they have this already? it sounds like some stuff is getting scaled back but not that huge salary subsidy that they have. unless I have no idea what I am reading? headed to UBI next month, hope this doesnt bite me in the ass in the long run.
I personally don't know anyone that likes them, yet they somehow do really well.
Instead of say, voting for the Pirate, Blue or Green Party as a focused group, everyone is voting randomly, while anyone who is a conservative is going to vote for Harper, so he will end up getting the majority of the votes while everyone can be happy with who got second place again.
The NDP party last year was doing pretty well last I recall, but the untimely call back of Jack Layton due to Cancer was untimely.
So yeah, Canadians really need to focus their heads together this time around.
The car industry in the UK over the last 10 years was practically wiped out by uncompetitive tax rates. It sure finished off our own makes anyway.
This made me laugh, however it's not true for me unfortunately. I grew up in Manitoba and Alberta (mostly Manitoba though) and people in these areas are extremely PC. Even to the degree where a PC bias slips into the public school system.
For me personally, which party is in power isn't a big deal, as long as they make good decisions. Every time I read the news or hear about Harper and the current PC party, it's negative. Almost universally. Have we really gained anything with Harper? I know the dollar has been valuable at certain points in the last few years, but I assumed that was more indicative of an economic collapse of other countries, rather than the Canadian economy being strong.
Either way, hopefully we can get a leadership change the next time around. If anyone knows of good stuff Harper does, you should share, I'm honestly curious.
From what I hear though, NDP is doing very well with their new leader though.
But seriously, the fact that Harper was held in contempt just before the last election, then they had to do a revote in toronto because people from the harper administration were calling people and telling them that their voter card was wrong and they had to go to a different voting station, ultimately making it so they couldnt vote because their card was actually right... How the F hasnt he been kicked out?
Stop fucking with our industry!!!
Politics can be a boring business trying to get an issue raised but persistence works and someone has to do it. None of us want to go on PC and keep seeing threads about lay off's and closures regardless of where you're from, its never nice to see that.