Additional games originating from Germany?
In a significant move, the German government has announced plans to strengthen its support for local game developers, with a focus on tax incentives. This decision, welcomed by politicians from various factions, is seen as a promising investment in the German gaming location.
The federal government will be allocating 88 million euros this year and aiming to increase this to 125 million euros by 2026. Hendrik Lesser of Munich's Remote Control Productions views this increase in funds as a sign that the topic is being taken more seriously in this legislative period than ever before.
The goal is to create a system where game manufacturers can claim certain costs and pay less tax, which is intended to stimulate investments. NRW Minister of Culture Nathanael Liminski (CDU) believes that such a system could attract foreign developer studios and producers to Germany, creating jobs and potentially increasing tax revenues.
Industry experts like Malte Behrmann view the federal government's plans positively, but call for a different orientation of the funding policy in the future. Behrmann favours game companies that also tax their profits in Germany, stating that international games conglomerates have so far pocketed German funding while taxing their profits abroad.
The Greens support tax incentives for gaming companies, viewing them as a targeted investment in the future of the economic location Germany. The Green Bundestag MP, Andrea Lübcke, views gaming as a central innovation and growth industry of the 21st century, and a significant cultural asset.
Countries like France, Canada, and Britain have had such tax relief for a long time, and as a result, they have a stronger gaming industry than Germany. Politicians like Joachim Ebmeyer (CDU) and Holger Mann (SPD) believe that the federal government can afford tax breaks, stating that enabling investments today will benefit the German economy and people in the long run.
The Federal Research Minister Dorothee Baer (CSU) stated that they are working "at full speed" on this, negotiating with the Federal Ministry of Finance and the federal states. Malte Behrmann criticizes that international games conglomerates have so far pocketed German funding while taxing their profits abroad. However, he acknowledges that international corporations that benefit from Germany's future tax advantages by taxing their profits in Germany are mainly those investing heavily and reinvesting profits domestically, especially medium-sized enterprises (KMUs) and single or partnership businesses that retain earnings (thesaurieren) to utilize lower corporate tax rates gradually reduced to 25% by 2032.
Successful German games include "Anno 1800" from Ubisoft, "Enshrouded" from Keen Games, and "Hunt Showdown" from Crytek. As the gaming industry continues to grow in the internet age, with visual possibilities improving thanks to new technology, it is hoped that these tax incentives will help Germany's domestic game developers compete on a global scale.
In the future, game companies that also tax their profits in Germany should be particularly favoured in terms of tax incentives, according to Malte Behrmann. Less than five percent of the money spent on games in Germany goes to games from the Federal Republic, a statistic that the German government aims to change with these tax incentives.
