Companies
The digital games tax credit: 32% of development costs
Last updated 16 October 2026
Games companies can claim a 32% corporation tax credit on qualifying development spending, up to €25 million a game. Budget 2026 extended it to 2031.
The section 481A digital games credit supports companies developing games that contribute to the promotion and expression of Irish and European culture. It is a corporation tax credit for a digital games development company, worth 32% of qualifying spending on a certified game.
How much
The credit is 32% of the lowest of:
- eligible expenditure (all the spending that can count) on developing the game
- 80% of the qualifying expenditure
- €25,000,000, so the credit for one game can't exceed €8 million
A game with qualifying expenditure under €100,000 doesn't qualify. Under EU State aid rules, total public support for a game can't exceed 50% of its cost. For a game with €3,000,000 of qualifying and €2,600,000 of eligible expenditure:
| Lowest of eligible spend, 80% of qualifying spend, and €25m | €2,400,000.00 |
| Credit at 32% | €768,000.00 |
Cultural certification
Before claiming, the company needs a cultural certificate from the Minister for Culture, Communications and Sport. An interim certificate lets it claim as development goes on; a final certificate follows completion.
Claiming and payment
- The claim is made on the company's corporation tax return, as an interim claim during development or in full on completion.
- For spending in accounting periods from 1 January 2024, the credit isn't set against corporation tax automatically. The company elects to have it treated as an overpayment of tax, to set against other taxes or be repaid.
- A final claim must be made within 12 months of the end of the accounting period in which the last of the expenditure was incurred.
Extension to 2031
Budget 2026 extended the credit by six years to 31 December 2031 and allowed claims for post-release content work, subject to conditions. Both changes were subject to EU State aid approval.
Work it out
Sources
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.