Strong support for the BIU proposal of taxed-based games funding

• The association of the German games industry presents the first draft of a model for tax-based games funding
• ‘Our proposal generated some very positive discussions. Now we need to make sure that the debate we’ve started keeps going throughout the election year 2017.’

Berlin, 28 November 2016 – Last Wednesday the Parliamentary Evening ‘Talk@BIU: New ways of cultural funding – a tax-based funding model for games from Germany’ in Berlin generated strong interest and lively discussions: the BIU, the German Games Industry Association, had invited around 100 guests from politics, public administration and the games industry and presented its initial proposal for a model of tax-based funding for games development in Germany.
 
Under this model, developers of computer and video games would be funded via a transparent and reliable mechanism that reduces their tax liability by a cultural promotion bonus of 25 per cent of the eligible production costs. Alternatively, if they have minimal or no tax liability because their profits are low or non-existent, the difference will be paid out by the tax office. The aim of this tax relief is to boost games as a cultural asset in Germany, substantially increase the attractiveness of Germany again as a development location for games and enable more high-quality games from Germany to be developed. The proportion of games developed in Germany has continued to fall over recent years, not least as a result of the substantial state support received by games companies in the UK, France and the Scandinavian countries. The model of tax-based funding was presented by tax law expert Dr Philipp Thiele from the law firm Osborne Clarke. The proposal was then discussed by Saskia Esken MdB, Deputy Spokeswoman on digital policy of the SPD group in the German parliament, and the Spokeswoman on media policy of the Bündnis 90/Die Grünen group in the German parliament, Tabea Rößner MdB, in conjunction with Benedikt Grindel, Studio Manager at the games developer Blue Byte, and BIU Managing Director Dr Maximilian Schenk. The debate was chaired by rbb TV host Daniel Finger.
 
[quotation cite=”Tobias Harr, Board Spokesman for the BIU”]‘The Parliamentary Evening showed that the BIU’s draft model for tax-based games funding is providing key impetus to the question of how this negative development of the German games industry can be stopped and even turned around. Our proposal generated some very positive discussions. Now we need to make sure that the debate we’ve started keeps going throughout the election year 2017.’[/quotation]‘Computer and video games from Germany attract little attention both in Germany and internationally. Given that the medium is becoming ever more significant, this is an extremely problematic development for Germany as a location for cultural and creative industries,’ says Tobias Haar, Board Spokesman for the BIU. ‘The Parliamentary Evening showed that the BIU’s draft model for tax-based games funding is providing key impetus to the question of how this negative development of the German games industry can be stopped and even turned around. Our proposal generated some very positive discussions. Now we need to make sure that the debate we’ve started keeps going throughout the election year 2017.’
 
The BIU proposal for a tax-based funding model for games from Germany, including revisions after the feedback following the Parliamentary Evening, can be found at https://www.game.de/en/positions/a-tax-based-funding-model-for-computer-and-video-games-from-germany/

Comments on the Parliamentary Evening ‘Talk@BIU: New ways of cultural funding – a tax-based funding model for games from Germany’

Saskia Esken MdB, Deputy Spokeswoman on digital policy of the SPD group in the German parliament: ‘Computer and video games are a very diverse medium whose cultural significance extends well beyond pure entertainment and now contributes to learning, education and sporting competition. Our goal must be to develop more games in Germany again so that the innovative companies in our country can also share in the economic potential of the sector. By drawing up a concrete proposal about how the cultural promotion of games from Germany may be structured, the industry has made an important contribution to the much-needed debate on what funding instruments are the right ones and how we can manage these with experts in cultural promotion, business development and finance.’
 
Tabea Rößner MdB, Spokeswoman on media policy of the Bündnis 90/Die Grünen group in the German parliament: ‘Computer and video games are an important cultural medium that we have been working to have recognised for a long time. For that reason, we welcome the initiative of the BIU in making a proposal of its own for the cultural promotion of games from Germany. The games industry offers huge potential for Germany as a location for the cultural and creative industries, and we need to leverage this in a more concerted manner in future.’

About the BIU

The BIU, the German Games Industry Association, is the association of the German computer and video games industry. Its 26 members are developers, publishers and suppliers of digital games. Together, they represent over 85 per cent of the German market. The BIU is, for example, the organiser of gamescom. As an expert partner for media and for political and social institutions, the BIU answers all questions on the topic of digital games.

Press contact:

Martin Puppe
BIU – Bundesverband Interaktive Unterhaltungssoftware e. V.
Charlottenstraße 62
10117 Berlin, Germany
Tel.: +49 (0)30 2408779-20
Fax: +49 (0)30 2408779-11
Email: puppe@biu-online.de
game.de
Twitter: @game_eV
Facebook.com/BIUeV

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