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Ireland Offers Tax Holiday to Gaming Industry

In an effort to stimulate the country's economy, Ireland may be luring Scottish developers.

According to the Herald Scotland, Ireland may be planning five-year tax holidays for game developers in an effort to boost the local economy. This incentive is proving to be attractive to developers based in Scotland, who find the UK's restrictions on their industry frustrating.

Most of Scotland's game industry is centered in the city of Dundee, which is home to approximately fifteen developers in total, most notably Rockstar North, Ruffian, and Realtime Worlds. The Scottish industry employs 700 workers and makes £50 million annually.

Ireland is not the only appealing relocation possibility for Scotland, as Canada also offers tax incentives. However, the move from Ireland to Scotland would be less strenuous for the companies on basis of proximity alone. Colin Macdonald of Realtime Worlds stated, "Ireland is a lot closer to home than Canada, so Scottish policy-makers should regard it as a potentially serious threat."

Despite efforts to receive tax breaks from the UK government, the response has been negative. A representative from the UK government said that Ireland's incentives may in fact push the UK to change its attitude toward gaming tax breaks. "Until we have those powers we’ll continue to make the UK government aware of the implications for the Scottish gaming industry. We’ll also work with the industry to provide evidence of the impact."

Ireland's interest in Scotland's gaming industry is in an effort to stimulate the nation's own economy.


 

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