Budget 2026 was delivered by Ministers Paschal Donohoe and Jack Chambers to the Irish Dáil on 7 October 2025.
The Budget included announcements pertaining to the Irish film and TV tax credit and the digital gaming tax credit.
Section 481 – VFX enhancements
An increased 40% tax credit rate has been announced for certain productions that incur a minimum of €1 million of eligible Irish expenditure on relevant visual effects work. The increased rate will be available on up to €10 million of eligible expenditure per project.
A specific measure for the VFX sector was signalled as part of last year’s Budget announcements, and it’s very welcome to see the government following-up on its promises to the industry. Additional information on the operation of this enhancement will be available when Finance Act 2025 is published in the coming weeks.
This enhanced measure is subject to EU approval.
Section 481A – digital games tax credit
Minister Donohoe announced the following changes to the Digital Games Corporation Tax Credit:
- The sunset period for the incentive has been extended to 31 December 2031, and
- Work on certain Post-Release Content will now qualify for the incentive for up to three years post-release.
It’s very positive to see the government has taken on board direct feedback from the industry on the limitations of the current incentive and these measures increase the competitiveness of the Digital Games Corporation Tax Credit. Additional information on the operation of these changes will be available when Finance Act 2025 is published in the coming weeks.
These updates to the operation of the relief are subject to EU approval.
If you have any questions relating to the Budget announcements, please get in touch with Sinead McHugh.
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