The Irish gaming industry welcomed Minister Pascal Donohue’s announcement in his 7 October 2025 Budget speech that as part of this budget cycle, significant updates to the digital games tax credit will be introduced.
The key Budget announcements were:
- 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.
Finance Bill 2025 was published on 16 October 2025 and provides the detail on how these changes will be implemented, but also includes some changes relating to the mechanics of the incentive which were not expressly mentioned in Budget 2026 materials. The changes are subject to EU State aid approval and a commencement order by the Minister for Finance.
Post-release content
Previously, only costs incurred in advance of completion could be considered qualifying expenditure. The new rules allow a digital games development company to make an application to the Department of Culture, Communications and Sport for a post-release extension to an interim certification. Where a post-release extension of an interim certificate extension is granted, ‘Completion’ will be triggered on the earlier of:
- The last date on which post-release digital content is made available to public before application for a final certificate is made, or
- In the case of a commissioned game development, the last day of delivery of post-release digital content to the commissioning party before application for final certification.
‘Post-release digital content’ of a qualifying digital game is defined as digital content developed following the date of release, which is in addition to and for incorporation into the game. Additional information is expected to be provided in supplementary regulations in due course.
Date of release is defined as the date the game is first made available to the public. In the case of a game development which does not seek a post-release extension of an interim certificate, there are not changes to the existing definition of date of completion.
Application for cultural certification
Previously, a digital games development company had the option of making an application for final certification from the Department of Culture, Communications and Sport only. However, the changes set out in the Finance Bill remove the availability of this option and companies will now be required to make an application for both an interim certificate, and a final certificate upon completion of the project in respect of games which commence development after the new rules are signed into law in due course. These changes apply irrespective of whether the digital games development company intends to make a claim for expenditure on post-release content.
It has been indicated that games which have commenced development prior to this, and which have not received an interim certificate, will still be eligible to apply on a final certificate only basis which is a welcome clarification.
Qualifying expenditure – Irish branch limitations
In order to qualify for the incentive, the legislation currently requires a digital games development company to be either a) an Irish tax resident company trading in Ireland, or b) an EEA tax resident company trading in Ireland through an Irish branch. The rules have been tightened significantly, and the definition of ‘qualifying expenditure’ has been updated such that only expenditure incurred by the Irish trade, that is deductible for Irish corporation tax purposes, can be considered qualifying expenditure.
Unauthorised claims
A four-year time limit will apply for Revenue to raise tax assessments for unauthorised claims where an interim certificate expires, without a final certificate being requested and issued by the Department of Culture, Communications and Sport. The limit will be four years from the end of the accounting period in which the interim certificate is first treated as never having had effect.
In addition, provisions have been included to allow claims made for expenditure to the point of release to stand in certain circumstances, where a post-release extension of an interim certificate is received and subsequently deemed as never having had effect.
Saffery is the leading expert on Ireland’s digital games corporation tax credit. If you have any questions, please get in touch with Peter Boyle.
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