Editorial Team – [2023] 148 taxmann.com 183 (Article)
World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.
1. Australia announces ‘Digital Games Tax Offset’ to promote the digital games industry
The Australian Taxation Office (ATO) released a statement on 7th March 2023 regarding the impending legislation for the Digital Games Tax Offset (DGTO), which was initially announced as part of the Budget 2021-22.
As part of the Digital Economy Strategy, the Government announced that it would introduce a DGTO to strengthen the digital games industry in Australia, expand employment opportunities for digital and creative talent, enhance the industry’s international competitiveness, and make Australia an attractive destination for foreign investment.
The Digital Games Tax Offset is a refundable tax offset of an amount that is 30% of a Company’s qualifying Australian Development expenditure on:
(a) completing a new digital game;
(b) porting a completed digital game to a new platform; and
(c) ongoing development of completed digital games during an income year
The maximum amount of the offset that a company (or a group of connected or affiliated companies) can claim per income year is $20 million. This cap would be reached with eligible expenses of around $66.7 million.
To be eligible for the offset, the applicant must be a company that falls under one of two categories – an Australian tax resident or a foreign tax resident with a permanent establishment in Australia.
Source: Release dated 7th March 2023
Click Here To Read The Full Article
The post [World Tax News] Australia introduces tax incentives for the digital games industry and more appeared first on Taxmann Blog.