Development of Video Games with a Cultural Dimension

This incentive is intended to limited liability companies whose main activity is the development of video games with a cultural dimension for profit making purposes. Most importantly, the company shall be liable to pay tax in Malta in order to pass the eligibility test.

This incentive is applicable since 31st December 2020.

Eligible Enterprises

Undertakings can be involved in the following main trading activities being;

  • The design, production and testing of the video game
  • Actively involved in the decision making process during the design, production and testing of the video game
  • Directly negotiates contracts and pays for rights in connection to the video game created.
Eligible Video Games

Part of the eligibility criteria involves a cultural test which includes a points-based test to assess the cultural content which has been included in the tested video game. The applicant must score a minimum of 16 points from the 30 points cultural test in order to be approved for this incentive. Another important criteria is that the video game shall be originally created and not a recreation of an existing story and baseline.

The guidelines point out that any reference to the below themes in the created video game, would result in the applicant being rejected from the incentive grant. The themes being:

  • Discrimination related to race, gender or religious belief
  • Extreme violence
  • Pornography
  • Gambling
  • Excessive consumption of alcohol
  • Smoking
  • Illegal activities
  • Promotional nature of a particular company or campaign (excluding product placement)

This tax credit grant is capped at a maximum of EUR 200,000 over 3 consecutive years and shall also be capped up to 30% of qualifying costs incurred in the development of the video game. The qualifying expenditure includes:

  • Wage costs limited to the hours dedicated to the development and production of the cultural game
  • Subcontracting wages related to support services for enhancing and completing the product
  • Cost of accessing third party content or copyright material required to be included as part of the game.

How can Erremme help you?

Erremme can guide you through the application process by completing the relevant application forms, business plans and other documents. The admission process is managed and regulated by the Malta Enterprise and these Incentive Guidelines will remain active until 31st December 2020.

For more information contact us on

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