How to obtain funds for the production or development of computer games?

  • By Elżbieta Kostka
    • 30 Oct, 2022
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Computer games are a dynamically developing sector of the IT industry. Poland is currently one of the leaders in the production of games for all types of media. According to the report “The Game Industry of Poland 2021”, there are over 20 million players in Poland, most of them are adults.
However, only in 2020, revenues from game production in Poland amounted to EUR 969 million.

The gaming industry is currently the most profitable entertainment industry in the world. Game producers and distributors currently earn more than filmmakers or musicians.

It is also one of the few industries that did not collapse by the COVID-19 pandemic, and even developed at that time. Considering the fact that entertainment in the virtual world is becoming more and more popular, the further development of this industry and the increase in profits from the sale of games are certain. At the same time, innovative IT projects also require significant investment. However, part of the costs incurred for such investments can be recovered.

The computer games industry and the financing of innovative activities

Research and development activities are included in most activities carried out by programmers and developers. It is always a response to the market demand and the activity of the competition. The development of graphics or game plots is a must to keep up with trends and customer expectations. Racing in applying and creating new ideas drives competition between the largest studios. Competition drives development. Video game production is much more than just creating entertainment. Game producers invest in numerous improvements and talented employees to offer their customers unique products and experiences.

There is a wide range of innovative technologies that developers use in their daily work. In addition to being an indispensable work tool, these technologies can also be a way to obtain financing for ambitious projects through innovation tax reliefs.

The technologies listed below qualify for significant and attractive tax reliefs:

  • Programming activities in AR and VR,
  • Artificial intelligence,
  • Computer generated images,
  • Virtual reality,
  • Augmented Reality,
  • Cloud games,
  • Interception of traffic
  • Development of new machine learning algorithms or neural networks in connection with the development of video games,
  • Sound engineering in the video game industry,
  • Image processing and reconstruction (eg 3D imaging for feature recognition).


By implementing these solutions in their products and services, companies creating games gain a clear potential both for the development of the offer and the qualification of their activities for research and development tax relief. In this way, they can count on a significant financing of the company without incurring additional, production-related costs. Financing the company through tax reliefs is a significant financial support for the activities carried out on a daily basis. Acquiring such financing, however, requires skillful identification of development activities and related eligible costs. This is the domain of experts who know the IT industry and have successfully carried out many tax relief projects in IT. Innovative funds belong to companies from the IT industry.

The question is, are these companies getting the tangible benefits they deserve?

R&D tax credit

Discover how leyton can help you claim back your R&D tax credit

How can R&D relief help finance challenges in the IT industry?

Research and development relief by significantly reducing income tax allows you to obtain funds for further projects while investing in offering customers completely new experiences. Taking advantage of the discount does not require any additional costs from companies. It is enough for IT companies to do their job – develop their offer and invest in it. You can thus create a kind of closed circle. The costs allocated to the creation of new solutions can be deducted under the R&D tax credit, and then allocated to new projects again.

This requires the knowledge and experience of specialists who know not only the mechanisms of tax reliefs and tax law, but also all the IT industry. It is often the nuances that affect the possibility of considering a given cost as eligible.

If you want to find out how development projects in your company can turn into real savings, contact our experts who have already completed over 400 successful R&D relief settlements.

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    Author

    Elżbieta Kostka

    Client Business Partner

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