Advocacy Update: Significant Progress on Game Dev Tax Policy — NZGDA | Buobe
Advocacy Update: Significant Progress on Game Dev Tax Policy — NZGDA
Buobe IA context · why it matters
Draft rules forcing game development costs into a strict capitalisation model — Studios may face significant initial tax bills, disrupting cash flow.
Potential phantom profit due to launch spike revenue not fully offsetting development costs — Could undermine the effectiveness of the 20% Game Development Sector Rebate.
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NZGDA's advocacy could influence Inland Revenue to revise the proposed rules for a more balanced approach.
Late last year, Inland Revenue released a consultation document proposing major changes to the tax treatment of software development costs across New Zealand. For game studios, the implications of these draft rules were severe.
