Russia Plans to Boost Video Game Exports With New Incentives
Game developers will gain access to tax breaks previously reserved for IT companies as part of a broader industry push
Russia’s Ministry of Digital Development has prepared a package of measures aimed at supporting the domestic video game industry. Minister Maksut Shadaev said developers will be able to use tax incentives that were previously available only to IT companies.
What Is Game Development
Game development refers to the full-cycle creation of video games, from concept to release and post-launch support. The process includes programming, design, graphics, animation, sound, testing, and marketing. The global video game market exceeds $200 billion and continues to grow. Unlike standard software, games must not only function but also engage users emotionally, requiring a mix of creativity, engineering innovation, and continuous data analysis.
Competing Globally
One of the main challenges for developers is processing payments from international users. To do that, companies often register intellectual property under foreign legal entities, which has historically limited their access to Russian tax benefits.
The ministry now proposes allowing such games to be included in the national software registry, provided that versions for Russian users are hosted and maintained on domestic IT infrastructure. This would enable developers to qualify for VAT exemptions.
Additional Incentives
Accredited IT companies in Russia currently benefit from several tax advantages. The corporate income tax rate is set at 5 percent through 2030, and social contributions are reduced. Employees also have access to grant programs and subsidized mortgage schemes.
These benefits are now expected to extend to video game developers. The policy package also includes measures to stimulate new projects, simplify exports, and promote Russian-made games in international markets.
