Global Trade Alert

The Government of Quebec cut the tax subsidies on game software development firms located in the province. An estimated 130 studios had enjoyed tax credit on salaries as high as 37.5 per cent. Under the new policy, tax relief will fall to 30 per cent if the title is produced in French, and to 24 per cent in another language, including English. The cut in subsidies took effect on June 5, 2014. The international location decisions of firms in this sector are said to be influenced by such subsidies.