Rockstar Games Receives $77 Million Tax Credit For RDR2, GTA 6

Ever wondered how do big video game companies like Rockstar Games keep developing new games despite paying so many taxes? Well, they manage it by actually not paying the taxes. Confused? Don’t be, just read ahead to know the complete story.

Tax Relief

Rockstar Game is part of the Video Games Tax Relief. It is a relief fund for game developers that is run by the UK Government itself. It is a relief fund exclusive to UK based game companies and as Rockstar is a UK based game company, its games qualify for the tax relief. Under the VGTR, Rockstar Game receive tax relief for developing its games. As a result of this, RockstarGames is able to lower the development cost of a game significantly. To be precise, because of VGTR the cost of production of a game reduces to about 20%.

Now under VGTR, RockstarGames have received $77 million for developing its two upcoming games the RDR2 and GTA 6. Well technically the fund is not for these games but for the games that were developed in 2019 and 2020. To put it simply Rockstar Games paid their taxes as usual and got back the $77 million for being a part of VGTR. The amount is about 50% of the total money given to game developers under the VGTR. The fact that such a large portion of what Rockstar Games pays as taxes comes back to them in the form of relief is what makes it possible for the company to keep making games like RDR2 and GTA 6, games that require a lot of money to make given how good the game physics and the game engines are. Don’t you think other countries should have similar reliefs for game developers?

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