A fund to support developers needs to be established — RVIA has submitted its proposals to the State Duma regarding the draft law on games
Proposals continue to flow into the State Duma on how to refine the high-profile draft law "On the Activities for the Development and Distribution of Video Games in the Russian Federation." Recently, the Organization for the Development of the Video Game Industry (ODVG) sent their amendments to the deputies.
"Smuta"
The ODVG focused on the part of the draft law concerning support for Russian gaming companies. The association proposed expanding this section.
"The draft law is positioned as a general framework for regulating the video game industry. However, it approaches issues of industry support and establishing a foundation for its development and global competition very formally, limiting itself to general statements about what is already being done by the Government, regions, and public organizations. In this context, we would like to propose several support measures for the industry, which, in our opinion, if incorporated into the draft law, could significantly shift its focus toward industry development," the ODVG stated.
What the ODVG specifically proposes:
- establish a state fund for the development of the video game industry that will provide grants and investments to developers in Russia;
- exempt Russian developers from paying VAT on game sales in the domestic market for ten years. This benefit exists currently but is not enshrined in legislation and could be revoked at any time;
- exempt Russian developers from paying profit tax for five years;
- reduce social insurance contributions for gaming companies or initiate a refund of these contributions;
- require organizers of esports tournaments held in Russia to feature an equal number of similar disciplines in Russian games as in foreign ones, especially if tournaments are partly funded by the state budget. The prize fund for these disciplines should be comparable.
In December 2024, the ODVG stated that it considers the draft law too stringent and even harmful to the industry. In their opinion, if the initiative is adopted in its current form, the industry will be set back by years.