Croatian Gaming Companies Protest US-Croatia Double Taxation

Lauren Simmonds

As Novac writes on the 22nd of August, 2019, the double taxation between the USA and Croatia cuts sales revenue by a significant 30 percent over in the US. This was rightfully complained about by Roman Ribarić, the CEO of Abest, the company behind gaming studio Croteam, which created the most popular Croatian video game, Serious Sam. Abest, along with eight other home gaming studios, is currently participating in the world’s largest digital entertainment fair Gamescom in Cologne, Germany.

From that location, they warned that Croatia is the only European Union member state which still has no double taxation agreement with the United States of America, which makes more than twrenty Croatian gaming companies, which are almost 100 percent exporters not only less competitive on the world market, but have significantly lower revenues.

”The biggest challenge is that we don’t have a double tax treaty with the US. This is a problem for every studio, especially for young people who want to start doing something and get the most out of their income,” said Andrej Levenski, the CEO of Pandora studio (Gamepires), the creator of the popular SCUM computer game, which has sold an incredible 1.5 million copies worldwide.

Just like Gamepires, Exordium Games exports almost one hundred percent of its products, meaning that it generates the bulk of its sales abroad through digital game distribution platforms. Until recently, they were focused on the computer market, but with the help of an American publisher, their latest Bear With Me title was placed on all consoles mobile platforms. The last Pottery mobile game was played by over sixteen million players in June and July 2019.

Exordium Games’ CEO Andrej Kovačević said that this was their fifth appearance at Gamescom.

”The Croatian stand is getting better and better every year, and the continued presence of local creators is a great testament to the seriousness of the Croatian scene in the international context,” said Kovačević.

For the sixth consecutive year, the Croatian Chamber of Commerce (HGK) has been organising the presence of the Croatian computer game industry at the Cologne-based fair, which brings together over one thousand exhibitors.

This year, Digital Adventure, Twice Two, Intercorona, Iron Ward, Exordium Games, Pandora studio, Abest, Games Revolted and Soap Interactive, all of which are known worldwide for 2×2, Reboot, LGM Games, Ironward, Exordium Games brands, Gamepires, Croteam, Games Revolted and Soap Interactive, were showcasing Croatian innovation in Germany.

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