The South African Department of Trade and Industry (DTI) has developed
incentives to attract international investment and production as well as to assist
South African filmmakers in developing local content.
The Foreign Film and Television Production and Post-Production Incentive is
geared towards increasing skills, creativity and employment opportunities within
the local film industry by promoting the country as a valuable production
destination to international players.
The Foreign Film and Television Production and Post-Production Incentive offers:
• Shooting on location in South Africa, the incentive is 20% of the Qualifying
South African Production Expenditure (QSAPE) – there is no cap for this
incentive
• Shooting on location in South Africa and conducting post-production with a
Qualifying SA Post-Production Expenditure (QSAPPE) in SA of R1.5m, the
incentive is 22,5% of QSAPE and QSAPPE (an additional 2,5%, cumulative
22,5%)
• Shooting on location in South Africa and conducting post-production with a
QSAPPE of R3m and more in South Africa, the incentive is 25% of QSAPE and QSAPPE (an additional 5%, cumulative 25%)
• Foreign post-production with QSAPPE of R1.5m, the incentive is 22,5% of
QSAPPE
• Foreign post-production with QSAPPE of R3m and more the incentive is
25% of QSAPPE
Incentives are granted to foreign-owned qualifying productions and South
African qualifying post-production work where:
• QSAPE is R12m and more, provided that at least 50% of the principal
photography schedule is filmed in South Africa, for a minimum of four weeks
• QSAPPE is R1.5m and more, provided that 100% of the post-production is
conducted in South Africa, for a minimum of two weeks
• An applicant must be a Special Purpose Corporate Vehicle (SPCV)
incorporated in the Republic of South Africa solely for the purpose of the
production and/or post-production of the film or television project
• An applicant must be the entity responsible for all activities involved in the
production and/or post-production in South Africa and must have access to full
financial information for the whole production and post-production
worldwide
• Only one entity per production and/or post-production for film, animation
and television drama or documentary series is eligible for the incentive
• The applicant must comply fully with its obligations in terms of the Legal
Deposit Act 54 of 1997
• The DTI requires both the SPV and the parent company of the SPV to
achieve a minimum level of compliance with regard to Broad-based Black
Economic Empowerment (B-BBEE). This is determined in accordance with a
points scoring system and is subject to independent verification
• The final application must include a DVD of the final film, including the end-crawl (closing credits)
• The DTI requires a credit in the end-crawl, which must include its official
logo
• A feature film must be no less than 90 minutes (including end credits) and a
television series may be no more than 13 episodes of one hour each
The DTI only pays the rebate upon submission of the final application, which may
only take place upon completion of the production (completion is defined as the
date upon which the project is ready for distribution, exhibition or broadcast).
The main focus of the South African Local Production and Post-Production
Incentive is to encourage the creation of local content and to increase
employment opportunities in the country.
The rebate is calculated as 35% of the first R6m of QSAPE and 25% of the
QSAPE on amounts above R6m.
South African Local Production and Post-Production Incentives are granted
to productions which:
• Qualify as a South African film or as a South African co-production under an
official co-production treaty. Coproduction certification is administered by the
National Film and Video Foundation (NFVF)
• Special Purpose Corporate Vehicles (SPCV) incorporated in the Republic of
South Africa solely for the purpose of the production of the film or television
project
• The SPCV and parent company or companies must have a majority of South
African shareholders of whom at least one shareholder must play an active role
in the production and be accredited in that role
• An applicant must be the entity responsible for all activities involved in
making the production in South Africa and must have access to full financial
information for the whole production
• Only one film production, television drama or documentary series per entity
is eligible for the incentive
• The following formats are eligible: feature films, tele-movies, television
drama series, documentaries and animation. The DTI is in the process of adding
digital content and gaming
• The incentive is available only to qualifying South African productions with a
total production budget of R2.5m and more. However, the DTI is in the process
of making the rebate available for projects that do not undertake shooting in
South Africa but undertake a certain level of post-production within South Africa.
If the film is not bonded, the DTI only pays the rebate upon submission of
the Final Application, which may only take place upon completion of the
production (completion is defined as the date upon which the project is ready for
distribution / exhibition / broadcast).
If the film is bonded the DTI will pay the rebate at milestones during the
production process, as follows:
• % of rebate Milestone
• 20% Confirmation of Completion Bond
• 20% Start of principal photography
• 20% Completion of principle photography
• 20% Commencement of post-production
• 20% Submission of the Final Application
DTI contacts
Wendy Mphahlele: WMphahlele@thedti.gov.za +27 (12) 394 1876
Rudi Siefert: RSiefert@thedti.gov.za +27 (12) 394 1270
Visit the DTI website for a full list of
application forms and guidelines.
