South Africa offers two incentive programmes in the form of cash rebates on qualifying expenditure in the country. The first is for films taking advantage of SA’s world class production environment. The second is for films willing to offer co-ownership to South African filmmakers.
1. The Foreign Film and Television Production and Post-Production Incentive (Foreign Film)
For Foreign-owned qualifying productions and South African qualifying post-production work with:
• QSAPE of R12 million (US$1 million) and above, provided that at least 50% of the principal photography schedule is filmed in South Africa, for a minimum of four weeks.
• QSAPPE of R1.5 million and above, 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.
Benefits:
• Shooting on location in South Africa, the incentive will be calculated as 20% of QSAPE. A cap of R50 million will be applicable.
• Shooting on location in South Africa and conducting post-production with a Qualifying South African Post-Production Expenditure (QSAPPE) of R1.5 million in South Africa, the incentive will be calculated at 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 R3 million and above in South Africa, the incentive will be calculated as 25% of QSAPE and QSAPPE (an additional 5%, cumulative 25%).
• Foreign post-production with QSAPPE of R1.5 million, the incentive is calculated at 22,5% of QSAPPE.
• Foreign post-production with QSAPPE of R3 million and above the incentive is calculated at 25% of QSAPPE.
2. The SA Film & TV Production and Co-production (South African Films)
• 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(ies) 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 incentive is available only to qualifying South African productions with a total production budget of R2.5 million and above.
Benefits:
• The rebate is calculated as 35% of the first R6 million of QSAPE and 25% of the QSAPE on amounts above R6 million.
For South African films, there are also possible funding opportunities from the IDC and tax benefits offered by SARS. Please speak to us for information on how these opportunities can be applied to your production.