Film and Television Production Incentive grant in South Africa

The Film and Television Production Incentive was established to attract foreign-based film productions to shoot on location in South Africa and conduct post-production activities. It also supports official co-productions in the local film industry and contributes towards employment opportunities in South Africa. DTC can assist with accessing the Film and Television Production Incentive grant and the necessary developments thereof.

The Film and Television Production Incentive

The South African Government offers a package of incentives to promote its film and television production industry; one of which consists of the South African Film and Television Production Incentive.

The filming incentive is based on the concept of Qualifying South African Production Expenditure (QSAPE), which is defined as the production costs spent by the applicant on copyright and goods owned, or facilities and services provided by South African companies and individuals.

The South African Film and Television Production Incentive is available to qualifying South African productions and official treaty co-productions with total production budgets of R2.5 million and above.

Benefits of the Film and Television Production Incentive

The rebate is calculated as 35% of QSAPE; and
An additional 5% of Qualifying South African Production Expenditure (QSAPE) is provided for productions hiring at least 30% of black South African citizens as HODs and procuring at least 30% of QSAPE from 51% South African black- owned entities which have been operating for at least a period of one year; with a cap of R50 million per project.

Eligibility criteria for the Film and Television Production Incentive

Productions must have a minimum QSAPE of R2.5 million (75%) for all qualifying production formats and a minimum of R500 000 for documentaries;
The applicant must submit a copy of the advance ruling at application stage for and a copy of the final ruling at claim stage;
At least 14 calendar days and 50% of principal photography must be filmed in South Africa; for productions with a minimum QSAPE of R50 million, this requirement may be waived;
The Director must be a South African citizen, unless the production requires the inclusion of an individual not covered by this clause, in which case approval may be given at the provisional approval stage;
The writer and producer credits include South African citizens, unless the production requires the inclusion of an individual not covered by this clause, in which case approval may be given at provisional approval stage (either exclusive or shared collaboration credits);
At least two highest-paid performers must be South African citizens, unless the production requires the inclusion of an individual who is not a South African citizen, in which case approval may be given at provisional certification stage;
The majority of the film’s HODs and key personnel must be South African citizens, unless the production requires the inclusion of an individual who is not a South African citizen, in which case approval may be given at provisional certification stage; and
The holding company and SPCV must achieve at least a level 3 and level 4 B-BBEE contributor status respectively, in terms of the B-BBEE Codes of Good Practice.

Eligible Format for the Film and Television Production Incentive:

Feature film;
Tele-movies;
Television drama series and mini-series;
Documentary, documentary series and documentary feature;
Animation; and
Digital Content and Video Gaming.

The following formats are not eligible:

Reality TV;
Discussion programme;
Current affairs;
News Advertising programme or commercial;
Panel programme;
Variety programme or a programme of a like nature;
Public events, including sports events;
Soapies;
Speculative projects;
A training or “how to” programme;
Mobile phone video gaming;
Films that fall within schedules 6, 7 or 10 of the South African Films and Publications Act 1996, as amended, are specifically not eligible for the rebate;
Commissioned projects by any broadcaster will not be eligible for this incentive;
Bundling is not allowed; and
The SPCV should not be owned and controlled by South African and foreign broadcasters.

General Conditions for the Film and Television Production Incentive grant

The applicant must procure a minimum of 20% of qualifying goods and services from entities which are 51% black-owned by South African citizens and have been operating for at least one year.
The applicant must complete and submit an application not early than forty-five (45) calendar days prior to the commencement of principal photography.
The applicant must demonstrate that they adhere to an industry specific Code of Professional Standards that includes sexual harassment and health and safety protocols.
The principal photography must not commence until an approval letter has been received from the dti.

DTC is dedicated to the provision of professional corporate services characterised by independent and creative thinking to maintain our leadership position and credible reputation.