Foreign Film and Television Production and Post-Production Incentive (Foreign Film)

Objectives:

The objectives of the Foreign Film and Television Production and Post-Production Incentive, are to attract foreign film and television productions and post-productions that will contribute towards employment creation, local procurement and enhance the international profile of the South African film and television industry while increasing the country’s creative and technical skills base.

The incentive is designed to address the historical imbalances in the sector and ensure diversity and inclusion at all levels of production including ownership and control.

Production and post-production

  • Shooting on location in South Africa, the incentive will be calculated at 25% of Qualifying South African Production Expenditure (QSAPE), with a cap of R25 million.
  • An additional incentive of 5% of QSAPE is provided for productions shooting and conducting post-production in South Africa, and utilising the services of a black-owned service company.

Post-production

  • Conducting post-production in South Africa, the incentive is calculated at 25% QSAPPE
  • An additional 2.5% of Qualifying South African Post-Production Expenditure (QSAPPE) is provided for spending at least R10 million of post-production budget in South Africa
  • An additional five percent (5%) is provided for spending at least R15 million of postproduction budget in South Africa.

PROJECT ELIGIBILITY REQUIREMENTS

The Foreign Film and Television Production and Post-Production Incentive is available to foreign-owned qualifying productions and post-productions as follows:

  • A minimum of R15 million for all qualifying production formats;
  • At least fifty percent (50%) of the principal photography must be filmed in South Africa;
  • At least twenty-one (21) calendar days of the principal photography must be filmed in South Africa; and
  • For productions with a minimum QSAPE of R100 million, the fifty percent (50%) and twenty-one (21) calendar days’ requirements may be waived and such discretion will take into account the budgetary implications of the decision made.
  • The production company must achieve at least level three (3) B-BBEE contributor status and
  • SPCV must achieve at least a level four (4) B-BBEE contributor status in terms of the B-BBEE in terms of the B-BBEE Codes of Good Practice;

Post-production

The QSAPPE must be at least R1.5 million for all qualifying post-production activities:

  • The post-production activities must be carried out in South Africa for at least 14 calendar days, this requirement is waived provided that a 100% of the post-production is conducted in South Africa.
  • Applicant must have secured at least 80% of the total budget.
  • The production company must achieve at least level three (3) B-BBEE contributor status and
  • SPCV must achieve at least a level four (4) B-BBEE contributor status in terms of the B-BBEE in terms of the B-BBEE Codes of Good Practice;

Mandatory conditions 

  • The applicant must be a South African production company.
  • 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 prior to commencement of the project anywhere in the world. If a project commences prior to receiving an outcome from the dtic, the applicant would have done so at their own risk.
  • Use of multiple subsidiaries to be regarded as production companies is not allowed.
  • Where the project is not fully funded, the applicant must have secured at least eighty percent (80%) of the total production budget at application stage; supported by firm commitment such as concluded agreements and ring-fenced funds in the Special Purpose Corporate Vehicle (SPCV) Bank Account such applications must receive an outcome before commencing with principal photography.
  • Prior to commencing with principal photography the applicant must have secured 100% of the budget following the grant awarding decision by the dtic and such proof must be submitted.
  • 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 applicant must register a SPCV incorporated in the Republic of South Africa solely dedicated to the production of the film or television project to participate in this incentive programme. The SPCV must be wholly owned by the applicant.
  • The qualifying expenditure and payments made to the third party companies must be settled directly from the primary bank account of the established special purpose corporate vehicle.

Application Forms and Guidelines:

Notice pertaining to the processing of personal information

Contact details:

Applications:

Mr Eliya Ndou ENdou@thedtic.gov.za  +27 12 394 1748
Mpho Nkuna MNkuna@thedtic.gov.za  +27 12 394 1805

Claims:

Nesi Masuku NMasuku@thedtic.gov.za  +27 12 394 1065
Michelle Mochochoko  MMochochoko@thedti.gov.za +27 12 394 3456
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