SA Film & TV Production and Co-production (SA Film)

SA Film & TV Production and Co-production (SA Film)

Objectives

The objectives of the South African Film and Television Co-Production Incentive are to support official co-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

Benefits:

  • Incentive is calculated at thirty-five percent (35%) of Qualifying South African Production Expenditure (QSAPE).
  • An additional five percent (5%) of QSAPE is provided for productions hiring at least twenty percent (20%) of Black South African citizens as head of departments (HODs) and
  • Procurement of at least thirty percent (30%) of the QSAPE from fifty-one percent (51%) South African black-owned entities which have been operating for at least a period of one (1) year.
  • The incentive programme offers a reimbursable grant to the maximum of R25 million per qualifying project.

PROJECT ELIGIBILITY REQUIREMENTS

The South African Film and Television Co-Production Incentive is available to projects that have been certified as co-productions by the competent authority:

  • Productions must have a minimum QSAPE of R2.5 million 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 fifty percent (50%) of the principal photography must be filmed in South Africa;
  • At least fourteen (14) calendar days of the principal photography must be filmed in South Africa; and
  • For productions with a minimum QSAPE of R50 million, the fifty percent (50%) and fourteen (14) calendar days’ requirements may be waived and such discretion will take into account the budgetary implications of the decision made.
  • 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.
  • The production company must achieve at least a level three (3) B-BBEE contributor status in terms of the B-BBEE Codes of Good Practice;
  • The SPCV must achieve at least a level four (4) B-BBEE contributor status in terms of the B-BBEE Codes of Good Practice.

Mandatory conditions 

  • The applicant must be a South African production company.
  • Use of multiple subsidiaries and connected companies to be regarded as production companies is not allowed.
  • 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.
  • If the applicant chooses to commence with the project prior to receiving an outcome, the project must be fully funded. Should such projects receive an approval, the project will not be eligible for milestone payments;
  • The applicant must have secured at least twenty-five percent (25%) of the total production budget (TPE) which should be fully committed at application stage;
  • Where the project is not fully funded, the applicant must have secured at least twenty five percent (25%) 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 the 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 provide the dtic with a financial plan and signed contract from financier(s);
  • 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 third party companies must be settled directly from the primary bank account of the established SPVC.

Application Forms and Guidelines:

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