DEPARTMENT OF TRADE & INDUSTRY
The DTI offers industry-specific incentives to encourage local content generation as well as attracting inter-national productions.
Foreign Film, TV Production & Post-Prod Incentive
Designed to attract large-budget films, television series and post-production contracts, the incentive creates employment, enhances South Africa’s international profile and increases its creative and technical skills base.
A 20% tax reduction on production expenditure for foreign productions filmed in South Africa with a budget of R12 million or above.
A 22.5% to 25% reduction if filming and post-production take place in South Africa. Post-production expenditure must be R1,5 million or above to qualify.
Film, TV Production & Co-Production Incentive
A rebate of 35% for the first R6-million spent, and 25% for the remainder of production expenditure, uncapped.
INDUSTRIAL DEVELOPMENT CORPORATION
A state-owned development financing institution, the IDC seeks to create a sustainable South African film industry. Its Media and Motion Picture Strategic Business Unit funds film, broadcast and post-production projects. Capital assistance is available in the form of loan finance, with a cap of 49% per project.
Equity Investment, involving direct investment into a project in the form of ordinary and/or preference equity ownership and participation of up to 49% (minority interest), as the IDC does not seek control or direct management participation.
Commercial Loan/Debt Finance. Term loans up to six years are structured to fit the business cash flow profile (i.e. asset-based finance and working capital). Owners' contribution required for adequate financial structuring of the project.
Venture Loans (quasi-equity). Minority interest in high-risk ventures with high financial returns and developmental impact.
NATIONAL FILM & VIDEO FOUNDATION
The NFVF offers funding for films and documentaries produced in South Africa through repayable loans or grants. The organisation is geared to assist South African production companies engaged in foreign co-productions.
Projects of national interest, focus on local content and empowerment or training components are of particular interest. The NFVF also awards development funding, marketing and distribution funding and assists filmmakers in representing and launching their products internationally.
Regional Film Commissions
Four regional bodies in the main provinces of South Africa offer a range of advice and assistance. From funding and finance facilitation, negotiation of co-productions, project partnerships with broadcasters to availing and streamlining shoot locations.
Cape Film Commission (Cape Town)
Gauteng Film Commission (Johannesburg)
Durban Film Office (Durban)
Eastern Cape (East London)
The South African Revenue Service, through Section 24F of the Income Tax Act, grants a deduction of the production cost of a film to the film owner. It excludes any deductions for production costs under any other provisions of the Income Tax Act, providing for a film allowance instead. Section 24F also provides that a film owner may deduct a film allowance from his income.