SHOOTING FILM OR TV IN THE SOUTH AFRICA… (Some of the basics you should know)

SHOOTING FILM OR TV IN THE SOUTH AFRICA… (Some of the basics you should know). All information is subject to change, please verify with the links provided.

Bruce Bisbey…please follow us at: https://dumbdogproductionsllc.blogspot.com

South Africa has a vibrant, growing film industry that is growing in reputation and is competitive internationally.

Local and foreign filmmakers are taking advantage of the country’s diverse, unique locations – as well as low production costs and favorable exchange rate, which make it cheaper to make a movie here than in Europe or the US.

Building on South Africa’s reputation for quality, creative film making, a string of successful big budget international productions have been filmed here, including Fury Road, the fourth Mad Max film; Blood Diamond with Leonardo DiCaprio; and Clint Eastwood’s Invictus.

With its multiethnic and multicultural population, spectacular landscapes, diverse and unique flora and fauna, South Africa offers multiple assets to filmmakers. The country also boasts an extensive production infrastructure and a deep and experienced crew base.

But most of all, a generous rebate of up to 25% on qualified spend sweetens the appeal and closes the deal for many producers from around the world.

The country’s two main production centers – Johannesburg and Cape Town – both offer unique advantages, including modern soundstages that can accommodate productions of many sizes.

In addition, English is the working language of South Africa’s filmmaking community. And while local currency – the South African rand – has fallen upon hard times of late, that works to the advantage of film and TV producers flocking in from overseas to avail themselves of local goods, labor, and services that are cheap by their at-home standards.

Specifically, the rebate can range from 20% to 24% on qualified South African expenditures. The minimum spend for film is 12 million rand, which is about $910,000.

For post-production, the minimum spend is 1.5 million rand, or about $114,000. Bonus rebates are available if post expenditures exceed that amount.

At least four weeks of shooting time is required to qualify.

Recent films shot in South Africa include “Friend Request” (2016), “Resident Evil: The Final Chapter” (2016), “The Brothers Grimsby” (2016), “Mad Max: Fury Road” (2015), “Avengers: Age of Ultron” (2015), and “Chappie” (2015).

TV projects shot there include “The Crown,” “Of Kings and Prophets,” and “Black Sails.”

Regional film commissions

The commissions offer a range of help and advice. The Gauteng Film Commission’s support programs, for example, include assistance with funding and finance facilitation, as well as negotiation of co-productions and partnership projects with broadcasters.

Cape Town Film Commission: www.capefilmcommission.co.za Cape Town Film Commission closed Feb 2016. They were are the only official Film Commission in South Africa and only one of three in Africa, as recognized by the Association of Film Commissioners International (AFCI).

Gauteng Film Commission: www.gautengfilm.org.za

Address: 56 Main Street              

Johannesburg  

Gauteng 2108 South Africa

Phone: +27 (0) 11 833 0409

Fax: +27 (0) 11 833 0282

Mobile: 4915783632218

Durban Film Commission: www.durbanfilmoffice.com

Address: 11th Floor, Rennies House

41 Victoria Embankment

P.O. Box 5856

Durban 4000, South Africa

Phone: +27 (0) 31 311 4243

Kwazulu-Natal Film Commission: www.olffi.com

Address: 115 Musgrave Rd, Musgrave, Durban, 4001

Phone: +27 (0) 31 325 0200

SOUTH AFRICAN FILM FESTIVALS AND MARKETS

• AFDA Experimental Festival
• Bokeh South African International Fashion Film Festival
• Cape Town International Animation Festival
• DISCOP Africa Johannesburg
• Durban FilmMart
• Durban International Film Festival
• Encounters South African International Documentary Festival
• Indie Karoo Film Festival
• Jozi Film Festival
• Mzansi Women Film Festival
• Silwerskerm Film Festival
• South African Eco Film Festival
• Wavescape Surf Film Festival

PRODUCTION COMPANIES IN SOUTH AFRICA

There over 200 Production Companies in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

BROADCASTING FACILITIES IN SOUTH AFRICA

There are currently 5 broadcasting companies in South Africa with high definition, IPTV & Streaming capabilities. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

LOCATION AND LOCATION SERVICES

There are 22 film and TV location services in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

POST PRODUCTION, SOUND AND MULTIMEDIA PRODUCTION COMPANIES IN SOUTH AFRICA

There are some 74 Post production, sound & multimedia production companies in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

SFX, PROPS & WARDROBE COMPANIES IN SOUTH AFRICA

There are 18 SFX, Props & Wardrobe companies in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

STAGES, STUDIOS & SETS IN SOUTH AFRICA

There are 10 stages, studios in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

FILM AND TV EQUIPMENT RENTAL IN SOUTH AFRICA

There are 36 film and TV equipment rental companies in South Africa. Please to the KFTV website at http://www.kftv.com/country/south-africa for a complete list with contact details.

THE FOLLOWING IS ON SOUTH AFRICA’S INCENTIVES, REBATES, AND CONDITIONS FILMING FOR BOTH FOREIGN COMPANIES AND WORKING IN PARTNERSHIP WITH DOMESTIC PRODUCTION COMPANIES AND ENTITIES.

THE DEPARTMENT TRADE AND INDUSTRY…thedti.gov.za

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

Objectives:

To encourage and attract large-budget films and television productions and post-production work that will contribute towards employment creation, enhancement of international profile, and increase the country’s creative and technical skills base.

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.

Eligible Enterprises:

Foreign-owned qualifying productions and South African qualifying post-production work with:

QSAPE of R12 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.

Application Forms and Guidelines:

Programme Guidelines

Application for Provisional Approval - Form A

Confirmation of Commencement of Principal Photography - Form B  [PDF]

Revised Completion Date - Form C

Application for Payment - Form D

B-BBEE Scorecard Breakdown

Annexure A - Audit Procedures

Annexure B - Independent Auditor's Report

Annexure C - Suretyship

Annexure D - Details of Approved Expenditure

Annexure E - The terms of the Relationship

Contact:

Dimakatso Kgomo,  DKGomo@thedti.gov.za   +27 (12) 394 1462

Foreign Film and Television Production and Post-Production Incentive

Intended to encourage and attract large-budget films and television productions and post-production work that will contribute towards employment creation, enhancement of South Africa’s international profile, and increase the country’s 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 (about $1,3-million) or above.

A 22.5% to 25% reduction if filming and post-production takes place in South Africa. Post-production expenditure must be R1,5-million (about $166 000) or above to qualify.

The South African Film and Television Production and Co-Production Incentive

A rebate of 35% for the first R6-million (about $662 000) spent, and 25% for the remainder of production expenditure.

Website: The DTI’s film incentive

National Film and Video Foundation

The National Film and Video Foundation (NFVF) helps the industry access funds, promotes the development of South African film and television audiences, develops talent and skills in the country – with a special emphasis on previously disadvantaged groups – and helps filmmakers represent and market their work internationally.

The NFVF offers funding for the production of films and documentaries through repayable loans or grants. It supports South African-owned production companies, and prioritizes projects or organizations’ of national importance and proposals that contain local content and have empowerment or training components.

It also funds education and training through various bursaries; awards development funding; and supports applications for marketing and distribution funds, allowing independent producers and distributors’ access to test screenings and film launches.

Website: www.nfvf.co.za

Tax incentives

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.

Website: www.sars.gov.za

Department of Arts and Culture

Local film production is also vigorously promoted by the Department of Arts and Culture. The department funds film production and especially supports documentary film making.

Website: www.dac.gov.za

Would you like to use this article in your publication or on your website? See Using Brand South Africa material.

LOCAL SA FILM & TV PRODUCTION AND CO-PRODUCTION (SA FILM)

Objectives:

To support the local film industry and to contribute towards employment opportunities in South Africa.

Benefits:

The rebate is calculated as 35% of the first R6 million of QSAPE and 25% of the QSAPE on amounts above R6 million.

Eligible Enterprises: 

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.

Application Forms and Guidelines:

Program Guidelines

Application for Provisional Certificate - Form A

Confirmation of Commencement of Principal Photography - Form B

Revised Completion Date - Form C

Application for payment - Form D

B-BBEE Scorecard Breakdown

Annexure A - Audit Procedures

Annexure B - Independent Auditor's Report

Annexure C - Suretyship

Annexure D - Details of Approved Expenditure

Annexure E - The terms of the Relationship

Contact:

Dimakatso Kgomo, DKGomo@thedti.gov.za   +27 (12) 394 1462

INDUSTRIAL DEVELOPMENT CORPORATION

Industrial Development Corporation

A state-owned development financing institution, the Industrial Development Corporation (IDC) seeks to create a sustainable local film industry.

The IDC’s Media and Motion Pictures Strategic Business Unit funds film, broadcasting and post-production projects. Assistance is usually in the form of loan finance, and it will not fund more than 49% of a project.

Media and Motion Pictures

The IDC's strategic business unit (SBU) for media and motion pictures is a driving force behind the growth of the local film industry and will continue making a difference by helping local filmmakers turn their creative visions into reality.

The unit offers funding for the production of motion pictures, including feature films, animation and television series. It also works to boost audience development, support local television broadcasting and fund post-production facilities.

Objectives of the SBU 

• To promote sustainable production of motion pictures…
• To grow the local audience by encouraging consumption of South African films and building township cinemas…
• To develop a competitive animation sector…
• To develop black industrialists within the broadcast sector… 

Doing business with the unit

Our focus is on developing a sustainable motion picture value chain in South Africa by funding the production of feature films, television shows, animation and documentaries, while supporting broadcasting, establishing digital cinemas in townships and rural areas, and developing new or alternative distribution systems for motion pictures.

The IDC's business support programme also offers non-financial support to entrepreneurs. This is available during both the pre- and post-approval stages, and includes assistance for distressed clients.

Who should apply for funding?

New or existing companies within the media and motion pictures sector that need funding of up to R1-billion.

Funding can be structured in the most appropriate manner, utilizing a wide range of instruments to meet the needs of the business, including: 

• Debt/equity…
• Quasi-equity…
• Bridging finance…
• Venture capital…
• Funding criteria…
• Security, of a type related to your business's specific circumstances…
• Compliance with international environmental standards…
• The owners/shareholders are expected to make a reasonable financial contribution to the project/business. The IDC prefers its exposure not to exceed that of the business owners/shareholders…
• However, the contribution of historically disadvantaged persons may be lowered under special circumstances, in which case the IDC will be prepared to extend finance in excess of the owner's contribution…
• The project/business must exhibit economic merit in terms of profitability and sustainability…
• The IDC does not refinance fixed assets, since our aim is to expand the industrial base…

 Applying for funding

Applications for funding should be in writing, and include an executive summary and comprehensive business plan. In addition, applicants should submit the following: 

• Script coverage from an independent reputable source (include credentials of the source)…
• Details of the film director, producers, scriptwriters/screenwriters, DOP and principal cast, including, for each of the above...
• Previous projects…
• CVs…
• Filmography.
• An indication of the genre and the success/performance of the films each were involved in…
• Detailed production budget and top sheet...
• Specify the Qualifying South African Production Expenditure (QSAPE) amount…
• Finance structure, including details of other co-financiers and written confirmation of proposed terms and conditions. (The co-financiers must cover at least 51% of the total production budget. The IDC funds up to a maximum of 49% of the budget, and IDC funding must be spent in South Africa.)...
• Proposed recoupment schedule…
• Details of the sales agent, including the terms and conditions of the distribution and marketing strategy for the film, and the agent's track record, including a list of films distributed and their success/performance…
• Detailed sales estimates per territory, including...
• Associated territorial rights…
• Presale letters or agreements…
• Comparatives used to determine the sales estimates (audience, box office numbers in terms of similar genre films)…
• Collective agent and terms of agreement (if available)…
• Project information (location of principal photography, equipment to be used, number of cast and crew and how many days' involvement, post-production facilities). The following information should be included...
• Jobs created (in the same format/details provided for the Department of Trade and Industry application)…
• Skills development and skills transfer plan…
• How much will be spent at pre-production, production and post-production…
• Details of the production company: experience and previous productions…
• Chain of title documentation, including script, music, etc.…
• Identity of the completion guarantor, and terms and conditions of the guarantee…
• Co-production agreements (where applicable)…
• Provisional letter from the Department of Trade and Industry regarding the amount of the rebate…
• Disclosure of related party transactions involved in the production process, including their value and details…

In addition to the specific requirements of the media and motion pictures SBU, applications must meet the IDC's minimum requirements.

Sources & Credit: Google, Wikipedia, Pinterest, IMDB, Linked In, Indie Wire, The Department Trade and Industry…thedti.gov.za, News Expats, Brand South Africa, Screen Africa, Variety, AFK Insider, Solutions, Ranker.com, AllMovie.com, Travel Ground, KFTV…kftv.com

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