REBATE INCENTIVES

The South African Department of Trade and Industry [DTI] offers two rebate programmes for the making of films in South Africa. The IDC [Industrial Development Corporation]
offers cash flow and venture loans.

01 FOREIGN FILM REBATE

Capped at R50m* per project: set at 20% of qualifying spend. Can increase to 22.5% or 25% depending upon the level of post-production spend in South Africa. Paid after completion/delivery.

To qualify

• must spend min R12m in South Africa • must shoot for at least 4 weeks and 50% in South Africa • must be an internal project serviced by local companies and South African nationals Note* Qualifying spend excludes the cost of international personnel Note** Exchange rate fluctuates, check out today’s rate here

See here for full details and application downloads

02 TREATY CO-PRODUCTION REBATE

Uncapped. Set at 35% on the first R6m] of qualifying spend and 25% of the balance. Bonded projects: paid in 5 milestones over production period.
Un-bonded projects: paid after completion/delivery.

To qualify

• must be a certified official treaty co-production [see below]
• must have a total spend of min R2.5m • must shoot for min 14 days and 50% in South Africa

Treaty co-productions

Co-production treaties exist with the UK, Canada, Germany, France and Australia with the following key criteria as constants:
• each co-producer must contribute min 20% of budget
• each co-producer’s artistic / technical contribution must be in line with its % financial contribution
• only treaty nationals may participate as personnel without dispensation from the authorities
• permissible to introduce a co-producer from a country that has an existing treaty with one of the other co-producers
• co-producers must jointly own the rights in the project

See here for full details and application downloads

03 IDC* CASH FLOW & VENTURE LOANS

• Cash flow loans against the DTI rebate
• Cash flow loans against pre-sales
• Venture loans against the commercial exploitation of the project; a first position recoupment position required

Set at between R1million and 49% of the budget, subject to the project’s risk and return profile. Financial fees 24% of the value of the loan plus a raising fee of 1%. Qualification requirements differ from project to project.

*The IDC [Industrial Development Corporation] is one of the largest investors in film projects in South Africa.