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A juicy tax break is fair game in Safari Land

South Africa is at present arguably the most popular shooting location abroad for Indian producers. The country boasts of some of the best beaches in the world like Clifton, Fish Hoek and Hout Bay; awe-inspiring wildlife at the Kruger National Park and Kalahari Gemsbok National Park; and a topography that ranges from the wide open savanna of the Eastern Transvaal to the Kalahari Desert and the peaks of the Drakensberg Mountains. Besides the beautiful and varied locales, affordable lodging and a vast Indian diaspora all add to the charm of shooting in the southern extreme of the Dark Continent. If Indian producers need further inducement to shoot in springbok country, well the South African government offers an attractive financial carrot too in the form of the ‘Location Film and TV Production Incentive’.

What It’s About • The Location Film and TV Production Incentive is only available to foreign-owned qualifying productions with Qualifying South African Production Expenditure (QSAPE) of Rand 12 million (approx Rs 75 million) and above. • The objective is to encourage large-budget films and television productions that will contribute to SA’s economic development and international profile and increase foreign direct investment.• An eligible applicant will be rebated 15% of the QSAPE but the rebate is capped at R10 million (approx Rs 63 million). Who Can Apply •An applicant must be a Special Purpose Corporate Vehicle (SPCV) incorporated in the Republic of South Africa solely for the purpose of the production of the film or television project. • 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 worldwide. • Only one entity per film production can be eligible for the incentive. • At least 50% of the principal photography schedule must be filmed in South Africa. • A minimum of four weeks of the principal photography must be filmed in South Africa. What costs qualify as QSAPE? • Qualifying Production Expenditure will include all the production costs spent by the applicant on copyrights and goods owned, or facilities and services provided by South African companies. • Where individuals or contractors are paid via an agency, proof of the South African citizenship status of the individual or contractor will be required.• Where the purchase of South African copyright is being claimed as QSAPE, the relevant legal agreement verifying chain of title must be attached to the application form.• Goods and services may be provided outside South Africa as long as the shooting schedule requirements are met.

NON-QUALIFYING EXPENDITURE

• Financing expenditure

• General business overheads

• Other associated party fees

• Deferments, profit participation,    residuals

• Advances

• Land and building

• Costs of services embodied in   goods

• Depreciation

How much rebate?

• The rebate is calculated as 15% of QSAPE

• The maximum rebate is capped at Rand 10 million (Rs 63 million)

How do you apply?

To get provisional approval to avail of the incentive, the following documents must be included in the application:

• Summary and detailed budget in SA Rand

• Financial plan including letters of intent from investors

• Advanced ruling from the NFVF (National Film And Video Foundation) in the case of a co-production

• Distribution agreement

• Provisional shooting schedule

• Certificate of incorporation of the SPCV

• Appointment of directors of the SPCV

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