Good News for filmmakers!
The South African Film Industry is set for a boom, following the introduction of an incentive scheme to foreign and local filmmakers.
Trade and Industry Minister, Mandisi Mpahlwa, said at a news conference on 30 June 2004, South Africa will offer about $40-million in tax incentives to local and foreign companies over the next three years to promote the country as a prime filming location. South Africa’s entertainment industry is currently valued at $1.2 billion.
The Large Film and Television Production Rebate scheme is intended to give foreign production companies a rebate of 15 percent and local filmmakers 25 percent for any money spent in the country for producing the film. The Department of Trade and Industry has set aside R252 million over a period of three years, as incentive for production companies who want to make a film in South Africa.
For production companies to qualify, 50 percent of their work must be filmed in South Africa. Filmmakers would qualify if they shoot feature films, television films, television drama series, mini-series or documentaries while reality series and pornography will not be eligible for a tax rebate.
“South Africa is a popular destination for international productions and co-productions. One can argue that film is an important part of the cultural domain in any country, but particularly so in South Africa where social change depends on the quality of communication in society. Film and video can be effectively used to cross cultures and bridge divides. With the tax rebate available now to filmmakers, government now reflects a renewed confidence and trust in South African filmmaking. Filmmaking can now develop on par with global standards because of the funds available to filmmakers”, says CEO of Sithengi, Michael Auret.
Download Draft Guidelines for 2004 Tax Rebate Scheme
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