{"id":781758,"date":"2024-07-11T17:00:00","date_gmt":"2024-07-11T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=781758"},"modified":"2024-07-11T17:03:25","modified_gmt":"2024-07-11T15:03:25","slug":"this-is-what-some-of-south-africas-biggest-companies-pay-in-tax","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/781758\/this-is-what-some-of-south-africas-biggest-companies-pay-in-tax\/","title":{"rendered":"What some of South Africa&#8217;s biggest companies pay in tax"},"content":{"rendered":"\n<p>South Africa&#8217;s biggest corporations pay a hefty sum in corporate tax, with individual tax contributions amounting to the billions &#8211; with Standard Bank sporting the highest direct tax contributions of the groups analysed.<\/p>\n\n\n\n<p>Corporate income tax (CIT) in South Africa has a small tax base, with <a href=\"https:\/\/dailyinvestor.com\/finance\/9716\/only-770-companies-pay-over-60-of-south-africas-corporate-tax\/\">an estimated<\/a> 0.09% of companies \u2013 770 large corporates \u2013 paying over 60% of the country&#8217;s CIT.<\/p>\n\n\n\n<p>BusinessTech looked at the amount of taxes declared by <strong>just some<\/strong> of South Africa&#8217;s biggest companies, represented in their most recent annual reports as well as PwC analysis.<\/p>\n\n\n\n<p>These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Naspers;<\/li>\n\n\n\n<li>Shoprite;<\/li>\n\n\n\n<li>Standard Bank;<\/li>\n\n\n\n<li>FirstRand;<\/li>\n\n\n\n<li>Nedbank;<\/li>\n\n\n\n<li>Absa;<\/li>\n\n\n\n<li>Capitec;<\/li>\n\n\n\n<li>Vodacom;<\/li>\n\n\n\n<li>and MTN.<\/li>\n<\/ul>\n\n\n\n<p>The first point of reference for the analysis is direct tax, such as income, corporate and property tax, as these are imposed directly on the company in proportion to their income or assets. These taxes cannot be shifted to others and are borne solely by the taxpayer.<\/p>\n\n\n\n<p>If they are reported, indirect taxes will also be looked at. These include the likes of VAT and customs duties, are levied on goods and services based on their value. <\/p>\n\n\n\n<p>However, these will be additional references as these taxes are collected on behalf of the South African Revenue Service (SARS) authority from customers, suppliers or employees, and not the company itself.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Naspers<\/strong><\/p>\n\n\n\n<p>Naspers, the largest South African company by market cap headquartered in Cape Town, operates across 31 countries, ultimately diversifying its tax payments.<\/p>\n\n\n\n<p>In the fiscal year ending March 2024, Naspers paid $118.7 million (<strong>R2.14 billion<\/strong>) <strong>in taxes in South Africa<\/strong>, slightly down from $121.1 million the previous year.<\/p>\n\n\n\n<p>The decrease was attributed to losses in its online retail division amid a challenging economic environment marked by high interest rates and inflation. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"OEUQE7uPKq\"><a href=\"https:\/\/businesstech.co.za\/news\/business\/778401\/another-massive-loss-for-takealot\/\">Another massive loss for Takealot<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Another massive loss for Takealot&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/business\/778401\/another-massive-loss-for-takealot\/embed\/#?secret=Cj0HGD1kE4#?secret=OEUQE7uPKq\" data-secret=\"OEUQE7uPKq\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Globally, Naspers paid $1.31 billion (R23.69 billion) in taxes, with Brazil receiving the highest amount of $241.8 million (R4.37 billion).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Shoprite<\/strong><\/p>\n\n\n\n<p>Shoprite, a major player in African retail known for competitive pricing and a wide product range, reported significant tax payments for the 2023 financial year.<\/p>\n\n\n\n<p>The company paid a total of R2.8 billion in direct income tax, marking an increase of nearly R300 million from the previous year. Of this amount, <strong>R2.46 billion<\/strong> came from South African income tax.<\/p>\n\n\n\n<p>Shoprite&#8217;s expansion has been notable, growing from 1,581 stores in 2014 to 3,543 stores in 2023, employing over 153,000 people.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"c50JO9au0T\"><a href=\"https:\/\/businesstech.co.za\/news\/business\/773054\/big-changes-for-shoprite-in-south-africa\/\">Big changes for Shoprite in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Big changes for Shoprite in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/business\/773054\/big-changes-for-shoprite-in-south-africa\/embed\/#?secret=7cNb28Sn3c#?secret=c50JO9au0T\" data-secret=\"c50JO9au0T\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>The &#8216;Big Four&#8217; banks<\/strong><\/p>\n\n\n\n<p>According to PwC\u2019s Major Banks Analysis, South Africa\u2019s \u2018Big Four\u2019 banks \u2013 Absa, FirstRand, Nedbank, and Standard Bank \u2013 paid the South African government <strong>R37.7 billion in direct taxes <\/strong>in 2023.&nbsp;<\/p>\n\n\n\n<p>The financial services firm said the country\u2019s major banks registered strong growth in a difficult operating environment, with revenue benefitting from higher interest rates, balance sheet growth, and efficiencies from digitalising their services.<\/p>\n\n\n\n<p>The combined headline earnings of these four banks rose 13.8% in 2023 to R113.2 billion, despite their average credit loss ratio rising to 102 bps from 82 bps in 2022.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>FirstRand Limited<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne-1024x683.jpg\" alt=\"\" class=\"wp-image-741925\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne-1024x683.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne-300x200.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne-768x512.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/01\/fnb-gaborne.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>FirstRand Limited has a portfolio of retail, commercial, corporate and investment banking services in South Africa offers niche products in certain international markets. The bank has three major divisions which are separately branded: First National Bank (FNB), WesBank and Rand Merchant Bank (RMB).<\/p>\n\n\n\n<p>According to the Major Banks Analysis report for the period ended 31 December 2023, the group paid an estimated <strong>R12.59 billion in direct taxes.<\/strong><\/p>\n\n\n\n<p>According to its annual report, R810 million was also paid in indirect taxes during the fiscal year ending June 2023.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Standard Bank<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank-1024x683.jpg\" alt=\"\" class=\"wp-image-709164\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank-1024x683.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank-300x200.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank-768x512.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/standard-bank.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>PwC\u2019s Major Banks Analysis shows that during the 2023 fiscal year, Standard Bank Group paid <strong>R12.72 billion<\/strong> in direct taxes during the 2023 financial year.<\/p>\n\n\n\n<p>Additionally, according to its 2023 integrated annual report, the group saw an increase in indirect taxes, totaling R1.85 billion compared to R1.6 billion previously.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Absa<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/07\/absa-headline-.jpg\"><img decoding=\"async\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/07\/absa-headline--1024x683.jpg\" alt=\"\" class=\"wp-image-702437\"\/><\/a><\/figure>\n\n\n\n<p>The Absa group, one of the largest financial services groups in Africa, headquartered in Johannesburg, paid an estimated R7.98 billion in direct taxes during the 2023 financial year, according to PwC\u2019s Major Banks Analysis.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Nedbank<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank-1024x576.jpg\" alt=\"\" class=\"wp-image-774303\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Nedbank.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Nedbank Group Limited, commonly referred to as Nedbank, is one of South Africa&#8217;s largest banking groups. According to PwC\u2019s Major Banks Analysis, it is estimated that the bank paid <strong>R4.43 billion <\/strong>in direct taxes in 2023.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Capitec Group<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/02\/Capitec-head-office.png\"><img decoding=\"async\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/02\/Capitec-head-office-1024x683.png\" alt=\"\" class=\"wp-image-663239\"\/><\/a><\/figure>\n\n\n\n<p>Capitec Group reported a notable increase in tax payments for the 2024 financial year, totaling <strong>R2.88 billion in income tax<\/strong>, according to its most recent annual report..<\/p>\n\n\n\n<p>This marked an uptick of nearly R400 million from the previous year, driven by a 10% rise in active clients. The company&#8217;s growth strategy and expanding client base have bolstered its fiscal contributions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Vodacom<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom-1024x683.jpg\" alt=\"\" class=\"wp-image-714872\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom-1024x683.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom-300x200.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom-768x512.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/Vodacom.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Vodacom, a major telecommunications provider operating across Africa, reported total contributions of R13.7 billion to public finances in South Africa in the most recent financial year.<\/p>\n\n\n\n<p>This included <strong>R4.4 billion from direct taxes<\/strong>, R6.5 billion from indirect taxes, and R2.8 billion from direct non-tax contributions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>MTN<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo-1024x683.jpg\" alt=\"\" class=\"wp-image-681837\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo-1024x683.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo-300x200.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo-768x512.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/mtn-logo.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>MTN Group, a prominent telecom operator across numerous African and Middle Eastern countries, reported total income tax payments of <strong>R7.5 billion<\/strong> for the 2023 fiscal year.<\/p>\n\n\n\n<p>It is unclear what the exact contributions into South Africa is, as these taxes are grouped in the report.<\/p>\n\n\n\n<p>The company&#8217;s operations in Nigeria and South Africa contributed the most to its overall tax contributions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/781752\/the-tiny-municipality-in-south-africa-that-spends-r23000-on-each-resident\/\">The tiny municipality in South Africa that spends R23,000 on each resident<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major South African companies pay billions in direct taxes each year, contributing the lion&#8217;s share of the country&#8217;s corporate tax base.<\/p>\n","protected":false},"author":10,"featured_media":782047,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[2407,2887,6183],"class_list":["post-781758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pwc","tag-tax","tag-taxes"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/781758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=781758"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/781758\/revisions"}],"predecessor-version":[{"id":782157,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/781758\/revisions\/782157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/782047"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=781758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=781758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=781758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}