South African banks are among the most significant contributors to national revenue, reflecting not only corporate income tax, but also the wider network of employment, consumption, property, and regulatory taxes, according to PwC.
In collaboration with The Banking Association South Africa (BASA) and eight major South African banks, PwC performed the 2024 Total Tax Contribution (TTC) study using the company’s internationally recognised TTC Framework, providing a transparent and data-driven view of the banking sector’s fiscal footprint.
“South Africa’s banking sector is a foundation of fiscal resilience, providing a stable tax base and serving as a critical intermediary in the flow of taxes to the government,” says Carla Perry, associate director, Tax Reporting and Governance at PwC South Africa. “This study establishes transparent, standardised and comparable insights into the fiscal footprint of major South African banks creating a basis for future collaborative research. It also resonates with our broader research on transparent tax reporting, which shows that companies able to clearly communicate their tax story build stakeholder trust and demonstrate a commitment to ethical business practices and sustainable development.”
The study reveals that eight participating banks contributed a total of R90,45-billion in TTC for the 2024 fiscal year. This amount represents 4,88% of the government’s total tax receipts and 1,24% of South Africa’s national GDP. This significant fiscal contribution comes from eight participating banks collectively representing almost two‑thirds of the financial services sector on the JSE.
Of the R90,45-billion total, R33,66-billion (37,21%) represents taxes borne, direct costs to the banks including corporate income tax, skills development levies, and irrecoverable VAT.
Banks are not just taxpayers – they are one of the tax system’s most efficient collection agents. R56,79-billion (62,79%) was taxes collected on behalf of government. They collected R33,23-billion in people taxes, with PAYE accounting for almost all of it. They remitted R12,47-billion in VAT. They processed R1,50-billion in Securities Transfer Tax (STT), representing 25,18% of all government STT revenue. They also administered R9,59-billion in dividends withholding tax, amounting to 22,25% of national Dividends Tax collections.
Beyond taxes, the participating banks made a further R3,40-billion in non-tax payments to government in FY2024 supporting regulatory oversight, financial system stability, and depositor protection.
This comes at a cost.
The cost of tax compliance in South Africa’s banking sector is substantial and rising. In 2024, the eight participating banks incurred R589,3-million in compliance costs – equivalent to 0,65% of the sector’s TTC.
Tax compliance remains heavily people‑driven. Across the eight banks, compliance activities consumed 503 309 hours in 2024 – the equivalent of 242 full‑time employees working exclusively on tax‑related tasks. Internal staffing accounts for 61% of all compliance costs.
On top of that, R74,8-million in additional cost was absorbed by banks for uncompensated administrative work required under SARS’ third‑party appointment (TPA) regime. A hidden cost where, for every R100 collected via TPAs, banks spent R1.39 in compliance. When taxes administered through TPAs are included, the sector’s total fiscal footprint rises to R95,85-billion – reflecting a broader contribution that extends beyond the global PwC TTC methodology. Yet these costs remain invisible, absorbed within existing staff duties rather than tracked as dedicated functions.
“We trust that the findings provide context to policymakers, investors, revenue authorities, and other stakeholders’ not only on how much taxes banks pay, but also how the sector drives economic value beyond the taxes,” says Perry. “Internally, TTC data can be a valuable tool that informs board discussions, guides investment decisions, and supports engagement with stakeholders.”
In reality, 87,5% of banks use this data when working with policymakers and SARS, while 75% rely on it for investment choices.