2024 Total Tax Contribution (TTC) study

Eight large banks contribute R90.45bn in taxes, accounting for 4.88% of government revenue and 1.24% of national GDP: PwC and BASA report

31 March 2026, Johannesburg: Transparent reporting of the banking sector’s fiscal contributions is important for building trust and guiding policy. Despite challenges like a tough economy, political changes, and high interest rates, South African banks have remained strong, growing profits and improving returns. This shows their important role in supporting the economy.

PwC, in collaboration with The Banking Association South Africa (BASA) and eight major South African banks, performed the 2024 Total Tax Contribution (TTC) study using PwC's internationally recognised TTC Framework, providing a transparent and data-driven view of the banking sector's fiscal footprint. The study highlights how 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. This marks an important milestone in strengthening transparency and reinforcing the sector’s commitment to South Africa’s social and economic development.

The study reveals that eight participating banks contributed a total of R90.45bn 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 R90.45bn total, R33.66bn (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. R56.79bn (62.79%) was taxes collected on behalf of government. They collected R33.23bn in people taxes, with PAYE accounting for almost all of it. They remitted R12.47bn in VAT. They processed R1.50bn in Securities Transfer Tax (STT), representing 25.18% of all government STT revenue. They also administered R9.59bn in dividends withholding tax, amounting to 22.25% of national Dividends Tax collections.

Beyond taxes, the participating banks made a further R3.40bn 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 R589.3mn 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, R74.8mn 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 R95.85bn—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.

In reality, 87.5% of banks use this data when working with policymakers and SARS, while 75% rely on it for investment choices.