Building Public Trust Through Tax Reporting

South Africa is at a turning point. With a strong history of good governance and a deep-rooted value system recognising relationships and interconnectedness with others, local businesses have a real chance to lead the way in tax transparency. This isn’t about ticking boxes; it’s about using transparency to create real value for society and build trust where it matters most.

The King V™ Report on Corporate Governance for South Africa, 2025¹ (King V) is here. Released by the Institute of Directors South Africa (IODSA) on 31 October 2025, this new, globally recognised corporate governance code replaces previous iterations. It applies to financial years starting on or after 1 January 2026, and early adoption is encouraged. King V calls for a shift from aspirational vision to practical accountability, from long-term ambition to immediate responsibility.

King V guides organisations to think beyond profit. It’s about creating enduring value for current and future generations and raising the bar on transparency. It calls for a stakeholder-inclusive, systems-value mindset: long-term success depends on the health of the socio-ecological systems the organisation relies on. Organisations are encouraged to create value for those systems. Measure success by shared value and meaningful stakeholder outcomes.

In this context of responsible corporate citizenship, tax isn’t just a cash outflow; it’s a signal of an organisation’s commitment to its economic, social and environmental ecosystems. Your tax strategy is a visible indicator of corporate integrity and an increasingly important driver of stakeholder trust.

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PwC’s latest insights show that sustainability isn’t just the right thing to do—it’s smart business. It’s not a side project; it’s a powerful driver of transformation, resilience, and growth. Leaders who embrace this shift aren’t just future-proofing their business; they are unlocking value.

According to PwC’s recent benchmarking study, South African companies are at a turning point in their sustainability reporting journey. Strong governance practices, widespread use of the Integrated Reporting Framework, and increasing adoption of global standards have created a solid foundation for the future of sustainability reporting. However, regulatory changes are accelerating. PwC’s Global Sustainability Reporting Survey highlights that while some organisations are reassessing their reporting plans, many are continuing to move forward. Why? Because the pressure is real. Stakeholders still expect reliable information on how businesses manage sustainability risks and pursue opportunities.

This sustainability landscape is prompting companies to focus on what is material and measurable. Tax transparency is a key part of this shift. When integrated into broader strategy, it can help businesses anticipate fiscal changes, manage risk, and support long-term resilience.

To be effective, tax strategy should be linked to core business priorities—such as innovation, operational efficiency, and talent development. It also requires a realistic view of trade-offs. Not every sustainable tax initiative will bring an immediate bottom-line return, and not every stakeholder will be persuaded by a strategy that prioritises long-term resilience over short-term profit. But ignoring the strategic role of tax carries its own risks.

Double materiality assessments should consider both external impacts—such as contributions to public services—and internal implications for business models and decision-making.

To succeed, be transparent when silence is easier, stick to a principled tax strategy when consensus on its value wavers, and act even when the global political tide turns against sustainable policy.

This 10th edition marks a decade of supporting companies in turning tax transparency into practical action. Each year, we’ve applied the PwC Tax Transparency Framework (the framework) to assess the disclosures of the top 100 JSE-listed companies by market capitalisation, tracking their progress toward greater openness and stronger governance.

This year’s findings offer timely insights to help businesses navigate the growing complexity of tax reporting. Our goal is to help you stay ahead—of regulatory developments, industry peers, and stakeholder expectations. Because when tax is approached strategically and communicated clearly, it becomes a foundation for lasting trust.

In 2024, 12 companies scored above 60% for overall tax transparency, compared to 15 in 2023. This group includes nine primary-listed and three secondary-listed entities. Meanwhile, 65 companies scored 30% or less, consistent with last year’s results, indicating that transparency remains a challenge for the majority of the market.

Sector insights

On average, the telecommunication sector consistently provided the most effective tax transparency. Among the top 20 performers, ten are in the basic materials sector, five in the financial sector, two in the telecommunications sector and one each in the energy, industrial and technology sector.

Tax transparency in South Africa is steadily improving year on year in both quality and depth. While average scores don’t always show it, the top performers are raising the bar. And with each cycle, more companies are joining the ranks.

Organisations making real progress aren’t doing it for approval. They are embedding tax into their sustainability strategy because it works. It makes their tax strategies more resilient and future-fit. But when transparency is treated as a tick-box exercises or a bid for “brownie points”, the value quickly fades.

Tax transparency: Africa in the global spotlight

Tax and tax-related sustainability reporting trends in Africa

To understand which frameworks are guiding the most effective tax reporting, we looked at disclosures from 18 primary-listed South African companies that specifically expressed support for tax transparency frameworks.

It is noteworthy that 12 of these companies specifically referenced the King IV™ Report on Corporate Governance for South Africa (King IV) (now replaced by King V) and the JSE Sustainability Disclosure Guidelines—showing a strong reliance on South African-specific guidance for tax reporting.

While South African guidance is locally grounded—it complements global frameworks such as the Global Reporting Initiative (GRI), helping companies demonstrate robust governance to both local and international investors—boosting credibility and comparability.

The data shows a strong alignment with GRI 207: Tax 2019 (GRI 207). All 18 companies reported adequately in line with this standard, which requires organisations to disclose their tax strategy, governance over tax, risk management, and how tax decisions align with business objectives, including country-bycountry reporting (CbCR) where applicable. This is not unexpected, as GRI 207 has been shown to improve comparability, credibility, and accountability in tax reporting—helping stakeholders better understand tax risks, performance, and how tax contributes to sustainable value creation.

Adoption of climate-related frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), and the World Economic Forum stakeholder capitalism metrics is more selective, suggesting opportunities for broader integration of global ESG and sustainability frameworks into tax reporting. The varied use of frameworks also creates a benchmarking opportunity: companies can strengthen their reporting by mapping tax disclosures across multiple frameworks to improve consistency and clarity.

King V’s focus on risk governance and integrity supports a stronger license to operate, especially in a volatile environment. It also meets growing investor and stakeholder expectations for principled sustainability practices. Importantly, local guidance is seen as practical and relevant, making it easier for South African companies to implement, assure, and integrate across annual reports, sustainability disclosures and integrated reports. The result is a more mature governance framework and greater investor confidence.

Globally, the shift from voluntary to mandatory tax disclosure is gaining momentum. Initiatives like Public Country-by-Country Reporting (pCbCR) and the EU’s Corporate Sustainability Reporting Directive (CSRD)—covered in detail in our previous report—are now starting to take effect. While progress is being made, tax still tends to be underrepresented in sustainability reporting. That’s a gap—and an opportunity.

A compass to achieve robust tax governance

Good governance is outcomes-based: it’s judged by its consequences, not just by implementing recommended practices. The focus is on value, trust, and managing risk. What matters is evidence—case studies, data, and feedback—not just policies on paper. Reporting should connect actions to outcomes, highlighting both the gaps and the fixes. The goal? Embedding a culture, strategy, and reporting that genuinely improves how the organisation operates—and how it’s perceived.

Ethical culture is the foundation. It shapes how organisations achieve performance and value creation, ensure conformance and prudent control, and earn legitimacy. Performance drives innovation, but without ethical guardrails it can lose direction. Conformance keeps things on track, but without purpose it can become too risky. Legitimacy builds stakeholder confidence, but it only lasts if ethics are real and embedded.

Together, these outcomes reframe tax governance as a strategic tool. Companies that align tax practices with ethical culture don’t just meet standards—they set them. They turn transparency into a competitive edge, drive sustainable impact, and build trust that lasts.

Robust governance is the foundation of credible tax transparency. Without clear oversight, controls and real accountability, an organisation cannot provide a reliable, decision‑useful message on its approach to tax.

Risk of getting it wrong

• Tax policies exist, but they’re not embedded in day-to-day decisions—opening the door to aggressive tax positions.
• When tax is seen as a pure cost, it makes it hard to balance cost savings with staying compliant.
• Without proper governance and oversight, blind spots emerge.

The takeaway

A culture that embodies ethical values and disciplined practices in tax lays a foundation for strong governance and genuine transparency. When tax decisions are guided by ethical principles, the benefits are lasting: reduced tax risk, stronger compliance, and greater trust with stakeholders through clear, responsible disclosures.

Risk of getting it wrong

• KPIs ignore tax risk, cash tax, andlong-term value.
• When tax outcomes aren’t tied to business and sustainability strategy; capital allocation, risk exposure and reputation may suffer.
• Poor data and siloed reporting hide tax risk and impact.
• Without scenario planning, companies lack a clear view as global and local rules shift.

The takeaway

Businesses that reshape tax strategies to pair efficiency with transparency don’t just achieve outcomes for shareholders–they create sustainable value for everyone. By staying ahead of regulatory shifts and public sentiment, organisations move faster, turning tax governance into a driver for innovation. This means embedding tax strategies and controls that reflect ESG goals: aligning incentives, ensuring airtight documentation and transfer pricing substance, and making the most of legitimate ESG tax breaks like green energy credits. Transparent communication about how tax fuels sustainable value–not just compliance–build trust and spark stakeholder confidence. The result? Tax becomes a measurable advantage, helping organisations adapt quickly to new and deliver long-term social and financial returns.

Risk of getting it wrong

• Fines, penalties, settlement costs or dragged-out legal battles.
• Losing the right to operate in key markets.
• Publicised tax failures erode trust and stakeholder confidence.

The takeaway

Businesses that lead with airtight compliance frameworks don’t just tick boxes—they build stability in uncertain times. By laying down strong tax controls, they stay ahead of regulatory changes and adapt quickly. This isn’t just about rules—it’s about earning investor confidence and turning tax governance into a strategic asset.

The landscape for CbCR disclosure remains largely unchanged, with only nine companies (2023: 10) meeting seven or more CbCR requirements. Similar to the previous year, full CbCR disclosure was provided by just two companies.

Risk of getting it wrong 

• Lack of clarity or fairness in tax practices can damage trust.
• Companies may face public criticism, activist pressure, or accusations of exploiting loopholes.
• Inconsistent TTC or CbCR data can attract regulatory scrutiny—and potential penalties.
• Without clear tax governance benchmarks, companies risk falling behind competitors.

The takeaway

Proactive CbCR builds trust—and turns sceptics into supporters. By publishing clear, auditable tax breakdowns, businesses move beyond compliance and into credibility. This is transparency done right. It’s a chance to show you’ve got nothing to hide, to prove fairness and to strengthen your social licence to operate. Done right, it leaves a legacy of integrity that stakeholders can believe in.

Each year, our independent judging panel commends companies with a primary listing on the JSE that demonstrate the highest level of tax transparency, based on the PwC Tax Transparency Framework. The companies recognised here delivered strong, consistent, and comprehensive reporting across all categories of the Framework and addressed the majority its criteria.

We extend our sincere thanks to the judging panel for their time, expertise, and commitment to this initiative. Their independent assessments and thoughtful feedback continue to drive progress in transparency and accountability.

Below we present the panel’s findings, along with some well-deserved comments made by them.

Our judging panel

The PwC Tax Transparency Framework 

Many organisations consider their tax disclosures in terms of “for whom and for what purpose” they are reporting—moving beyond a tick-the-box approach. There is no right way to do this. What works depends on a company’s geography, sector, and other factors. Different businesses will come to different conclusions about what to disclose and when, all in the name of building trust.

Our goal is to help companies navigate the complexity of tax transparency and turn it into something practical. With this in mind, we closely monitor developments in voluntary tax reporting and regularly update the framework to stay aligned with global frameworks and best practice. We also ensure that our criteria are clear, consistent, and comparable.

The PwC Tax Transparency Framework is designed to help companies build a tax transparency strategy that works for them. In this publication, we share the results of our review of the top 100 JSE-listed by market capitalisation as of 31 December 2024, using the Framework as our lens.

We looked at annual reports, corporate social responsibility reports, annual financial statements, integrated reports, tax reports, sustainability reports, and other relevant publicly available information for the 2024 financial year. While we’ve aimed to include all relevant public data, we acknowledge that our sources may not be exhaustive.

The framework includes 43 broadly defined tax transparency criteria that reflect what we consider to be the basis of good practice in voluntary tax reporting. Companies can score up to a maximum of 80 points.

We assess companies across four key categories, outlined below.

We hope this report is a useful tool for companies developing their tax transparency narrative and preparing for new global standards and regulatory disclosures. If you’d like to explore ways to enhance your tax reporting and governance, we are here to help. On request, we can provide high-level feedback reports that benchmark your company’s voluntary tax disclosures against your peers.