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South Africa's banks contributed R90.45 billion to public finances in 2024 — but the full story goes far beyond corporate income tax.
PwC, in collaboration with the Banking Association South Africa (BASA), presents new insights into the full fiscal and economic contribution of South Africa’s banking sector.
This publication provides a comprehensive view of the taxes banks pay, and the billions they collect and administer on behalf of government. Banks perform a critical intermediary role within the tax system on behalf of SARS. When taxes administered through third‑party appointments are included, the sector’s total fiscal footprint rises to R95.85bn—reflecting a broader contribution that extends beyond the global PwC TTC methodology.
The findings reveal a sector that is not only one of the country's most reliable revenue sources, but also a cornerstone of fiscal stability, employment, and economic growth.
Key insights from the report
- Eight banks representing almost two‑thirds of the financial services sector on the JSE contributed R90.45bn in taxes in 2024. This equals 4.88% of all government tax revenue and highlights their exceptional fiscal productivity.
- Banks are major tax collectors, not just taxpayers. They collected R56.79bn on behalf of government (like PAYE from employees), in addition to R33.66bn in their own taxes borne.
- Corporate income tax is just the tip of the iceberg. For every R1 paid in company tax, banks paid another R2.66 in other taxes like VAT, payroll, and property taxes.
- Banks punch above their weight on employment taxes. While employing just 1.27% of the workforce, they contributed 4.60% of all personal income tax collected nationally.
- R6.99bn in VAT that banks can never claim back, because core banking services are VAT exempt, most VAT paid on inputs becomes a permanent cost to the sector.
- More than a third of the value banks create goes to government. For every R100 of economic value created, R34.79 flows to public finances through taxes and levies.
- R3.4bn in regulatory levies—on top of taxes. Banks fund the infrastructure that keeps the financial system safe.
- Tax compliance costs R589.3m per year. This requires over 500,000 hours of work annually, equivalent to 242 full-time employees working exclusively on tax‑related tasks.
- R5.40bn recovered for SARS through third-party appointments, at an uncompensated cost of R1.39 per R100 collected, highlighting banks' hidden contribution to revenue administration.
- 87.5% of participating banks already use TTC data in engagements with policymakers and SARS. Evidence‑based TTC data enables constructive engagement, especially on high‑friction areas.
These insights offer a clear picture of the banking sector’s contribution to South Africa’s economy and public finances, supporting informed engagement between industry, policymakers, and regulators.
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Carla Perry
Associate Director | Tax Reporting and Governance, PwC South Africa
Tel: +27 (0) 78 735 9393
Esmarie Viljoen
Director | Corporate and International Tax - Financial Services Industry, PwC South Africa
Tel: +27 (0) 11 797 4619
Kerneesha Naidoo
Manager | Tax Reporting and Governance, PwC South Africa
Tel: +27 (0) 83 627 3956