Popular pay-TV operator MultiChoice has disclosed that it paid approximately $538.4 million in tax during the 2025 financial year. This represents a 22.7% decline compared to the $661 million paid in 2024.

The company attributed the reduction primarily to VAT refunds received in its South African operations, following regulatory changes affecting non-resident digital service providers.

VAT Refunds Drive Decline in Tax Contribution

According to MultiChoice, changes to electronic services legislation in South Africa required many non-resident content providers to register for VAT locally. This shift resulted in VAT refunds that materially reduced the group’s overall tax contribution for the year.

The company explained that its reported tax contribution reflects all material cash taxes paid and collected by the group during the period.

Breakdown of Taxes Paid and Collected

Of the total $538.4 million tax contribution:

• $299.7 million represented actual taxes incurred and paid by the group
• $238.7 million consisted of taxes collected on behalf of authorities

The actual taxes paid include corporate income tax, property taxes, and social security contributions. The taxes collected on behalf of governments include Pay-As-You-Earn (PAYE) in South Africa and consumption taxes such as VAT.

Tax Governance and Compliance Framework

MultiChoice stated that its tax policy provides a structured framework for managing tax obligations across all jurisdictions in which it operates.

“Through our group tax policy, we have established a formal approach to tax risk management and a tax governance structure that is commonly understood across MultiChoice,” the company said.

It added that the group applies relevant tax legislation in each market to ensure appropriate contributions are made to local economies, while also protecting its brand and reputation.

South Africa and the Netherlands Lead Tax Beneficiaries

In terms of geographic distribution, South Africa accounted for the largest share of MultiChoice’s 2025 tax contribution:

• South Africa: 42% (approximately $226.4 million)
• Netherlands: 27% (approximately $145.4 million)

MultiChoice noted that significant withholding taxes and VAT or sales taxes are paid across its Rest of Africa operations, largely routed through the Netherlands.

Within South Africa, 70% of the tax contribution was corporate tax, while 31% related to employees’ income taxes. The total exceeds 100% because VAT refunds, equivalent to 5% of the tax bill, were included in the breakdown.

Nigeria Ranks Third in Tax Contributions

Nigeria was the third-largest contributor, accounting for 5% of the total tax paid, or approximately $26.9 million. This was driven mainly by sales taxes.

MultiChoice also disclosed that it incurred significant customs and excise duties on the importation of decoder hardware and related devices into Nigeria during the year.

Effective Tax Rate Reaches 66%

For the year under review, MultiChoice reported an effective tax rate of 66%, calculated as total tax paid divided by total income across the group.

According to the company, the unusually high rate was largely due to loss-making operations across its Rest of Africa markets, which reduced taxable income while fixed tax obligations remained.

Conclusion

While MultiChoice’s total tax contribution declined sharply in 2025, the company maintained that the change was largely technical, driven by VAT refunds and regional losses rather than reduced compliance. South Africa remained the group’s largest tax beneficiary, followed by the Netherlands and Nigeria, underscoring the broadcaster’s continued fiscal footprint across its core markets.