MultiChoice said it paid $538 million in tax in 2025, less than it paid in 2024

Popular Pay-TV company MultiChoice has revealed that it paid approximately $538.4 million in tax for the entire 2025. The figure represents a 22.7% decrease from the $661 million it paid in 2024. 

According to the company, the reduction in tax contribution was attributed to the VAT refunds received by its South African market. It noted that “following the introduction of Electronic Services legislation in SA, many non-resident content providers were required to register for VAT in South Africa.”

MultiChoice explained that the total tax contribution amount reflects all material cash taxes paid and collected by the group during the year. The actual tax paid amount, which is approximately $299.7 million, is the cash tax incurred and paid by the group. This includes corporate income tax, property taxes, and social security contributions. 

The remaining $238.7 million is categorised as taxes not incurred by the group, but collected on behalf of revenue authorities. This includes Pay-As-You-Earn in South Africa and sales taxes, such as VAT.

In the report, MultiChoice noted that its tax policy explained the framework guiding the management of taxes by all entities within the company. It added that the group is committed to adhering to all applicable laws and regulations while safeguarding its interests and the brand’s reputation.

“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.” 

“Based on this approach, we apply the relevant tax legislation and guidance in each jurisdiction to ensure appropriate tax contributions are made to the local economies,” the company said.

Also Read: Police seize $29,000 worth of illegal Multichoice streaming devices in Johannesburg raid.

South African market leads MultiChoice tax remittance 

In the breakdown of MultiChoice tax payout, South Africa was the biggest beneficiary during its 2025 financial year with 42% (approximately $226.4 million), followed by the Netherlands, which accounted for 27% (approximately $145.4 million).

“Significant withholding taxes as well as VAT/sales taxes are paid across the Rest of Africa in the Netherlands,” MultiChoice said. 

In the breakdown of the tax contribution to South Africa, the company said that 70% was corporate taxes, and 31% for employees’ income taxes. In explanation, MultiChoice said the percentages add up to more than 100% because it included its VAT refunds, amounting to 5% of its tax bill, in its breakdown. 

Nigeria was the third-largest territory for tax contributions, comprising 5% of the total (approximately $26.9 million), primarily due to sales taxes paid in the country.

In addition, the group noted that it incurred significant customs and excise duties on the importation of hardware devices into Nigeria.

For the Year in Review, MultiChoice said that its effective tax rate (total tax paid ÷ total income) across the group was 66%. According to the company, the effective tax rate was so high because of losses in its Rest of Africa market.

The post MultiChoice said it paid $538 million in tax in 2025, less than it paid in 2024 first appeared on Technext.