MultiChoice Records Decline in Tax Payments for 2025
Leading pay-TV operator MultiChoice has revealed that it paid about $538.4 million in taxes during its 2025 financial year. The figure marks a 22.7% reduction from the $661 million paid in 2024.
The company said the year-on-year decline was largely driven by VAT refunds within its South African business, following changes to tax rules governing digital and electronic services.
Regulatory Changes Trigger VAT Refunds
MultiChoice explained that amendments to electronic services legislation in South Africa required many non-resident content providers to register locally for VAT. As a result, the group received VAT refunds that significantly lowered its overall tax contribution for the year.
The broadcaster noted that its tax contribution figure includes all material cash taxes, both paid directly and collected on behalf of government authorities.
How the $538 Million Tax Figure Breaks Down
The company provided a detailed breakdown of its total tax contribution:
- $299.7 million — taxes incurred and paid directly by the group
- $238.7 million — taxes collected on behalf of tax authorities
Taxes paid directly include corporate income tax, property-related taxes, and social security contributions. Taxes collected include Pay-As-You-Earn (PAYE) in South Africa, as well as indirect taxes such as VAT.
MultiChoice Emphasises Tax Governance and Compliance
According to MultiChoice, its group tax policy outlines a consistent framework for managing tax obligations across all operating regions.
“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 this approach ensures compliance with local tax laws while safeguarding the group’s commercial interests and corporate reputation.
South Africa and the Netherlands Receive the Largest Tax Shares
From a regional perspective, South Africa remained the largest recipient of MultiChoice’s tax payments in 2025, accounting for 42%, or approximately $226.4 million.
This was followed by the Netherlands, which received 27%, equivalent to about $145.4 million. MultiChoice noted that significant withholding taxes and VAT or sales taxes from its Rest of Africa operations are channelled through the Netherlands.
Within South Africa, corporate income tax made up 70% of the total, while employees’ income taxes accounted for 31%. The combined figure exceeds 100% because VAT refunds, representing 5% of the tax bill, were included in the calculation.
Nigeria Emerges as Third-Largest Tax Market
Nigeria ranked as MultiChoice’s third-largest tax jurisdiction, contributing 5% of total tax payments, or roughly $26.9 million. This was driven mainly by sales and consumption taxes.
The group also highlighted that it paid substantial customs and excise duties related to the importation of decoder hardware and other equipment into Nigeria during the year.
Effective Tax Rate Elevated by Regional Losses
For the 2025 financial year, MultiChoice reported an effective tax rate of 66%, calculated by dividing total tax paid by total group income. The company attributed the unusually high rate to loss-making operations across its Rest of Africa markets, which reduced taxable income while certain tax obligations remained fixed.
Conclusion
Although MultiChoice’s overall tax contribution declined in 2025, the company stressed that the reduction was largely the result of VAT refunds and regional operating losses rather than lower compliance. South Africa continued to receive the largest share of taxes, followed by the Netherlands and Nigeria, highlighting MultiChoice’s ongoing fiscal significance across its key markets.
