Naspers Contributes Over R2 Billion in Taxes to South Africa's Economy

Despite global economic headwinds and decreased profits for the year, South African multinational Naspers has showcased its steadfast commitment to its home country by delivering a sizeable tax payment to the nation's coffers. In the financial year ending March 31, 2024, Naspers made a substantial fiscal contribution, both directly and indirectly, by paying $118.7 million (approximately R2.2 billion) in taxes within South Africa.

Naspers, established in 1915 and transformed under the visionary leadership of Koos Bekker, is a stalwart of technological investment and operation on a global stage. Its impressive roster of South African investments includes leading e-commerce platforms Takealot, Mr D Food, and fashion retailer Superbalist, alongside AutoTrader, Property24, PayU, and Media24—South Africa’s premiere print and digital media operation. As the majority shareholder in Prosus, which has a primary listing on Euronext Amsterdam, Naspers conducts significant international business.

The tech titan's worldwide influence and healthy profit figures, partly driven by income from Tencent share disposals and dividends, have encountered a reduction, falling from US$9.954 billion to US$6.565 billion. However, the new head of both Nasters and Prosus, CEO Fabricio Bloisi, remains optimistic about future potential and the positive direction of their expansive portfolio.

It is not merely through direct expansion and technological endeavors that Naspers makes a mark. As affirmed in their financial disclosure, the group recognizes the critical importance of tax payments as a pillar of economic contribution to the societies in which it is ingrained. This reflects a responsible corporate philosophy that values low appetite for tax risk and prioritizes sound operational motives over artificial tax advantage engineering.

Globally, the combined fiscal footprint of Naspers and Prosus is significant, amounting to US$1.3 billion (around R24 billion) in taxes. An illustration of Naspers’ international tax footprint can be gaarded by their normalised effective tax rate of 26.1%. While South Africa ranks fifth on their list, behind countries like Brazil and Romania, the contribution is nevertheless essential to sustaining and stimulating the South African economy.

The breakdown of Naspers’ South African tax bill is revealing and includes corporate income and withholding taxes, payroll taxes, social security contributions, as well as VAT, service, and consumption taxes. It is essential to note that, despite subtle decreases from the year prior, the amounts collected support various public services and sectors—a testament to Naspers' role in sustaining the economic ecosystem of South Africa.

Naspers' fiscal contributions underscore not only its position as a tech behemoth but also as an integral and constructive part of South Africa's economic landscape. With continuous scrutiny over multinationals and their tax strategies, Naspers’ detailed disclosure exemplifies transparency and a commitment to abiding not only by the letter of tax laws but also by their spirit, ensuring that they contribute fairly and meaningfully to societal development.