Your comment shows you know nothing about Taxation and business. Vodacom sa does not directly own the shares it owns the shares through a whole new entity Vodacom Kenya Ltd which is subject to corporate tax and it's employees will also pay income tax.
The individual shareholders will also pay income tax on their earnings and anytime a transaction is done on the shares eg when vodafone sold the shares to Vodacom they paid a capital gains Tax.
GOK holds 35% of safaricom, Vodacom Kenya Ltd 35%, Vodafone 5%, the rest is held by individuals and other kenyan companies at 25%
Geza Ulole
And a half of that money goes to Vodacom SA!
Geza, you should also remember, aside fro the dividends that GOK gets from Safcom for its 35% ownership, GoK also earns alot of Tax revenue from Safcom, Infact, Tax earning are more than what vodacom gets in Dividends!
Last year, Safcom pre-tax profit was $800m, but profit after tax was $550m.... This profit after tax is what is shared with shareholders.
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The Treasury has emerged as the biggest beneficiary of Safaricom’s runaway profitability, with initial calculations showing it will walk away with half of the Sh80 billion pre-tax profit that the telecoms operator made.
The telecoms operator is set to pay the Treasury Sh40 billion in taxes and dividends for the financial year ended March 2018, setting a new record in the amount of money a single corporation has contributed to the Exchequer in Kenya.
Safaricom yesterday announced a 14.1 per cent increase in net profit to Sh55.3 billion for the year ended March 31, having grown its total revenue by 9.8 per cent to Sh233.7 billion, a record in corporate Kenya. Safaricom’s filings show that it has
paid Sh24.62 billion in taxes for the financial year in review.
Dividends
The telecoms operator said it intends to pay shareholders a dividend of Sh1.10 a share, up from Sh0.97 the previous financial year, taking the total payout to shareholders this year to Sh44.1 billion from Sh38.9 billion paid out the previous year.
This means that the government, which holds a 35 per cent stake in the company or 14.02 billion shares,
will walk away with Sh15.42 billion in dividends.
Safaricom paid the Treasury Sh22.2 billion in taxes and a dividend of Sh13.6 billion the previous year.
South Africa’s telecoms operator
Vodacom, which holds a 35 per cent stake in Safaricom, is also waiting for a Sh15.42 billion dividend cheque. The UK’s Vodafone, the parent company, is set to earn Sh2.2 billion from its five per cent stake in Safaricom.
Treasury gets Sh40bn Safaricom pay cheque
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So, Last year, Vodacom(35%) + Vodafone(5%) recieved KSH 15.42B + 2.2B = $17.62 Billion (
Roughly $170 million USD) in dividends from Safaricom. Out o a total profit of $550 Million.
In the same year, GoK(35%) recieved ksh 15.42B + 24.62B (from taxes) = 40.04 (
roughly $400 million USD) from Safaricom.
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Kwahivyo kwa kifupi, GoK and Kenyan sharholders are the biggest profitiers of Safaricom, It benefits Kenya more than any foreign entity.
