ECIC AR 2024 9TH

The table below shows the quantum of the misalignment from inception. The analysis is performed from 2009. Prior to that period, ECIC was using Rands as its operating currency and as a result, there was no misalignment between the profit before tax and the tax charge.

R

T

O

C

P

R

X

E

E

D

I T

I N

S

U

E

R

S

A

16 YOUR EXPORT RISK PARTNER

N

T

C

A

E

B

C

L I

O

S

R P O R A T I

H E D

I N

O

N

2

O

0

F

0

S

1

O

U

T

H

A

F

R

I

D

C

T

A

L

S

C

O

Tax on forex movements Table 2: Tax misalignment

Report 2024

Integrated

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Total

Forex on USD accounts Forex on Rand accounts

-217 798 205 631 157 657 -252 749 -405 418 -361 524 -353 392 -501 611 241 850 360 795 -582 513 -347 899 408 754

65 431 -611 631 -191 384 -2 385 801

-3 651

-82 834

-25 957 37 238 132 121 108 443 282 313 442 932 -190 397 -173 389 367 805 727 080 -834 060 -108 202 902 479 394 417 1 976 338

Less forex on Afreximbank Taxable forex movements Forex included in the tax computation Forex not allowed as a deduction

-

-

-

-

-

-

-

-

- 100 748 -119 735 -149 260 116 757

14 476 -132 886

- -169 900

-3 651

-82 834

-25 957

37 238 132 121 108 443 282 313 442 932 -190 397

-72 641 248 070 577 820 -717 303

-93 726 769 593 394 417 1 806 438

3 651

82 834

25 957

-37 238 -132 121 -108 443 -282 313 -442 932 190 397

72 641 -248 070 -577 820 717 303

93 726 -769 593 -394 417 -1 806 438

-217 798 205 631 157 657 -252 749 -405 418 -361 524 -353 392 -501 611 241 850 360 795 -582 513 -347 899 408 754

65 431 -611 631 -191 384 -2 385 801

(Over)/Under forex movements -214 147 288 465 183 614 -289 987 -537 539 -469 967 -635 705 -944 543 432 247 433 436 -830 583 -925 719 1 126 057 159 157 -1 381 224 -585 801 -4 192 239

Tax rate

28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 27% 27%

(Over)/Under tax payments done

-59 961

80 770

51 412 -81 196 -150 511 -131 591 -177 997 -264 472 121 029 121 362 -232 563 -259 201 315 296

44 564 -372 930 -158 166 -1 154 157

Effective tax rate on USD accounts 76,91% 22,12% 21,18% 45,71% 76,48% 80,82% 75,57% 104,98% -11,80% 14,24% 96,09% 96,70% 8,75% -19,97% 3,02% 16,54% 73,41% Translation effect -56,90% 18,68% 5,81% -21,00% -51,06% -54,38% -49,35% -77,03% 3,42% 12,89% -67,24% -69,64% 18,12% -46,03% 108,20% 504,69% -41,78% Effective tax rate on Rand accounts 20,01% 40,79% 26,99% 24,71% 25,42% 26,44% 26,22% 27,95% -8,38% 27,13% 28,85% 27,06% 26,87% -66,00% 111,22% 521,23% 31,62%