Tax Jargon A-Z

“The determination of the amount of tax payable by a taxpayer.”

“SARS works out exactly how much tax you owe (or are owed) after looking at your return.”

“Tax on a capital gain arising from the disposal of an asset.”

“If you sell something (property, shares) for more than you paid, you pay tax on the profit.”

“A tax on shareholders at a rate of 20% on dividends received.”

“When a company pays you a share of its profits, 20% goes to SARS before it reaches you.”

“SARS electronic filing platform for the submission of returns and declarations.”

“The SARS website where you log in to file your tax return, check your status, and manage your tax affairs online.”

“A certificate issued by the employer reflecting remuneration paid and deductions made.”

“A summary your employer gives you at year-end showing what you earned and what tax was taken out.”

“A certificate issued by financial institutions reflecting interest and other investment income.”

“A letter from your bank or investment company showing how much interest or investment income you earned.”

“The official document issued by SARS reflecting the result of the assessment.”

“SARS's final answer after checking your tax return — it says whether you get money back or owe more.”

“The annual income tax return to be completed by an individual.”

“The yearly form where you declare your income and claim deductions. Most of it is pre-filled by SARS.”

“A rebate in respect of fees paid to a registered medical scheme.”

“A monthly tax discount you get for being on a medical aid — R364 for yourself, R364 for the first dependant, R246 for each additional dependant (2024/25).”

“A formal dispute lodged against an assessment issued by SARS.”

“If you disagree with your tax assessment, you can formally challenge it within 30 business days.”

“Employees' tax deducted by an employer from an employee's remuneration.”

“Tax your employer takes from your salary each month and sends to SARS on your behalf.”

“A method of paying income tax in advance, to ensure tax is not all payable on assessment.”

“If you earn income that isn't taxed at source (freelancing, rental income), you pay SARS twice a year in advance estimates.”

“An amount deducted from normal tax payable to determine tax liability.”

“An automatic discount on your tax bill. Everyone gets the primary rebate; older taxpayers get extra.”

“Deduction in respect of contributions to a retirement annuity fund.”

“Money you put into a retirement annuity reduces your taxable income — up to 27.5% of your income, capped at R350,000 per year.”

“A levy payable by employers to promote learning and development in South Africa.”

“A 1% charge on your total payroll that your employer pays to fund workplace training programmes.”

“A simplified form of employees' tax, historically applied to lower-income earners.”

“An old system (phased out) where lower-income workers' tax was considered final — no return needed. Now replaced by the normal PAYE system.”

“An instruction by SARS to an employer or fund on the rate of tax to apply to a specific payment.”

“A special instruction from SARS telling your employer or retirement fund exactly how much tax to deduct from a lump-sum payment like a pension payout or retrenchment package.”

“A digital confirmation that a taxpayer's tax affairs are in order.”

“A digital certificate proving you are up to date with SARS. You need it when you apply for government tenders, emigration, or foreign investment allowances.”

“Contributions towards the Unemployment Insurance Fund as prescribed by the UIF Act.”

“1% is deducted from your salary and your employer matches it — this funds unemployment benefits if you lose your job.”

“An indirect tax on the consumption of goods and services in the economy.”

“A 15% tax added to the price of most things you buy. Some basics like bread, milk, and eggs are zero-rated.”