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Tax terms got you tongue tied? Use this glossary of South African tax terms to make everything clear

by , 06 May 2014
Whenever you read a SARS document about the tax your business must pay, there are countless terms you'll need to know. Sometimes it may even feel like you're trying to read a code or foreign language. But you don't have to feel like you need to go back to school to understand SARS' tax instructions. Simply use this glossary of tax terms to make everything clear.

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Glossary of SARS tax terms

SARS uses a lot of short hand terms in their tax instructions. These can be confusing and daunting for a first time taxpayer or even tax veterans sometimes. So here's an easy and straight forward glossary of some of the terms SARS loves to use:
'ATR' means Advanced Tax Ruling;
'CC' means Close Corporation; 
'CGT' means Capital Gains Tax; 
'CIT' means Corporate Income Tax
'Commissioner' means Commissioner for the South African Revenue Service; 
'PAYE' means Pay-As-You-Earn (Employees' tax); 
'RSA' means Republic of South Africa;
'SARS' means South African Revenue Service; 
'SBC' means small business corporation; 
'Schedule' means a Schedule to the Act 
'SDL' means skills development levy; 
'section' means a section of the Act; 
'SMME' means small, medium and micro enterprise; 
'STT' means securities transfer tax
'tax year' means year of assessment; 
'the Act' means the Income Tax Act 58 of 1962; 
'the TA Act' means the Tax Administration Act 28 of 2011; 
'the VAT Act' means the Value-Added Tax Act 89 of 1991; 
'UIF' means unemployment insurance fund; and
'VAT' means value-added tax
So which of these tax terms apply to your business tax?
Avoid costly tax issues
Don't pay another cent on expensive tax consultant or lawyer fees

Tax terms that may relate to your business tax

SARS uses most of these tax terms a lot but you'll probably only have to remember terms like: 'CIT', 'CC', 'SMME', 'Tax year', 'the TA Act', 'the VAT Act', 'the Act' and 'UIF' 
Terms like 'PAYE' relate to private tax brackets as opposed to your company taxes.
This means if you pay your employees taxes then you'll have to work with these terms. 
These terms are quite to use and remember, just keep this handy glossary close by and you'll have no trouble at all.

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