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Acronyms Used in Tax and Accounting

We found a list of acronyms and accounting terms commonly used by Tax Consultants and Accounting Professionals. Feel free to refer back to this page whenever you need to.

Accounting Officer

An accounting officer is a person who meets the qualification requirements as detailed in section 60 of the Close Corporations Act, 1984 and as a result, may issue an accounting officer and other reports on the financial statements and information of close corporations and other entities.

AFS

Annual Financial Statement

Annual Return

A form submitted to CIPC in the month that the company was registered - Updating a CIPC.

CGT

Capital Gains Tax

CIPC

Companies and Intellectual Property Commission

COID

Compensation for Occupational Injuries and Diseases

Corporate Income Tax

Tax paid by companies on their taxable income

Dividends Tax

Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to the individuals.

Donations Tax

For resident individuals, donations are subject to Donations Tax of 20% on the first R30 million of donations made during a tax year and then at the rate of 25% on donations exceeding R30 million, with an annual exemption of up to R100,000 of the value of all donations made during the tax year.

ETI

Employment Tax Incentive is an incentive that was launched by SARS with the aim of encouraging employers to hire young job seekers. It reduces the cost of hiring young people by reducing the amount of PAYE owed by the employer to SARS without affecting the employees’ wages.

Fringe Benefits

An employee “fringe benefit” is a form of pay other than money for the performance of services by employees i.e. medical aid paid on his behalf, use of company car/house/holiday vacation etc.

Independent Reviewer

An Independent Review is an alternative assurance engagement where the independent reviewer provides limited assurance on a set of annual financial statements when compared to that of the reasonable assurance provided by the external auditor.

IOD

Injured On Duty

IRP5

An IRP5 is a certificate of various earnings and fringe benefits. It includes the tax paid and taxpayers details for any given tax year.

NPO

Non-Profit Organization - driven by dedication to a given cause that is the target of all income beyond what it takes to run the organization.

PAYE

Pay As You Earn

Provisional Tax

Estimated tax payable on estimated taxable income, typically paid at the end of August and February.

QB

Quick books

SAIPA

South African Institute of Professional Accountants

SDL

Skills Development Levy

Tax Year

The tax year for individuals is 1 March to 28 February the following year.

TB

Trial Balance is a summary list of income, expenses, assets, liabilities and equity.

Transfer Duty

A tax levied on the value of any property acquired by any person by way of a transaction or in any other way.

UIF

Unemployment Insurance Fund

VAT

Value Added Tax

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