Tax Reference Guide

South African Tax Glossary

Navigate the complexities of South African tax law with our easy-to-understand glossary of common terms.

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Capital Gains Tax (CGT)

A tax levied on the profit made from the disposal of a capital asset.

PAYE (Pay As You Earn)

The system whereby employers are required to deduct income tax from their employees' salaries.

Provisional Tax

A method of paying income tax in advance to ensure the taxpayer does not have a large tax debt on assessment.

Value-Added Tax (VAT)

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

Turnover Tax

A simplified tax system for micro-businesses with a qualifying turnover of up to R1 million per year.

Input VAT

VAT that a vendor pays on goods and services acquired for the business.

Output VAT

VAT that a vendor charges on the sale of goods and services.