We created this ever-growing list of acronyms and accounting terms commonly used by Tax and Accounting Professionals to help business owners clear up some confusion. Feel free to bookmark this page and refer back to it whenever you need to.
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.
Annual Financial Statements
A form submitted to CIPC in the month that the company was registered, giving CIPC updated information, contact details etc. of the company.
Capital Gains Tax
Companies and Intellectual Property Commission
Compensation for Occupational Injuries and Diseases
Tax pai.d by companies on their taxable income
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.
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.
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.
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.
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.
Injured On Duty
An IRP5 is a certificate of various earnings and fringe benefits. It includes the tax paid and taxpayers details for any given tax year.
Non-Profit Organization is one which is not driven by profit but by dedication to a given cause that is the target of all income beyond what it takes to run the organization.
Pay As You Earn
Estimated tax payable on estimated taxable income, typically paid at the end of August and February each year.
Quick books
South African Institute of Professional Accountants
South African Revenue Services
Skills Development Levy
The tax year for individuals is 1 March to 28 February the following year.
Trial Balance is a summary list of income, expenses, assets, liabilities and equity.
A tax levied on the value of any property acquired by any person by way of a transaction or in any other way.
Unemployment Insurance Fund
Value Added Tax
We put our heads together to make this list super helpful for you, if you stumble across something that you’d like us to add to this list, please let us know
