Principles of taxation & Taxation in SA Flashcards
1
Q
Proportional tax
A
Tax levied at a fixed rate on an amount of income earned.
2
Q
Progressive tax
A
The rate used to calculate the amount of tax is determined by a person’s income.
3
Q
Regressive tax
A
The tax decreases with the increase of a person’s income.
4
Q
Marginal tax rate
A
the tax rate applied if the tax base increases by R1
5
Q
Statutory tax rate
A
The tax rate imposed on the tax base as determined in accordance with relevant legislation.
6
Q
Average tax rate
A
Total tax liability/Total tax base
7
Q
Effective tax rate
A
Total tax liability /total profit or income.
