The National Budget Flashcards
What is a budget?
A budget is a future plan of the money you are expecting to come in, and a estimate of what you expect to spend
true or false, there are many people involved in national budget
true
Who is responsible for the national budget
The National Treasury
What month of each year does the national budget speech happen
The national budget speech happens in February
Who says the national budget speech
The minister of finance
what is The process of drawing up a national budget
answers in book
What is tax?
A compulsory contribution of money to the state revenue.
How many types of main tax is there?
two types
What are the two main types of tax
direct and indirect
What is direct tax?
Direct tax is when the tax is directly given to the person and the responsibility to pay the tax cannot be transferred to any one else
What is indirect tax?
Indirect tax allow the person to contribute the tax to someone else
What does the acronym VAT mean
Value Added Tax
What does Value added tax mean
VAT is paid on goods and services purchased. Which is then paid over to SARS.
Is VAT direct or indirect
Indirect
What is tax avoidance
Tax Avoidance is a legal way to avoid tax
What is Tax Evasion?
Tax evasion involves a person or business failing to declare income or profit. this means they are trying to evade paying the tax.
What is standard rated?
Standard rated is when VAT of 15% is levied.
What is zero rated items?
Zero rated items mean that they are enssential items that have zero added tax
What does the acronym PAYE mean?
Pay As You Earn
What is PAYE
Pay as you earn is tax that is paid by individuals who receive a salary, the higher your salary is the more tax you pay.
What is Capital Gains Tax
Tax paid on the profits made on the sale of a second immovable asset\house
What is Carbon Emissions tax
The tax used for petrol
What is Company tax
It is a fixed % on all net profit earned by registered companies.
what is custom duties?
Tax imported on goods.
