Types of taxes

Question 1

Normal tax

Answer 1

Income tax- imposed by the Act

Question 2

Withholding tax

Answer 2

• Tax deducted at source.

- Debtor withholds tax from the amount owed to the creditor and the creditor is only paid the net amount.

Question 3

Turnover tax

Answer 3

-The tax imposed on micro-businesses with a turnover of R1 million/ less.

Question 4

Dividends tax

Answer 4

Tax paid at a fixed rate of 20% on the amount of any dividend paid by a company

Question 5

Donations tax

Answer 5

Tax is imposed on the transfer of wealth and not on income. Donations tax is calculated at a fixed rate of 20%.

Question 6

Value-Added Tax (VAT)

Answer 6

Tax levied at 15%on the purchase of goods and services. It requires tax-inclusive pricing.

Question 7

Transfer Duty

Answer 7

Tax levied on the value of property acquired.

Question 8

Estate Duty

Answer 8

Tax levied on the net value of the estate of a deceased person at a fixed rate of 20% allowing an abatement of R1.5 million against the net value of the estate.

Question 9

Securities transfer tax

Answer 9

Tax levied on the purchase/ transfer of securities at a value of 25%

Question 10

Customs taxes

Answer 10

Taxed Imposed on the importation of goods into a specific territory.

Question 11

Excise taxes

Answer 11

The tax imposed on goods consumed and manufactured in South Africa. Also known as sin tax, for e.g. tobacco/alcohol.

Question 12

Unemployment insurance contributions

Answer 12

Amount contributed by the employee is deducted from the employee’s gross remuneration at a 1% tax levy.