Chapter 1: Introduction to South African Income Tax
SAICA-Level Flashcards based on:
- SAICA Student Handbook 2025/2026 Vol 3
- Silke: South African Income Tax 2026
- Tax Workbook 2026
Flashcard 1
Front: What is the purpose of Income Tax in South Africa?
Back: Income tax is imposed by government to raise revenue for public expenditure and
economic development. Governed primarily by the Income Tax Act 58 of 1962 and
administered by SARS.
Flashcard 2
Front: Define “taxpayer” in terms of the Income Tax Act.
Back: A taxpayer is any person chargeable with tax under the Income Tax Act. This includes
natural persons, companies, trusts, insolvent estates and deceased estates.
Flashcard 3
Front: What is a year of assessment for individuals?
Back: For natural persons, the year of assessment runs from 1 March to the last day of
February.
Flashcard 4
Front: Differentiate between resident and non-resident taxpayers.
Back: Residents are taxed on worldwide income, while non-residents are taxed only on
South African sourced income.
Flashcard 5
Front: Explain the ordinarily resident test.
Back: A person is ordinarily resident where South Africa is regarded as their real home and
the country to which they naturally return.
SAICA-Level Flashcards based on:
- SAICA Student Handbook 2025/2026 Vol 3
- Silke: South African Income Tax 2026
- Tax Workbook 2026
Flashcard 1
Front: What is the purpose of Income Tax in South Africa?
Back: Income tax is imposed by government to raise revenue for public expenditure and
economic development. Governed primarily by the Income Tax Act 58 of 1962 and
administered by SARS.
Flashcard 2
Front: Define “taxpayer” in terms of the Income Tax Act.
Back: A taxpayer is any person chargeable with tax under the Income Tax Act. This includes
natural persons, companies, trusts, insolvent estates and deceased estates.
Flashcard 3
Front: What is a year of assessment for individuals?
Back: For natural persons, the year of assessment runs from 1 March to the last day of
February.
Flashcard 4
Front: Differentiate between resident and non-resident taxpayers.
Back: Residents are taxed on worldwide income, while non-residents are taxed only on
South African sourced income.
Flashcard 5
Front: Explain the ordinarily resident test.
Back: A person is ordinarily resident where South Africa is regarded as their real home and
the country to which they naturally return.
