TAX1501/102/3/2022
Tutorial Letter 102/3/2022
TAXATION OF SALARIED PERSONS
TAX1501
Both semesters
Department of Taxation
Bar code
, 2
© 2022 University of South Africa
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
TAX1501/102/3/2022
60169338
IMPORTANT INFORMATION
Please register on the online platform, activate your myLife e-mail address, and ensure that you have
regular access to the TAX1501-22-S1 OR TAX1501-22-S2 module site, depending on which
semester you are registered for.
Note: This is an online module; therefore, your module is available on the online platform.
, 3 TAX1501/102
CONTENTS
Page
1. WELCOME MESSAGE ........................................................................................................... 5
1.1 myLife e-mail address ............................................................................................................. 6
1.2 Contact details ......................................................................................................................... 8
1.3 Prescribed textbook ................................................................................................................. 8
1.4 Tutorial letters .......................................................................................................................... 8
1.5 Assessments ........................................................................................................................... 8
1.6 Specific outcomes and assessment criteria ............................................................................. 8
1.7 Plagiarism ................................................................................................................................ 8
1.8 Study plan................................................................................................................................ 8
2. Frequently asked questions (FAQs) ..................................................................................... 9
2.1 Study material .......................................................................................................................... 9
2.2 Student support services........................................................................................................ 10
2.3 Studying in an online learning environment ............................................................................ 10
3. LEARNING UNIT 0: Things to know before commencing with your studies.................... 11
3.1 Using the on line platform and the tools on the online platform .............................................. 12
Announcements ................................................................................................................... 12
Discussion Forums .............................................................................................................. 12
Learning Units ..................................................................................................................... 12
3.2 E-Tutors ................................................................................................................................. 12
3.3 How to study this subject ....................................................................................................... 12
LEARNING UNIT 1 ........................................................................................................................... 16
1.1 Background............................................................................................................................ 17
1.2 National budget...................................................................................................................... 18
1.3 South African Revenue Service (SARS) ................................................................................ 21
1.4 Basis for and types of taxation ............................................................................................... 24
1.5 Interpretation of tax law and legal remedies ........................................................................... 26
LEARNING UNIT 2 ........................................................................................................................... 32
2.1 Background............................................................................................................................ 33
2.2 Earning a salary ..................................................................................................................... 33
2.3 IRP5 certificate ...................................................................................................................... 35
2.4 Persons liable for income tax ................................................................................................. 36
2.5 Registertration as a taxpayer with SARS ............................................................................... 37
2.6 Income tax returns ................................................................................................................. 38
2.7 Income tax assessments........................................................................................................ 40
2.8 Framework for tax calculations............................................................................................... 41
LEARNING UNIT 3 ........................................................................................................................... 62
3.1 Background............................................................................................................................ 63
3.2 Definition of gross income ...................................................................................................... 65
3.3 Definition of resident .............................................................................................................. 65
3.4 Summary of requirements for gross income ........................................................................... 71
3.5 Spesific inclusions in gross income ........................................................................................ 72
3.6 Exempt income ...................................................................................................................... 73
LEARNING UNIT 4 ........................................................................................................................... 86
4.1 Background............................................................................................................................ 87
4.2 Definition of general deduction formula .................................................................................. 90
4.3 Carrying on a trade ................................................................................................................ 91
4.4 Summary of the requirements for the general deduction formula ........................................... 92
4.5 Prohibited deductions ............................................................................................................ 95
, 4
Dear Student
This document will provide you with insight into the kind of information that is being presented on
Online platform, the official learning management system of the University.
This document includes the following information:
▪ welcome message on the home page
▪ frequently-asked questions (FAQs)
▪ learning units
Information that is intended to help you getting started with your online studies is available in this docu-
ment.
The module is delivered online, which means it is available online on myModules. myModules is an online
platform for you to communicate with other students, lecturers, your e-tutor, and administration depart-
ments at Unisa. You may also access or download your study material and other resources. Familiarise
yourself with the online platform and the way it functions before commencing with your studies.
We wish you every success with your studies in taxation. Make the most of your opportunity to learn about
this dynamic and practical subject. We know that if you work through the study guide and all the examples,
you will be successful in this module.
Regards
TAX1501
Tutorial Letter 102/3/2022
TAXATION OF SALARIED PERSONS
TAX1501
Both semesters
Department of Taxation
Bar code
, 2
© 2022 University of South Africa
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
TAX1501/102/3/2022
60169338
IMPORTANT INFORMATION
Please register on the online platform, activate your myLife e-mail address, and ensure that you have
regular access to the TAX1501-22-S1 OR TAX1501-22-S2 module site, depending on which
semester you are registered for.
Note: This is an online module; therefore, your module is available on the online platform.
, 3 TAX1501/102
CONTENTS
Page
1. WELCOME MESSAGE ........................................................................................................... 5
1.1 myLife e-mail address ............................................................................................................. 6
1.2 Contact details ......................................................................................................................... 8
1.3 Prescribed textbook ................................................................................................................. 8
1.4 Tutorial letters .......................................................................................................................... 8
1.5 Assessments ........................................................................................................................... 8
1.6 Specific outcomes and assessment criteria ............................................................................. 8
1.7 Plagiarism ................................................................................................................................ 8
1.8 Study plan................................................................................................................................ 8
2. Frequently asked questions (FAQs) ..................................................................................... 9
2.1 Study material .......................................................................................................................... 9
2.2 Student support services........................................................................................................ 10
2.3 Studying in an online learning environment ............................................................................ 10
3. LEARNING UNIT 0: Things to know before commencing with your studies.................... 11
3.1 Using the on line platform and the tools on the online platform .............................................. 12
Announcements ................................................................................................................... 12
Discussion Forums .............................................................................................................. 12
Learning Units ..................................................................................................................... 12
3.2 E-Tutors ................................................................................................................................. 12
3.3 How to study this subject ....................................................................................................... 12
LEARNING UNIT 1 ........................................................................................................................... 16
1.1 Background............................................................................................................................ 17
1.2 National budget...................................................................................................................... 18
1.3 South African Revenue Service (SARS) ................................................................................ 21
1.4 Basis for and types of taxation ............................................................................................... 24
1.5 Interpretation of tax law and legal remedies ........................................................................... 26
LEARNING UNIT 2 ........................................................................................................................... 32
2.1 Background............................................................................................................................ 33
2.2 Earning a salary ..................................................................................................................... 33
2.3 IRP5 certificate ...................................................................................................................... 35
2.4 Persons liable for income tax ................................................................................................. 36
2.5 Registertration as a taxpayer with SARS ............................................................................... 37
2.6 Income tax returns ................................................................................................................. 38
2.7 Income tax assessments........................................................................................................ 40
2.8 Framework for tax calculations............................................................................................... 41
LEARNING UNIT 3 ........................................................................................................................... 62
3.1 Background............................................................................................................................ 63
3.2 Definition of gross income ...................................................................................................... 65
3.3 Definition of resident .............................................................................................................. 65
3.4 Summary of requirements for gross income ........................................................................... 71
3.5 Spesific inclusions in gross income ........................................................................................ 72
3.6 Exempt income ...................................................................................................................... 73
LEARNING UNIT 4 ........................................................................................................................... 86
4.1 Background............................................................................................................................ 87
4.2 Definition of general deduction formula .................................................................................. 90
4.3 Carrying on a trade ................................................................................................................ 91
4.4 Summary of the requirements for the general deduction formula ........................................... 92
4.5 Prohibited deductions ............................................................................................................ 95
, 4
Dear Student
This document will provide you with insight into the kind of information that is being presented on
Online platform, the official learning management system of the University.
This document includes the following information:
▪ welcome message on the home page
▪ frequently-asked questions (FAQs)
▪ learning units
Information that is intended to help you getting started with your online studies is available in this docu-
ment.
The module is delivered online, which means it is available online on myModules. myModules is an online
platform for you to communicate with other students, lecturers, your e-tutor, and administration depart-
ments at Unisa. You may also access or download your study material and other resources. Familiarise
yourself with the online platform and the way it functions before commencing with your studies.
We wish you every success with your studies in taxation. Make the most of your opportunity to learn about
this dynamic and practical subject. We know that if you work through the study guide and all the examples,
you will be successful in this module.
Regards
TAX1501
