This glossary describes some of the terms used on the SARS website. While every effort has been made to present accurate and up-to-date definitions, this glossary should be used as an interpretive aid only and not as an authority. SARS will not be liable for any damages of whatsoever nature arising out of the use of, reference to or reliance on any of the definitions contained herein.
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A software package provided by SARS which has the functionality to create reconciliation documents in the prescribed formats and produce a ZipCentral file for submission purposes.

[email protected]™ Employer
A software package supplied by SARS which has the functionality to create reconciliation documents in the prescribed formats and produced an electronic file in ZipCentralFile format submission purposes.

Enterprise Business Enablement

Eastern Cape

Enforcement Centre

European Commission

Economic cost
The cost of an alternative that must be forgone to pursue a certain action. Put another way, the benefits that could have been received by taking an alternative action.
Electronic Data Interchange

Electronic Document Management System

A free, convenient and secure electronic channel for submission of tax returns and payments to SARS.

Electronic funds transfer (EFT) is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

Exempt Institution (e.g. approved Public Benefit Organisations).

Electric Filament Lamp
Non energy-saving light bulbs.

Eligible purchases
Purchases of distillate fuel for use as fuel for own primary production activities in farming, forestry and mining on land and in commercial fishing vessels, coasting vessels, offshore mining or in vessels owned by the NSRI or locomotives.

Emergency change (EM)
Emergency changes are changes that are requested to be implemented urgently into our environment. Change management needs to assess if it is really an emergency by evaluating the impact and risk that is the cause and whether it will be resolved by the requested change.


Monthly employer declaration form.

Employer reconciliation declaration form.

Tax certificate cancellation declaration form.

Reconciliation adjustment declaration form.

An employee for employees' tax purposes is defined as: Any person (other than a company) who receives remuneration or to whom remuneration accrues; Any person who receives remuneration or to whom remuneration accrues by reason of any services rendered by such person to or on behalf of a labour broker; Any labour broker; Any person or class or category of person whom the Minister of Finance by notice in the Government Gazette declares to be an employee for the purposes of this definition; Any director of a private company who is not otherwise included in terms of paragraph (a); Any personal service provider.

Employee tax certificate
A certificate in the form prescribed by the Commissioner which shows the remuneration paid or payable to the employee/former employee by the employer and the sum of amounts of Employees’ Tax deducted or withheld by the employer from such remuneration. The Employee Tax certificate format is prescribed on the: 1999 to 2007 format: IRP5 and IT3(a); and From 2008 format: IRP5/IT3 (a).

Employees' Tax
An amount of tax that an employer must deduct or withhold from remuneration paid or payable to an employee. Employees‘ Tax is deducted during the tax period.

Any person who pays or is liable to pay any person any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration, to a person under the provisions of a law or out of public funds (including the funds of any provincial council or any administration or undertaking of the State) or out of funds voted by Parliament or a provincial council. This definition excludes any person not acting as a principal but includes any person acting in a fiduciary capacity or in his/her capacity as trustee in an insolvent estate, an executor or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund.

Employer Statement of Account
All SARS clients which includes:ll SARS clients which includes:
  • Individuals
  • Companies (Local and Foreign)
  • Trusts
  • Partnerships
  • Clubs
  • 3rd parties
  • Traders, etc.
Entry for home consumption
When goods are cleared for use in South Africa and include entry under any item in Schedule 3, 4 or 6. “Entry for home consumption” is also regarded as “Duly entered”. Goods cleared terms of Rebate Items listed in Schedule 3 and 4, although deposited in rebate stores and controlled by Customs are still regarded as goods being “entered for home consumption”.

Environmental Levy
Means the environmental levy imposed on any goods which have been manufactured in or imported into South Africa under Schedule 1 Part 3.
Electronic payments are payments that are made directly to payee from your bank accounts using security features over the Internet to process the transactions.

Enterprise Project Management Office.

Equitable share
The allocation of revenue to the national, provincial and local spheres of government as required by the Constitution.

Equity instrument
An equity share in a company or a member’s interest in a Close Corporation, including an option to acquire such a share or member’s interest and any other financial instrument which is convertible to a share or member’s interest.

Equivalent compensation
System allowing, under certain Customs procedures, the exportation or importation of goods identical in type, description, quality and technical characteristics to those previously imported or exported (*). Notes: 1. In the context of the ECE Convention on Customs treatment of pool containers used in international transport, this term means the system that allows the re-exportation or re-importation of a container of the same type as that of another container previously imported or exported. 2. In certain countries, this system only allows a temporary admission for inward processing procedure or a temporary exportation for outward processing procedure to be discharged on presentation of a compensating product obtained from goods equivalent to those that have been exported or imported. 3. In certain countries, this system can also be applied to goods that will be imported or exported. (*) See the Guidelines to Chapters 1 and 2 of Specific Annex F to the Revised Kyoto Convention.

Equivalent goods
Goods identical in description, quality and technical characteristics to those imported or exported for inward or outward processing.

Employee relations

Estate Duty
Estate duty is levied in terms of the Estate Duty Act, 1955, Act 45 of 1955 (the Act) and constitutes a tax which has been levied on deceased estates since 1 April 1955. Under current legislation it is levied on the dutiable amount of the estate which exceeds R3 500 000, at a rate of 20%.

eSTT System
Electronic Securities Transfer Tax system.

European Union

Female sheep

Examination of goods
The physical inspection of goods by the Customs to satisfy themselves that the nature origin, condition, quantity and value of the goods are in accordance with the particulars furnished in the goods declaration.

Exception management
Exception management is the process where documents that do not conform to the requirements of the process within which the exception is identified are resolved or processed.

Exceptional circumstances
This concept is not defined in the Income Tax Act, but it is accepted law that when an Act refers to ‘exceptional circumstances’ it contemplates something out of the ordinary and of an unusual nature. The South African Constitutional Court has held that the lawgiver cannot be expected to prescribe that which is inherently incapable of delineation - if something can be imagined and outlined in advance it is probably because it is not exceptional.

Excisable goods
Any goods specified in Part 2 of Schedule 1 which have been manufactured in South Africa.

Excise Duty
Subject to the provisions of sub-section (3), any duty leviable under Schedule 1 Part 2 on any goods manufactured in South Africa.

The Executive Committee of SARS.

Any person who is authorized to act under letters of executorship granted or signed and sealed by a Master, or under an endorsement made under section 15 of the Administration of Estates Act.

An 'exempt' item refers to an item which is not subject to tax.

Exempt supplies
Goods and services exempt from VAT and in respect of which no input tax may be claimed.

Exit event
Termination of employment e.g. death, resignation, withdrawal, retirement, retirement due to ill health or winding up of the fund.

Export duties and taxes
Customs duties and all other duties, taxes or charges which are collected on or in connection with the exportation of goods, but not including any charges which are limited in amount to the approximate cost of services rendered or collected by the Customs on behalf of another national authority (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.

The act of taking goods out of the country / Customs territory.

Includes any person who, at the time of exportation: a) owns any goods exported; b) carries the risk of any goods exported; c) represents or acts as if he / she is the exporter or owner of any goods exported; d) actually takes or attempts to take any goods from South Africa; e) is beneficially interested in any way whatever in any goods exported; f) acts on behalf of any person referred to above and, in relation to imported goods, includes the manufacturer, supplier or shipper of such goods or any person inside or outside South Africa representing or acting on behalf of such manufacturer, supplier or shipper.

The full and final price paid for the product delivered outside the factory gate.
Last Updated: 19/07/2016 2:52 PM     print this page
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