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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Tax Clearance Certificate i.r.o Foreign Investment Allowance for Individuals.

Frequently Asked Questions

Own primary production in agriculture for gain on an agricultural property.

Farming operations
Bona fide farming activities carried on by a farmer, including livestock and produce, but also game and plantation farming, amongst others.

A follow-up created 30 days after the date on which an STC payment was journalised to an STC cycle where there is no return information captured.

This follow up is programmatically created on IT’S once an IT return has been filed through the eFiling website and manual intervention by the standard or complex business area is required before such assessment can be processed.

This follow up is programmatically created on IT’S once the assessment is processed and there is a credit amount greater than the audit limit present on the taxpayers account. This assessment must therefore first be verified (refund screening unit) or audited (audit section) and subsequently approved before the refund will be effected to the taxpayer.

Full container load - a term used to distinguish goods consigned from one (1) or more exporters to one (1) importer.

FCL container
A container with a full container load, containing goods from one (1) or more exporters to one (1) importer.

FCL groupage container
A container with a full container load, containing goods from one (1) or more exporter to more than one (1) importer. Such container(s) are sent from the container terminal to the licensed premises of the Associate Groupage Agents in South Africa for unpacking and distribution.

Front end system, such as SARS eFiling, payments at banks and SARSbank.

Financial Forecasting and Reporting

Foreign Investment Allowance

Financial Intelligence Centre Act

A person who is entrusted with the financial affairs and management of a Trust or fund, for the benefit of other persons.

Fundamental investments in the future

Federation Internationale de Football Association


Young female horses

Final cash up
This cash up must be performed at the end of the day. Offices must bank daily as required in terms of the PFMA. Only a limited amount of cash must be rolled-over to the following day’s deposit.

Financial account (of the balance of payments)
A statement of all financial transactions between a country and the rest of the world, including portfolio and fixed investment flows and movements in foreign reserves.

Financial and Fiscal Commission
An independent body established in terms of the Constitution to make recommendations to Parliament and provincial legislatures about financial issues affecting the three spheres of government.

Financial hardship
Inability to meet minimum living standards / depriving the tax payer of the ability to maintain minimum living expenses if ignored / or extraordinary circumstances beyond taxpayer’s control.

Financial year
The 12 months according to which companies and organisations budget and account.

Fiscal policy
Government policy on taxation, spending and borrowing.

Fiscal space
The room in a government’s budget to provide additional programme resources without jeopardising fiscal sustainability.

Fishing vessels
Vessels designed or adapted and used for commercial sea fishing, which are propelled by inboard engines of which the fuel tanks form an integral part of the structure and any dedicated mother ship in which fish is processed.

Financial Manager

Future Mode of Operation (Siyakha)

First National Bank

Front office

Very young, immature male or female horse

Front office-back office

Foreign diplomatic mission
Includes all embassies and consulates and their respective affiliates with same diplomatic status as well as international organisations and specialised agencies as defined in the DIAP (i.e. Diplomatic Immunities and Privileges) Act.

Foreign direct investment
The acquisition of long-term business interests in another country, usually involving management, technology and financial participation.

Foreign National
An individual who is a citizen of any country other than South Africa.
Foreign Person
Includes individuals, companies, etc.

Foreign Tax Credit
A non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source.

Formal written communication
All written communications on SARS letterheads excluding e-mails.
Founder of a trust

Fourth Schedule
The Fourth Schedule to the Income Tax Act No 58 of 1962.

Transaction code to generate detailed reports on manual outgoing cheques for other refunds.

Transaction code for clarification processing: payment lot.

A follow-up created when a payment received by SARS cannot be allocated to the relevant taxpayer’s tax account. It creates this follow-up once the payment is allocated to the IT’S unprocessed payment account. The payment will not form part of the calculation of the balance of the specific tax account of the taxpayer until such time that the payment is allocated to the account of the taxpayer by way of a journal on ITS.

FRE 030
Rejected RCT/PRCT changes

FRE 036
Authorise RCT/PRCT modifications as per the ITS system.

This follow-up is programmatically created on ITS when the taxpayers tax record has been reactivated. The portfolio maintenance units therefore need to re-open the taxpayer’s folder.

This follow up is programmatically created on ITS when the address unknown indicator is removed from the taxpayers record. The portfolio maintenance units therefore need to action this follow up and update the taxpayer’s tax record.

Free text field
A free text field may include the following: Alphabet A until Z; Upper and Lower Case Characters; Number 0 to 9; Dash (-); Space ( ); Inverted Commas (“”); Back slash(\); Forward slash (/); Question Mark (?); At sign (@); Ampersand (&); Dollar sign ($); Exclamation Mark (!); Hash (#); Plus (+); Equals (=); Semi colon (;); Colon (:); Comma (,); Apostrophe (‘); Left and Right Brackets (( )); Full Stop (.); Characters such as ê, ë etc. All special characters are allowed, however for XML development purposes the following standard must be adhered to: ISO-8859-1 encoding or informally referred to as Latin-1.

Free trade area
Entity formed by the Customs territories of an association of States and having in its ultimate state the following characteristics: - the elimination of Customs duties in respect of products originating in any of the countries of the area, - each State retains its Customs tariff and Customs law, - each State of the area remains autonomous in matters of Customs and economic policy, - trade is based on the application of rules of origin, to take account of the different Customs tariffs and prevent deflection of trade, - the elimination of restrictive regulations of commerce within the free trade area.

Free zone
A part of the territory of a state where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside Customs territory and are not subject to the usual Customs control.

Freight declaration
See Cargo declaration

Frontier traffic
Importations and exportations carried out by frontier zone inhabitants between two adjacent frontier zones. Notes: 1. Frontier traffic may be subject to special Customs regulations. 2. Customs facilities applicable to frontier traffic are dealt with in Annexes B.8. and D to the Istanbul Convention and in Annex F.3. to the Kyoto Convention of 1974 and Specific Annex J.1 to the revised Kyoto Convention.

Frontier Zone
An area of the Customs territory adjacent to the land frontier, the extent of which is determined in national legislation, and whose limits serve to distinguish frontier traffic from other traffic. Note: This term is defined in Annexes B.8 and D to the Istanbul Convention.

Frontier zone inhabitants
Persons established or resident in a frontier zone. Notes: 1. This term is defined in Annexes B.8 and D to the Istanbul Convention. 2. Both natural and legal persons qualify as frontier zone inhabitants.

Free State

Financial Services Board

Forward schedule of change

Foreign Tax Collection

File Transfer Protocol

Fuel Levy
Any duty leviable under the Act, specifically Schedule 1 Part 5, on petroleum products which have been manufactured in or imported into South Africa.

Fuel Levy goods
Any goods specified in Schedule 1 Part 5, except any goods specified in any item of that Part for which a free rate of duty is prescribed as contemplated in Section 37A(1)(a), which have been manufactured in or imported into South Africa.

Full release
This is a release where all the components of the release unit have been built, tested, distributed and implemented together e.g. a complete release of a new version of client desktop software.

Full scope audit
As defined per the Audit Results Policy.

In relation to a computer, includes logic, control arithmetical process, deletion, storage and retrieval and communications or telecommunications from or within a computer.

Financial Year-End
Last Updated: 19/07/2016 2:59 PM     print this page
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