Glossary N-Z

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.


Nairobi convention
The expression commonly used to refer to the International Convention on Mutual Administrative Assistance for the prevention, investigation and repression of Customs offences adopted by the Customs Co-operation Council in Nairobi in 1977.
National budget
The projected revenue and expenditure that flows through the National Revenue Fund. It does not include spending by provinces or local government from their own revenues.
National legislation
Laws, regulations and other measures imposed by a competent authority of a contracting party and applicable throughout the territory of the contracting party concerned or treaties in force by which that party is bound.
National Revenue Fund
The consolidated account of national government into which all taxes, fees and charges collected by the South African Revenue Service and departmental revenue must be paid.
Natural person
Natural resources
Includes precious stones, metal or minerals, natural oil or natural gas.
Nature of person
Nature of person in respect of an employee includes: A for an individual with an identity or passport number. B for an individual without an identity or passport number. C for a director of a private Company or member of a Close Corporation. D for a Trust. E for a company or a Close Corporation. F for a partnership. G for a corporation. H for a personal service provide. N for a pensioner (e.g. Member, former member or beneficiary of a member or former member) receiving a pension (including any lump sum or annuity payable by a fund in consequence).
National Command Centre
National Collections Call Centre
National Consulting Forum
Non-core Tax
Net amount of dividend
For STC purposes: The amount of a dividend declared less the amount of dividends received during a dividend cycle.
Net estate value 
Refers to amount that remains after deducting all allowable deductions and a given amount of R3.5 million.
Net remuneration
Refers to the balance of remuneration remaining (as determined by the employer) after accounting for specific deductions, which include: (i) current and arrear pension fund contributions; (ii) any current and arrear retirement annuity fund contributions; (iii) income protection policy contributions; (iv) medical scheme contributions (only for taxpayers aged 65 years and older); and (v) donations made by the employe eall of which are subject to various conditions as provided for in paragraph 2(4) of the Fourth Schedule to the Income Tax Act.
National Enforcement Unit
New returns
For VAT and PAYE, this refers to a case with three and fewer returns.
Non-Governmental Organisation
National Management Forum
Notice of Appeal
Nominal exchange rate
The current rate of exchange between the rand and foreign currencies. The “effective” exchange rate is a trade-weighted average of the rates of exchange with other currencies.
Trader that creates/initiates a relationship with another trader.
Nominee companies
Commonly formed by a bank or other organisation to manage the assets on behalf of the actual owner under an agreement.
Non Resident
Any person who falls outside the definition of “resident” in section 1 of the Income Tax Act.
Non-eligible purchases
Purchases of diesel/bio diesel fuel and not used as fuel for own primary production activities in farming, forestry and mining on land and in commercial fishing vessels, coasting vessels, offshore mining or vessels owned by the NSRI or locomotives and includes such fuel used in transport for reward/if resold/used in farming/forestry or rail freight haulage outside the borders of the republic.
Non-interest expenditure
Total expenditure by government less debt service costs.
Notice of Objection
Normal deceased estates
A deceased estate where the value of assets is more than R125 000 (“normal” deceased estate) will be administered in accordance with sections 13 and 14 of the Administration of Estates Act. The Master gives the appointed representative directions on form J190 of how to liquidate and distribute the assets. However, it should be noted that if the representative appointed does not have knowledge on how to administer the estate, the Master will request the executor to appoint an agent (for example an attorney or auditor) who will assist in administrating the estate in detail. The liquidation and distribution account must be lodged with the Master of the High Court after a period of six months. When the Master accepts the account, it shall be advertised to lie open for inspection for a period of 21 days.
Notice of Disclosure
The initiation of the creation of a relationship between a Nominator Client Type and Nominee Client Type
Notice of motion
An application made to Court, filed together with an affidavit, where: The applicant states the reasons for the application for sequestration of the estate (individual) or liquidation of the estate (Close Corporation or Company); or One or more of his/her creditors states the reason for the application for the sequestration or liquidation of the estate.
Number Plate Recognition
Not required status
National Sea Rescue Institute


Objections and Appeals Coordinator
This refers to the process whereby a taxpayer, who is aggrieved by an assessment or decision, may object thereto. The objection is made in accordance with the provisions of section 104, read together with the rules and regulations as laid down in section 103 of the TAA. An ADR1 or a NOO would be regarded as the official medium through which an objection can be raised.
Organisational Development
Organisational Development and Change Management
Organisation for Economic Co-operation and Development
Other Fermented Beverages produced in the same way as wine, but from fruit types other than grapes.
Any breach or attempted breach of Customs Law.
The Office of the Commissioner for Customs and Excise.
Office en route
Customs office where goods are imported or exported in the course of a Customs transit operation (*). (*) Annex E.1. to the Kyoto Convention of 1974 and Specific Annex E, Chapter 1 of the revised Kyoto Convention.
A person employed on any duty relating to Customs and Excise by order or with the concurrence of the Commissioner, whether such order has been given or such concurrence has been expressed before or after the performance of the said duty. The Commissioner of SARS is not deemed to be an “Officer” for the purposes of Section 4(3). (Legal Opinion Reg. 40 / 98 File 1/2/1/1).
Official rate of interest
With reference to taxable benefits, “official rate of interest” refers to the rate of interest fixed by the Minister from time to time by notice in the Gazette. Where the loan is denominated in rands, the official rate of interest will be the South African repurchase rate plus 100 basis points (1%). Where the loan is denominated in a foreign currency, the official rate of interest will be that which is equivalent to the South African repurchase rate in that currency, plus 100 basis points (1%). This is in accordance with the definition of “official rate of interest” in paragraph 1 of the Seventh Schedule to the Income Tax Act.
Other Government Agency
Old returns
For VAT and PAYE purposes, refers to a case with four and more returns.
Outlying Offices
Operations Management System
Once-off mandates
A mandate that is given by a taxpayer to a representative of the taxpayer. Once-off mandates will only be allowed under the following exceptional circumstances:
  • Estates
  • Incapacitated/terminally ill client
  • Non-resident
  • Imprisonment
  • SARS Registered Tax practitioners
  • When a taxpayer is located more than 200 km from nearest the SARS branch.
One time vendor
A collective vendor master record for vendors with whom only a once-off transaction is entered into.
Office of the Commissioner
Outstanding returns case management tracking tool on Microsoft access database.
Origin of goods
The establishment of the country in which the goods have been produced or manufactured, according to the criteria laid down for the purposes of application of the Customs tariff, of quantitative restrictions or of any other measure related to trade.
A person who sends, generates, stores or transmits any electronic message to be sent, generated, stored or transmitted to any other person, but does not include an intermediary.
Outstanding Returns Project
OR Tambo International Airport
One Stop Border Post
Other Party (Nominee)
RLA client type that is nominated for a relationship (nominee).
Outline agreement
A longer-term arrangement between the procurement centre and a vendor for the supply of materials and/or provision of services over a certain period based on predefined terms and conditions.
Outlying branch office
This is an FMO branch office with certain back office functionalities for the interim period only. The taxpayer’s folder is still located and maintained in this office.
Outright exportation
Customs procedure applicable to goods which, being in free circulation, leave the Customs territory and are intended to remain permanently outside it (*). (*) Specific Annex C, Chapter 1 of the revised Kyoto Convention.
Outstanding tax debt
Total liability including capital, penalty, additional tax and interest per tax type.
Outward processing
The Customs procedure under which goods which are in free circulation in a Customs territory may be temporary exported for manufacturing, processing or repair and then reimported with total or partial exemption from import duties and taxes. This facility is provided for in the Customs and Excise Act in the form of rebate provisions which can be found in Schedule 4.
The person who has legal rights to possess imported or exported goods and includes any person lawfully acting on behalf of the owner.
Ownership in terms of BEE
This refers to economic interests. It recognises and measures the entitlement of black people to the voting rights and economic interest associated with equity holding.
A sterilised bull


Project Administrator
Any container, wrapping or outer cover and its contents or any bundle or single piece in the case of unpacked goods.

Packing for export under Customs Supervision
When goods are packed under Customs supervision and sealed in Customs presence the seal numbers must be noted on the Application for Special/Extra Attendance (DA 73).

All articles and materials used, or to be used, in the state in which they are imported, to pack, protect, stow or separate goods, excluding packing materials such as straw, paper, glasswool, shavings, etc., when imported in bulk. Containers and pallets are also excluded. Notes: 1. Temporary admission facilities for packings are dealt with in the Customs Convention on the temporary importation of packings, and in Annex B.3. to the Istanbul Convention. 2. The Convention on the valuation of goods for Customs purposes and the Agreement on Implementation of Article VII of the GATT 1994 (commonly referred to as the WTO Agreement on Customs Valuation) contains provisions dealing with the treatment of packings for valuation purposes 3. General Rule 5 (b) for the Interpretation of the Harmonized System (International Convention on the Harmonized Commodity Description and Coding System) contains provisions on the tariff classification of packing materials and packing containers 4. In the case of specific duties and taxes, the weight of packings is included in the dutiable weight, gross weight or net weight, as the case may be.
The Promotion of Access to Information Act
The Promotion of Administrative Justice Act
A device on the deck of which a quantity of goods can be assembled to form a unit load for the purpose of transporting it, or of handling or stacking it with the assistance of mechanical appliances. This device is made up of two decks separated by bearers, or of a single deck supported by feet; its overall height is reduced to the minimum compatible with handling by fork lift trucks or pallet trucks; it may or may not have a superstructure. Note: This item is defined in Annex B.3. to the Istanbul Convention.
Payment Advice Notice
The cashier or team member (depending on the specific transaction) will save the journal in order for the team leader to verify it and post the journal if correct.
Partial release
This release only changes the CI’s or modules that have changed since the last full release. These changes are minor and must be of direct benefit to the business’s core function. Examples are data fixes, bug fixes.
Partial relief
Relief from payment of a part of the total amount of import duties and taxes which would otherwise be payable had the goods been cleared for home use on the date on which they were placed under the temporary admission procedure. Note: This term is defined in Annex E to the Istanbul Convention.
Payments Association of South Africa
Is a tax that employers withhold or deduct from the remuneration of employees, thus ensuring that an employee’s income tax liability is settled in a continuing fashion, at the same time that the remuneration accrues or is paid.
Pay As You Earn
Payments at your financial institutions’ system.
Payment in instalments
A request received from a taxpayer to defer the full payment and make payments in recurring instalments over a period of time, as provided for in sections 167 and 168 of the TAA.
Payment in one sum after prescribed period
A firm written request from a debtor to extend payment of the full account until a specified period, longer than 7 calendar days, has prescribed.
Payment lots
The payments received that are combined to be processed together.
Payment pending
It means the payment still hase to be made.
Payment period
The period of time in which the payment will be made.
Payment Reference Number (PRN)
The payment reference number (PRN) is the number which forms part of the 2010 ADOBE EMP201 declaration. The PRN is only allocated by SARS and the employer may under no circumstances create his / her own payment reference number (PRN). The PRN will be pre-populated by SARS when the EMP201 declaration is issued to the employer. The PRN must be used when a payment is made to SARS as this number links the payment made with the allocation portion declared on the EMP201.
Payor (WTI)
The person paying the interest
Payroll taxes
Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. Payroll taxes include Employees’ Tax (PAYE), Skills Development Levy (SDL) and/or Unemployment Insurance Fund (UIF).
Program and Budget Committee – a governance committee constituted to assist the Commissioner in executing his/her PFMA responsibility of ensuring that SARS has and maintains an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost effective.
Proactive compliance approach

Personal Computer
Procedure Category Code
Post dated
Duty Tax Type: Provisional payment amounts for Penalties
Penalty Assessment Notice
This is the written or electronic notice sent to a taxpayer indicating the amount of the penalty imposed by virtue of existing tax legislation.
Penalty debt case
Debt items that require human intervention.
Penalty debt item
Any transaction(s) recorded against an account that requires a recovery/collection action to be initiated, whether in the form of tracking, follow-up or resolution (systematically).
Any personal activity exercised as an entertainer or sportsperson, whether alone, or with any other person.
Both natural and legal persons, unless the context otherwise requires(*).
Personal effect
Articles (new or used) which a traveller may reasonably require for his or her personal use during the journey, taking into account all the circumstances of the journey and of any intermediate stays, but excluding any goods imported or exported for commercial purposes.
Personal Service Provider (PSP)
Means any company or trust, where any service rendered on behalf of such company or trust to a client of such company or trust is rendered personally by any person who is a connected person in relation to such company or trust. This is defined in par 1 of the Fourth Schedule to the IT Act, and contains further requirements and exclusions.
Public Finance Management Act
Use of email “phishing” scams requesting you to provide your private and confidential information via a website link is a key tool currently used by these conmen. SARS will never ask you for information such as your eFiling details (login credentials, passwords, pins, credit / debit card information, etc) in an email.
Physical Presence Test
A natural person, who is not ordinarily resident in South Africa at any time during a relevant year of assessment but meets with all three requirements of the physical presence test, will be deemed to be a resident. To meet the requirements that person must be physically present in South Africa for a period or periods exceeding – (i) 91 days in aggregate during the year of assessment under consideration; (ii) 91 days in aggregate during each of the five years of assessment proceeding the year of assessment under consideration; and (iii) 915 days in aggregate during those five preceding years of assessment. If that person fails to meet any one of these three requirements, he/she will not satisfy the physical presence test and will, for the purpose of the Act, be a non-resident.
Physical Inspector
In relation to any aircraft, means any person having charge of such aircraft.
Process Implementation Management Systems

Personal Identification Number
Personal Income Tax
Procurement Manager
Project Manager
Present Mode of Operation
Purchase Order
Prevention of Organised Crime Act
Proof of Delivery – generated by the relevant supplier and signed off by the end-user.
Poor quality documents
With respect to the Scanning Solution in SARS Processing Centres, poor quality documents are documents that are either smudged or poorly printed and are deemed to be “un-scannable”. The Scanning of these documents is futile as they will yield images from which data cannot be extracted.
A harbour/haven/inlet or recess of the sea where ships may be secure from storms.
  1. A user can act in differ roles as a tax administrator. Example include:
  2. Acting as himself/herself when administering his/her own individual taxes;
  3. Acting as the registered representative or an employee for a company; or
  4. Acting as an agent on behalf of someone else:

i)                Registered tax practitioners;

ii)              Employees with delegated authority from a registered tax practitioner;

iii)             Family member or friend acting on behalf of an individual taxpayer; or

iv)             Foreigner acting on behalf of a company or individual.

e)  In eFiling, a user can create, be invited to or have access to multiple portfolios to enable him / her to fulfil these roles.  For example, the same user can have access to:

i)                An individual portfolio for his/her own taxes; or

ii)              Multiple company portfolios for acting as the registered representative or employee of multiple companies.

f)  Multiple tax practitioner profiles for acting as a tax practitioner for multiple tax practice

Ports of entry
Contemplated in section 9(1) of the Immigration Act 13 of 2002 and defined in section 1 of that Act as “a place designated as such by the Minister where all persons have to report before they may enter, sojourn or remain within, or depart from the Republic;…”
Points of Service
Postal items
A public or private body authorized by the government to provide the international services governed by the Acts of the Universal Postal Union currently in force.
Postal parcels
Items called postal parcels within the meaning of the Acts of the Universal Postal Union currently in force .According to the Acts of the Universal Postal Union postal parcels are required to be accompanied by a Customs declaration form CN22/CN23.
Postal service
A public or private body authorized by the government to provide the international services governed by the Acts of the Universal Postal Union currently in force.
Power of Attorney
The appointment of an intermediary with the right to perform functions on behalf of another entity.
Provisional Payment
PP details
Includes PP reference/case number, expiry date and PP conditions
Duty Tax Type: Provisional payment amounts for Anti-Dumping
Duty Tax Type: Provisional payment amounts for Countervailing
Duty Tax Type: Provisional payment amounts for Embargo release
Duty Tax Type: Provisional payment amounts for Safeguarding

Preferential Procurement Policy Framework Act
Duty Tax Type: Provisional payment amounts for conditional release
Passenger Processing System
Duty Tax Type: Provisional payment amounts for Temporary imports

Passenger Processing System
Provisional Return Control Table
Prescribed by the Customs and Excise Act
Preventative Penalties
Sanctions intended to deter contraventions of the Act, which can include fines.
Primary sector
The agricultural and mining sectors of the economy.
Private-sector credit extension
Credit provided to the private sector by banks. This includes all loans, credit card balances and leases.
Payment Reference Number
Procedure codes
Customs Procedure Codes describes the combination of the RPC (Requested Procedure Code which defines the purpose for which goods are to be cleared and released, either for home use or a permissible Customs procedure) and PPC (Previous Procedure Code which defines the purpose for which goods were cleared under a previous Customs procedure).
Processing of goods for home use
The Customs procedure under which imported goods may be manufactured, processed or worked, before clearance for home use and under Customs control, to such an extent that the amount of the import duties and taxes applicable to the products thus obtained is lower than that which would be applicable to the imported goods (*). (*) Specific Annex F, Chapter 4 of the revised Kyoto Convention.
Processing of goods to the customs
The act of presenting goods to the competent Customs authorities, at the place designated or accepted by them, for completion of the Customs formalities. Note: The production of goods to the Customs is itself one of the Customs formalities.
Product catalogue
A structured collection of data about products and services on approved contract available for procurement requests on SAP.
A measure of the amount of output generated from every unit of input. Typically used to measure changes in labour efficiency.
Professional equipment
Equipment necessary for the exercise of the calling, trade or profession of a person who enters a country to exercise his or her profession in that country.Notes:1. This equipment includes the equipment set out in the illustrative lists in :(a) Annexes A, B and C to the Customs Convention on the temporary importation of professional equipment, Brusssels,1961;(b) Annex B.2 to the Istanbul Convention, 1990.2. In countries where the ATA system is applied, ATA carnets are as a rule accepted for the temporary admission of professional equipment.
Pro-forma return
A return manually completed by the SARS branch office.
Prohibition of goods
Goods whose importation or exportation is prohibited by law.
Project manager
Refers to the resource responsible for managing a particular SARS project to ensure readiness prior to a pre-determined implementation date (release). This can be a dedicated resource from EPMO or the change owner from within SMT.
Promise to pay
A firm, written or telephonic, commitment from a debtor of full payment, in respect of the arrear tax debt, which payment will be made within 7 or less calendar days from date of receipt of such commitment.
Provisional Tax Liability
The amount that is owing (and which must be paid) in respect of provisional tax.
Postscript. It usually refers to an addition made after a letter/email has been completed and signed.
Parliamentary Service Unit which deals with taxpayers who are serving in Parliament.
PSV file
Pipe Separated Value file, which is a file that is used by various applications for data storage or transfer.
Preferred Trader
Public benefit activity (PBA)
A PBA is an activity determined by the Minister of Finance as being of a benevolent nature having regard to the needs, interests and well-being of the general public. A list of PBAs approved by the Minister is published in Part I of the Ninth Schedule to the IT Act. The approved PBAs are grouped into categories each with specific activities that qualify as PBAs. Refer to Part I of the Ninth Schedule to the IT Act for the comprehensive list of approved PBAs.
Public Benefit Organisations
The term “public benefit organisation” is defined in section (30)1 of the IT Act as an organisation that is not for gain, a non-profit organisation whose sole object is to conduct, and be involved in, one or more public benefit activities.
Public entities
Companies, agencies, funds and accounts that are fully or partly owned by government or public authorities and are regulated by law.
Public sector borrowing requirement
The consolidated cash borrowing requirement of general government and non-financial public enterprises.
Public-private partnership (PPP)
A contractual arrangement in which a private party performs part of a government function and assumes the associated risks. In return, the private party receives a fee according to predefined performance criteria.
People with disabilities


Quality Management System
Queue Management Tool, a system employed in SARS branch offices to manage queues.
Qualifying Company
In terms of section 12J(1) ‘qualifying company’ means any company if: that company is a resident; the company is not a controlled group company in relation to a group of companies contemplated in paragraph (d)(i) of the definition of ‘connected person’; the tax affairs of the company are in order and the company has complied with all the relevant provisions of the laws administered by the Commissioner; the company is an unlisted company as defined in section 41 or a junior mining company; the company is not carrying on any impermissible trade; the sum of the investment income, as defined in section 12E(4)(c), derived by that company during any year of assessment does not exceed an amount equal to 20 per cent of the gross income of that company for that year.
Qualifying share
An equity share held by a venture capital company which is issued to that company by a qualifying company, unless that venture capital company has an option to dispose of the share, or the qualifying company has an obligation to redeem that share, for an amount other than the market value of the share at the time of that disposal or redemption.
Quality check
With regard to the Scanning Solution in the SARS Processing Centre, this refers to a visual check of the quality of pre-sorted documents received from Scanning Preparation routed for scanning and includes the following: Checking for smudged documents; Checking for poorly printed documents (fading ink) and; Inferior photo copies of original documents. NOTE: The Quality Check will only be conducted on documents within the scan strategy i.e. no quality check will be conducted on supporting documentation received with returns. The quality check also includes a visual check to ensure that splitter pages have been inserted.
Quantitative quota
Any pre-set quantity, authorized for importation or exportation of given goods, during a specified period, beyond which no additional quantity of these goods can be imported or exported.


Released As Entered
Road Accident Fund
Male sheep
Regional Consultative Forum
Reporting of Conveyances and Goods
Return Control Table
R/D cheque
A cheque which has been “referred to the drawer”. The cheque has been returned as unpaid due to not enough funds being available.
Risk Differentiation Mechanism
Return to Drawer payments
Real effective exchange rate
A measure of the rate of exchange of the rand relative to a tradeweighted average of South Africa’s trading partners’ currencies, adjusted for price trends.
Real expenditure
Expenditure measured in constant prices, i.e. after taking account of inflation.
Real interest rate
The level of interest after taking account of inflation.
Reasonable grounds
The ordinary dictionary meaning of “reasonable” is “having sound judgement; moderate; ready to listen to reason; not absurd; within the limits of reason; not greatly less or more than might be expected; tolerable, fair” (Concise Oxford Dictionary). Essentially, for a decision to be reasonable the Commissioner is required to consider all relevant matters. The Constitutional Court has held that there is no absolute standard of reasonableness – what is “reasonable” would depend on the particular circumstances of each case.
A facility provided for in the Act, subject to the compliance of specific conditions, whereby the full or part of the duty is reduced or remitted.
Received refund(s) on contributions(s) made to this trust (on the ITR12T)
Means any contribution(s) received by the trust both of a capital and/or non-capital nature.
Receiving state
RSA government
Receiving state (Foreign Diplomats)
The Government of the Republic of South Africa.
Reconciliation declaration
The reconciliation declaration is the EMP501 document on which an employer’s PAYE, SDL and UIF liabilities are declared with associated payments, certificate values and the resulting net effect of setting off payments again liabilities.
Reconciliation submission process
This is the process through which an employer submits all required PAYE, SDL and UIF documentation to SARS for processing i.e. IRP5/IT3(a), EMP501, EMP601 and an EMP701 if applicable.
Red Channel
The route followed in passing through Customs in an airport, seaport or port of entry by passengers who have goods to declare.
Exportation from a Customs territory of goods previously imported into that territory.
Capable of being given back or repaid.
Registered Representative
  1. The official representative of the legal entity as captured in U3TM.  This is a formal relationship.

  2. The registered representative can act on behalf of the legal entity when engaging with SARS.  This relationship is checked on eFiling and therefore the registered representative has very specific powers.

  3. One of the most important powers is that the registered representative is the only person that can approve the Tax Type Transfer requests or shared access request.
Registered tax practitioner
The duty to register as a tax practitioner applies to– Every natural person who: Provides advice to another person with respect to the application of a tax Act; or Completes or assists in completing a document to be submitted to SARS by another person in terms of a tax Act; Such person must register as a tax practitioner with SARS within 30 days after the date that person for the first time provides advice, or assists in completing documentation. The duty to register as a tax practitioner does not apply to a person who: Provides the advice and completes or assists in completing a document solely for no consideration to that person or his or her employer or a “connected person”, as defined in section 1 of the Income Tax Act No.58 of 1962, in relation to that employer or that person; Provides the advice solely in anticipation of or in the course of any litigation to which the Commissioner is a party or where the Commissioner is a complainant; Provides the advice solely as an incidental or subordinate part of providing goods or other services to another person; Provides the advice or completes or assists in completing a document solely:- to or in respect of the employer by whom that person is employed on a full time basis or to or in respect of that employer and “connected persons” in relation to that employer; or under the direct supervision of a person who is registered as tax practitioner in terms of the subsection above. A person may not register as a tax practitioner if :- During the preceding five years, that person has been removed from a related profession; during the preceding five years, that person has been convicted (whether in the Republic or elsewhere) of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No.12 of 2004), or any offence involving dishonesty – for which the person has been sentenced to a period of imprisonment exceeding two years without option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines, 1991 (Act No.101 of 1991).
Regulated intermediary
A regulated intermediary is a specified regulated person which administers dividend payments that were declared by a company after having received those payments from the company that declared the dividend. A regulated intermediary includes, for example, central securities depository participants, brokers, nominee companies, and approved transfer secretaries.
Importation into a Customs territory of goods previously exported from that territory.
Re-importation in the same state
The Customs procedure under which goods which were exported may be taken into home use free of import duties and taxes, provided they have not undergone any manufacturing, processing or repairs abroad and provided that any sums chargeable as a result of repayment or remission of or conditional relief from duties and taxes or of any subsidies or other amounts granted in connection with exportation must be paid. The goods that are eligible for re-importation in the same state can be goods that were in free circulation or were compensating products (*). (*) Specific Annex B, Chapter 2 of the revised Kyoto Convention.
Once a disclosure is accepted (i.e. when the Nominee accepts the notice of disclosure created by the nominator) a relationship is created.
A relative as defined in section 1 of the IT Act means, in relation to any person, the spouse of such person or anybody related to him or his spouse within the third degree of consanguinity, or any spouse of anybody so related, and for the purpose of determining the relationship between any child referred to in the definition of “child” in this section and any other person, such child shall be deemed to be related to its adoptive parent within the first degree of consanguinity.
Release Authority
a) Master, pilot or other carrier in respect of any goods for which such a master, pilot or carrier is liable until lawful delivery of the goods, after due entry thereof to an importer or his agent as contemplated in Section 44(5)(a); b) Container operator approved by the commissioner in terms of Section 96A in respect of goods contained in a FCL container to be released from a container terminal contemplated in Section 6(1)(ha) or a container depot contemplated in Section 6(1)(hb); c) Depot operator of a container depot licensed in terms of Section 64A, in respect of any goods contained in a LCL container or FCL (groupage) container defined in the Rules for Section 8 to be released from a such a container depot; or d) Degrouping operator who is a licensee of a degrouping depot licensed in terms of Section 64G, in respect of any air cargo to be released from such depot; and e) Licensee of a Customs and excise storage warehouse in respect of any goods released from a Customs and excise storage warehouse contemplated in Sections 19, 19A or 21.
Release of goods
The action by the Customs to permit goods undergoing clearance to be placed at the disposal of the persons concerned (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
Release unit
Describes the IT infrastructure components that are normally released together.
Relevant material
As defined per section 1 of the TAA means any information, document or thing that is foreseeably relevant for tax risk assessment, assessing tax, collecting tax, showing non-compliance with an obligation under a Tax Act or showing that a tax offence was committed.
Relief consignment
Goods, including vehicles and other means of transport, foodstuffs, medicaments, clothing, blankets, tents, prefabricated houses, water purifying and water storage items, or other goods of prime necessity, forwarded as aid to those affected by disaster; and – all equipment, vehicles and other means of transport, specially trained animals, provisions, supplies, personal effects and other goods for disaster relief personnel in order to perform their duties and to support them in living and working in the territory of the disaster throughout the duration of their mission (*). (*) Specific Annex J, Chapter 5 of the revised Kyoto Convention.
Relief from import duties and taxes
Clearance of goods for home use free of import duties and taxes, irrespective of their normal tariff classification or normal liability, provided that they are imported in specified circumstances and for specified purposes. Note: Relief from import duties and taxes is dealt with specifically in Annex B.2. to the Kyoto Convention of 1974 and in Specific Annex B, Chapter 3 of the revised Kyoto Convention.
Regional Enforcement Manager
System to track and monitor all IT-related calls that were logged at the SARS Service Desk.
Remission of import duties and taxes
The waiver of payment, in whole or in part, of import duties and taxes where payment has not been made. Note: Remission of import duties and taxes is dealt with in Annex F.6. to the Kyoto Convention of 1974. That Annex also covers the refund, in whole or in part, of import duties and taxes paid on goods declared for home use.
Removal of goods in bond
The removal of goods from a place of entry or warehousing place to another place of entry or warehousing place in certain approved instances where the duties on such goods have not been paid. In terms of the Kyoto Convention removal of goods in bond is referred to as “transit” movements and the convention document elaborates further to divide such movements into three (3) categories, namely “inward transit / removal in bond” which is the removal of goods in bond from a Customs office of entry to another inland Customs office, “outward transit / removal in bond” which is the removal of goods in bond from an inland Customs office to a Customs office or exit and “interior transit / removal in bond” which is the removal of goods in bond from one (1) inland Customs office to another inland Customs office. All the aforementioned movements are for the purposes of the Act termed “Removals in bond”. The Kyoto Convention furthermore considers the movement of goods from a place of entry direct to the place of exit as “through transit”. In terms of the current Act however such movements are merely termed “removals in transit”.
Removal of goods in transit
The direct transportation of goods on which duty has not been paid, from a place of entry in South Africa through the Customs Union to a place outside the Customs Union.
Remuneration is defined in paragraph 1 of the Fourth Schedule to the IT Act as– any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance or stipend, whether in cash or otherwise and whether or not in respect of services rendered. The definition is more extensive and provides for further inclusions and exclusions.
The refund, in whole or in part, of duties and taxes paid on goods and the remission, in whole or in part, of duties and taxes where payment has not been made (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
Repo (re-purchase) rate
The rate at which the Reserve Bank lends money to commercial banks.
Representative employer
In the case of any company, the public officer of that company, or, in the event of such company being placed in liquidation or under judicial management, the liquidator or judicial manager, as the case may be; in the case of any municipality or anybody corporate or unincorporated (other than a company or a partnership) any manager, secretary, officer or other person responsible for paying remuneration on behalf of such municipality or body; in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or in the case of any employer who is not resident in the republic, any agent of such employer having authority to pay remuneration. The full definition can be found in paragraph 1 of the Fourth Schedule to the IT Act.
Representative taxpayer
A natural person who resides in the Republic. Paragraph 1 of the Fourth Schedule of the Income Tax Act No. 58 of 1962 and section 46 of the Value-Added Tax (VAT) Act refers to the following persons as representative taxpayers:
  • Treasurer
  • Guardian
  • Curator
  • Public officer
  • Accountant
  • Tax Consultant
  • Attorney
  • Advocate
  • Legal Advisor
  • Auditor
  • Bookkeeper
  • Conveyancer in a case of Transfer Duty
  • Director
  • Employer
  • Executor/administrator
  • Fund Administrator
  • Insurance Broker
  • Relative/Parent
  • Secretary
  • Trustee
  • Etc.
Request correction
The process whereby a capture error on a tax return can be quickly corrected without resorting to an objection.
Request for Remission (RFR)
Request for Remission of the penalty is a means for the taxpayer to dispute the Administrative Penalty that was levied to his / her account and to request that the penalty be waived.
The person responsible for accepting and interpreting the initiator’s paper request into an online request on the SAP r/3 or EPB system.

The official representative of the legal enity as captured on U3TM or  a representative mandated by a Customs and Excise Client to:

  1. Capture and submit Customs and Excise related application on behalf of the applicant; or
  2. Make necessary follow-ups (including providing supporting documents, correcting errors or making enquiries) in relation to such application.
Reserves (foreign exchange)
Holdings of foreign exchange, either by the Reserve Bank only, or by the Reserve Bank and domestic banking institutions.
As defined in section 1 of the IT Act– Includes: Any natural person who is ordinarily resident in South Africa; or Any natural person who complies with the physical presence test; and Any person (other than a natural person) which is incorporated, established or formed in South Africa or which has its place of effective management in South Africa, but: Excludes any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the government of South Africa and that other country for the avoidance of double taxation.
Responsive bid
A bid submitted by a bidder which conforms in all material respects to the invitation to bid.
Restriction of goods
A legal requirement by law for the submission and approval of an application or other document (other than for Customs purposes) as a prior condition to importation or exportation.
Retirement funding employment
Any remuneration of the employee that is taken into account in the determination of the retirement fund contributions made by an employee or by the employer on behalf of such employee (to, for example, a pension or provident fund).
Retirement funds
Approved funds which are administered for the provision of pensions.
Retirement Funds Tax
Refers to the tax on retirement funds as provided by the Retirement Funds Act, 1996 (Act No. 38 of 1996), which has been repealed with effect from 1 March 2007.
With respect to Employees’ Tax (PAYE), a return refers to an EMP201 monthly declaration for employers.
Returns lot
Returns that are grouped to be processed collectively. These can be returns related to incoming and outgoing payments that were created automatically (such as bank collections) that are sent back by the relevant banking institution. A returns lot can be created manually or automatically (transferring data from electronic payment mediums). 

Reusable transport equipment
Equipment of a durable nature, manufactured for repeated use without further alteration, designed for the continuous use in the transport of goods in the ordinary course of trade, for example: a) Containers contemplated in Section 1(2); b) Unit load devices; c) Pallets; d) Racking equipment, specially designed to protect a specific type of goods; or e) Material used to pack, cover, protect, stow or separate goods

Revenue management
The collecting, accounting and reporting of all taxes, duties and levies that become due in terms of legislation administered by SARS. This process is a primary component of the country’s national financial supply chain, forming a critical link in ensuring sustainable cash flows for Government and comprises of three basic components, namely: Reporting (which measures the effectiveness of the Organisation’s financial performance and enables the prediction of future cash flows); Revenue accounting (which accounts for all revenue, expenditure, assets and liabilities and which is responsible for optimising cash transfers to Government); and Tax accounting (which is responsible for recording, transacting and reconciliation of all taxpayer/trader obligations.
Revised Arusha Declaration
The expression commonly used to refer to the Declaration of the Customs Co-operation Council concerning good governance and integrity in customs, adopted by the Customs Co-operation Council in Arusha in 1993 and revised in 2003.
Revised Kyoto convention
The expression commonly used to refer to the international Convention on the simplification and harmonization of Customs procedures (amended), adopted by the Customs Co-operation Council in Brussels in 1999.
Any financial gain, money, goods or services
Request For Correction
Request For Information – is used to test the market and to obtain information for business on particular goods and/or services required.
Request For Proposal – an invitation to prospective suppliers of goods or services to respond with a proposal as to how they will meet the requirements set out in a tender.
Request For Quotation – an invitation to prospective suppliers to provide a quotation for the good or services set out in a tender.
Request For Remission
RFR form
Request for Remission of penalty form
Retirement Fund Tax
Risk engine
Refers to the advanced statistical analysis that is performed systematically, and which is programmed on the probability of compliance risk.

Registration, Licensing and Accreditation (The system that allows client’s to submit application(s) for registration of RLA Customs client types, and which manages the processing of those applications in a case and workflow driven approach).

Regional Management Forum
Road Accident Fund
Means, subject to subsection (4), any duty leviable under Part 5B of Schedule No. 1 on any Road Accident Fund levy.
Registrar of Companies
Role (RACI)
R= Responsible; A= Accountable; C= Consulted; I= Keep Informed.  This role conducts the actual work or owns the problem. This role approves the completed work and is held fully accountable for it. This role may be consulted during the process. This role is to be informed of the progress and or results.
Regional Operations Manager
Rules of origin
ROO System
Rules of origin applications on the Export System pertaining to trade arrangements.
With respect to retirement fund benefits, ROT refers to Recognition of Transfer. This is a document that is submitted to SARS together with a Tax Deduction Directive application, where a lump sum benefit was transferred from one approved fund or public sector fund to another approved or public sector fund. The transferee and recipient fund must sign the document to be a valid document.
Republic of South Africa
Reporting of Suspected Non-Compliance
Register Tax Practitioner
Restricted Taxpayer Unit
A Rule made by the Commissioner under the Customs and Excise Act.
Rules of origin
Specific provisions, developed from principles established by national legislation or international agreements (“origin criteria”), applied by a country to determine the origin of goods. Note: Rules of origin are dealt with in Annex D.1. to the Kyoto Convention of 1974 and in Specific Annex K, Chapter 1 of the revised Kyoto Convention.
Remote Virtual Outbound


S code
Suspense coded
South Africa
The bilateral trade agreement between South Africa and Zimbabwe.
The Southern African Customs Union, consisting of: The Republic of South Africa The Republic of Botswana; The Kingdom of eSwatini; The Kingdom of Lesotho; and The Republic of Namibia
The free trade agreement between the Southern African Customs Union and the European Free Trade Association.
Single Administrative Document
Southern African Development Community
Agreement on trade, development and co-operation between South Africa and the European Community
Safe Frameworks of standards
The expression commonly used to refer to the WCO SAFE Framework of Standards to secure and facilitate global trade, adopted by the Customs Co-operation Council in 2005.
South African Institute of Chartered Accountants
Articles which are representative of a particular category of goods already produced or are examples of goods the production of which is contemplated; the term does not include identical articles brought in by the same individual, or sent to a single consignee, in such quantity that, taken as a whole, they no longer constitute samples under ordinary commercial usage.
Samples of no commercial value
Articles which are regarded by the Customs to be of negligible value and which are to be used only for soliciting orders for goods of the kind they represent (*). Note: Such articles are normally allowed relief from import duties and taxes. In Annex B.2. to the Kyoto Convention of 1974, it is recommended that the following should be regarded as samples of no commercial value : (a) raw materials and products of such dimensions that they are useless except for purposes of demonstration; (b) articles of non-precious materials affixed to cards or put up as samples in the manner usual in the trade, provided that there is not more than one of each size or kind; (c) raw materials and products, and articles of such materials or products, rendered useless, except for purposes of demonstration, by slashing, perforation, indelible marking or by any other effective method; (d) products which cannot be put up as samples of no commercial value in accordance with paragraphs (a) to (c) above and which consist of : (1) non-consumable goods of an individual value not exceeding US$5, and provided there is not more than one sample of each kind or quality; (2) consumable goods of an individual value not exceeding US$5, even if they consist wholly or partly of samples of the same kind or quality, provided the quantity and the manner in which they are put up preclude their being used otherwise than as samples. (*) International Convention to facilitate the importation of commercial samples and advertising material (Geneva, 1952).
System Application Product
SAP approver
SAP user with approving rights on SAP system
SAP business information warehouse
SAP enterprise buyer professional (product catalogue) and special requests.
Financial contract accounts – refers to the financial accounting (sub-ledger) application in SAP.
General ledger, refers to the general ledger application in SAP.
SAP material management – used for procurement of items by generating purchase orders.
Systems Application Product – Public Sector Collections and Disbursement.
Systems, applications and products (release 3).
This refers to the financial accounting application (sub-ledger) in SAP r/3.
This refers to the general ledger application in SAP r/3.
SAP supplier relationship management.
SAP workflow – used for approvals based on organisational structure.
South African Post Office
South African Police Service
SARS Audit Risk Analysis Programme
South African Reserve Bank
South African Revenue Service
SARS Audit
Divisions within SARS which conduct audits including LBC, HNWI, Estate Audit, Restricted Taxpayer Unit (RTU) and PSU.
SARS Audit (Big E)
Divisions within SARS which conducts audits including Enforcement Investigations, LBC, HNWI, Estate Audit, RTU and PSU.
SARS Core Tax System
SARS i-model
The SARS i-model is SARS’s approach to achieving its core outcomes. The primary approach to achieve these outcomes is to shift resources, particularly human capacity, away from routine low value-adding activity into service, education and enforcement areas with high value-adding activity.
SARS liability
Liability according to the core system for a specific period, excluding any payments.
SARS official
As defined in section 1 of the Tax Administration Act, it refers to (i) the Commissioner; (ii) an employee of SARS; (iii) or a person contracted by SARS for purposes of the administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or supervision of the Commissioner.
SARS Scanning Strategy
The SARS Scanning Strategy is the strategy that defines the types of documents that will be scanned at the specific Processing centre’s scanning facility at a given point in time.
Self Assessment System Questionnaire
Salaried taxpayers with investment income as well as members of Close Corporations/Directors of Companies return category.
Small Business
Small Business Tax Amnesty
Small Business Amnesty processing unit which is situated in the assessment centre.
Small Business Centre
Small Business Consultant
SAP Reconciliation Report
Small Business Programme
Service Charter
Scan batches
Scan Batches are batches of pre-sorted documents that are assembled for scanning. These batches consist of approximately 100 pages.
Scanning preparation area
The Scanning preparation area is a dedicated area at the scanning facility within which the following activities will take place: Scanning of documents as “Received for Scanning”; Performing of Quality Check of all prepared scanned batches; Where scan quality or items are not in line with the scanning strategy, forwarding these Error items for manual exception handling; Ensuring that the official SARS form (e.g. IT return) precedes any other documents related to that specific form that may be within the scanning Strategy. Inserting splitter pages.
Single Customer Master
Supply chain management
Standing Committee on Finance
Skills Development Levy
A piece of metal or other material used to join together two ends of a fastening in a secure manner (*).(*) Council Recommendation concerning Customs sealing systems in connection with the international transport of goods, 1968.
Seaport Transit Sheds
The seaport transit sheds usually contain break bulk cargo. No surety bonds are required if the sheds are within the harbour area and if Customs are satisfied with the security and control measures.
Seasonally adjusted and annualised
The process of removing the seasonal volatility (monthly or quarterly) from a time series. This provides a measure of the underlying trend in the data. Annualised: to express a rate as if it were applied over one year.
Second period
Refers to the second period for Provisional Tax purposes (second payment).
Secondary Tax on Companies (STC)
A tax levied on the net amount of dividends declared by a company.
Secondary Tax on Companies credits
The amount of dividends calculated under section 64J(2) of the Income Tax Act that were subject to STC, that must be utilised by a company to reduce its liability for dividends tax.
Section 18(3) deceased estates case
This section of the Administration of Estates Act provides for a quicker and more efficient process of administration. It can only be applied to an estate where the value of the assets are not more than R125 000 (this is the current amount determined by the Minister of Finance by notice in the Government Gazette). Instead of issuing a letter of executorship, the Master will issue letter of authority (J170). Usually an heir or family member accepts an appointment by the Master as the estate’s representative. The Master gives the representative directions on how to liquidate and distribute the assets in the estate on form J155. These instructions are very basic. The representative must collect and if necessary liquidate the assets and pay the creditors first and then the heirs’. There is no liquidation and distribution account and it does not lie open for inspection.
Share in a company; Member’s interest in a close corporation (CC); or any right or entitlement to receive any distribution from a company or CC.
Securities Transfer Tax (STT)
A tax levied on every transfer of a security and is levied at a rate of 0.25%. This tax was known as Uncertificated Securities Tax prior to 1 July 2008
That which ensures to the satisfaction of the Customs that an obligation to the Customs will be fulfilled. Security is described as “general” when it ensures that the obligations arising from several operations will be fulfilled. Note: Security usually takes the form of a deposit or of a legal obligation (a bond). A surety to the bond is usually required.
Small Enterprise Development Agency
Selectively Allowed
Administrative penalties recur for each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number. The term ‘selectively allowed’ applies when the user dealing with the objection/appeal case only allows certain transactions to be remitted
Sending state (Foreign Diplomats)
The Government of a Foreign Country
Senior Auditor
A person who performs reviews in the High Net Worth Individuals division
Senior manager
A person who performs first level review in the High Net Worth Individuals division
Senior SARS official
In accordance with section 6(3) of the TAA, a senior SARS official refers to (i) The Commissioner; or (ii) A SARS official who has specific written authority from the Commissioner to exercise the power; or (iii) A SARS official occupying a post designated by the Commissioner for this purpose.
Service catalogue
List of all services delivered to the business by the technology division.
Service entry sheet
A list of services performed by a vendor on the basis of a purchase order, containing service descriptions and details of quantities and values. This is merely a transaction on SAP and not a record or template.
Service Manager
Service Manager is the single SARS operational system to be used by all users at back and front offices when completing client transactions with clients. It was an integral part of SARS Modernisation Programme.
Anything done or to be done. This includes the granting, assignment, cession or surrender of any right, but excludes a supply of goods, money or any stamp, form or card.
Sector Education and Training Authority
Means to resolve a dispute by compromising any disputed liability, otherwise than by way of either the Commissioner or the person concerned accepting the other party’s interpretation of the facts or the law applicable to those facts, or of both the facts and the law, and “settlement” shall be construed accordingly.
Settlor of a Trust
See Donor/Founder/Settlor of a Trust.
Seventh Schedule
The Seventh Schedule to the Income Tax Act No 58 of 1962.
Shared Access
This is the functionality on eFiling whereby two different eFiling Users have access to the tax products of a specific taxpayer.
Any ship, vessel or boat (including a flying boat – hovercraft) of any kind whatsoever.
Ship stores
Fuel pumped on board a vessel for its own consumption.
Ship’s general declaration
Declaration (IMO FAL Form 1) conforming to the provisions of the Annex to the Convention on Facilitation of Maritime Traffic, London, 1965. The general declaration is the basic document on arrival and departure providing information concerning the ship itself and summary information relating to the cargo, crew, passengers and voyage.
Standard Industrial Classification Codes.
Single view integration layer
System integration where payments are processed.
Single window (SW)
A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once. (*) (*) UN/CEFACT). Recommendation No. 33.
SARS Insolvency Practitioners Panel
Refers to Standard Income Tax on Employees and is payable on the first R60,000 remuneration (or an annual equivalent thereof) for any period on remuneration received from standard employment. SITE is being phased out entirely, and will not applicable from 1 March 2013. Refer to section 6(5) of the IT Act, read with paragraph 11B of the Fourth Schedule to that Act.
Means “We are building”, and also refers to the process SARS underwent between 2001 and 2005 with regard to restructuring its operations nationally.
Skills Development Levy
SDL is a levy payable by employers and is calculated at a prescribed percentage of the leviable amount. The levy is used for national skills development.
Service Level Agreement
Service Manager
Subject Matter Expert – an individual who is fully conversant and highly experienced in a particular field or on a specific subject.
Small, Micro and Medium Enterprises
State Miscellaneous Revenue Account
Short Message Service
Strategy, Modernisation and Technology Division.
A Customs offence where goods are moved across a Customs frontier in any clandestine manner, thereby evading Customs control (*). Notes: 1. This term may also cover certain violations of Customs legislation relating to the possession and movement of goods within the Customs territory. 2. In certain countries :- The concept of clandestine movement of goods across frontiers is not a mandatory feature of smuggling. – An offence is not defined as smuggling unless it is intentional. (*) Nairobi Convention.
Senior Human Resources Manager
Suspension of Payment
Statement of Account
Solicited relevant material
Documents requested by SARS
Standard Operating Procedure


SARS Online Query System
Sorting errors
Sorting Errors are those documents that have slipped through the sorting conducted at Rough Sorting, including the following: Not a part of the Scanning Strategy; and Returns with no barcode; poor quality; incorrect form type, incorrect form year and faxes.
Source codes
A source code is a four digit identifier / number that SARS uses to capture information on the income tax return. It will usually appear alongside the amount it relates to.
Southern African Customs Union (SACU) Agreement
An agreement that allows for the unrestricted flow of goods and services, and a sharing of customs and excise revenue, between South Africa, Botswana, Namibia, Lesotho and Swaziland.
Southern African Development Community (SADC)
A regional governmental organisation that promotes collaboration, economic integration and technical cooperation throughout Southern Africa. Member states of the SADC include Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
Sovereign debt
Debt issued by a government.
Special request
This is a free text shopping cart for goods and/or services not available on the product catalogue.
Specific duties and taxes
Duties and taxes which are calculated on a basis other than value. Note: The basis for calculation may be, for example : gross or net weight, the number of items, the volume, the length, the alcoholic strength by volume.
Ethyl alcohol obtained from the distillation of various base products to an alcoholic strength of usually more than 60% per volume.
Spot rate
The exchange rate at the date of the transaction.
Salaried taxpayers without allowances return category.
Sub-Saharan Africa
SARS Service Manager
SARS Service Monitoring Office
Stale cheque
A cheque is normally valid for six months from the date of the cheque, after which, the cheque is considered a ‘stale cheque’.
Male adult horse
Standard employment
Any employment where an employee (including scholars and students), is required to render services to a single employer for a period of at least 22 hours in every full week provided that no regard shall be had to — periods of temporary absence of the employee due to leave or exceptional circumstances; or any temporary reduction in working hours imposed by the employer, for instance due to a reduction in the demand of the company’s product, the employer imposes a temporary working week of less than 22 hours.
Standard letter templates
e.g. Final Demand
State Warehouse
Any premises provided by the State for the deposit of goods for the security thereof and of the duties due thereon or pending compliance with the provisions of any law in respect of such goods.
Statement of account
A record for each employer reflecting all entries made with regards to PAYE, UIF and skills development levies. The records also contain sub-records for type of tax for each month.
Status codes
S – suspense
Secondary Tax on Companies is a tax that is imposed on the after-taxed profits of a company that are distributed to its shareholders.
STC Credits
The amount of dividends calculated under section 64J(2) of the Income Tax Act that were subject to STC, that must be utilised by a company to reduce its liability for dividends tax.
Stock dividend
A dividend in specie in the form of additional shares issued by a company for no consideration. Also known as a “scrip dividend” or capitalisation shares.
Stop order
Function on ITS indicating the transaction(s) for which the ITA88 process is introduced against a taxpayer.
Goods intended for consumption by the passengers and the crew on board vessels, aircraft or trains, whether or not sold.
Stores declaration
Documents providing the particulars concerning stores carried on board the means of transport, to be presented as required by the Customs. Note: The Annex to the Convention on Facilitation of International Maritime Traffic, London, 1965, provides for a Ship’s stores declaration (Model Form IMO FAL Form 3). Usually only the following stores need to be listed in detail in the Ship’s stores declaration: narcotics for medical use, tobacco products, beer, spirits, wines. Some countries require some or all of the information to be incorporated in the Ship’s cargo declaration. The Annex to the IMO Convention contains provisions limiting the conditions under which the presentation of Stores declaration can be required, whilst Annex 9 to the Convention on International Civil Aviation, Chicago, 1944, provides for the abolition of such requirement in respect of stores remaining on board an aircraft. Annex A.4. to the Kyoto Convention of 1974 takes into account the provisions of the above instruments.
Stores to be taken away
Goods for sale to the passengers and the crew of vessels and aircraft with a view to being landed, which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels and aircraft used, or intended to be used, in international traffic for the transport of persons for remuneration or for the industrial or commercial transport of goods, whether or not for remuneration (*). (*) Specific Annex J, Chapter 4 of the revised Kyoto Convention.
Street walk
Physical surveillance of a business area to identify persons or entities who should be registered for tax.
Securities Transfer Tax
Submitting entity
It can either be the beneficial owner, the declaring company or regulated intermediary.
Substantial Transformation Criterion
The criterion according to which origin is determined by regarding as the country of origin the country in which the last substantial manufacturing or processing, deemed sufficient to give the commodity its essential character, has been carried out (*). (*) Annex D.1. to the Kyoto Convention of 1974 and Specific Annex K, Chapter 1 of the revised Kyoto Convention.
Summary level supporting data
Data, used for completion of the VAT201,i.e credit note, debit note, contract information, that is obtained from the accounting software and submitted to SARS.
Supporting data
Physical or scanned images of documents supporting the completion of the VAT201.
A natural or legal person (generally a bank or insurance company) who accepts responsibility in due legal form for the financial consequences of non-fulfilment of another’s obligations to the Customs.
Surveillance zone or under the control of customs
Part of the Customs territory in which the possession and movement of goods may be subject to special Customs control measures and which is monitored by Customs for control purposes. The Customs surveillance zone generally includes frontier (border) zones, Customs maritime zones, Customs approved routes, Customs offices and any premises or sites authorised by Customs, on a permanent or temporary basis for the conduct of Customs operations. This definition must be read with Section 10. Goods are deemed imported from such time described in the mentioned section and until legitimate Customs clearance has taken place, shall be deemed to be under Customs control. Examples of the types of areas considered to be “under Customs control” would be as follows: a) Customs maritime zones; b) Air flight control areas of South Africa; c) Wharves within harbour areas where goods are landed or loaded on board vessels; d) Storage areas within the premises of airports capable of accommodating foreign aircraft and / or local aircraft flying out of South Africa’s borders; e) Licensed bonded warehouses; f) Licensed container depots; g) Licensed container terminals; h) Sheds within controlled harbour areas; i) Approved transit sheds; j) Approved railway depots; k) Registered rebate stores; l) Licensed manufacturing warehouses; m) All land border posts.
Control account between SARS bank account and National Treasury bank account.
Sweeping account
Control account between SARS bank account and National Treasury bank account.
SWIFT message
The Society for Worldwide Inter-bank Financial Telecommunication is an electronic communication method used by banks all over the world to correspond with each other in a secure and standardised way.



Tax Administration Act (Act No. 28 of 2011)

Tax Administration Bill
Tariff ceiling
Any pre-set value or quantity, authorized for importation or exportation of given goods, during a specified period, with a reduction of the normal Customs duties, and beyond which the granting of the said tariff reduction may be suspended until the end of the period in question.
Tariff classification of goods
Determination of the tariff subheading in a tariff nomenclature under which particular goods should be classified.
Tariff description
Description of an article or product in accordance with the terminology used in the tariff nomenclature.
Tariff heading (or subheading)
The textual designation in a tariff nomenclature of a single commodity or a single group of related commodities. Notes : 1. For ease of reference, each tariff heading (or subheading) is identified by a code number which is used, inter alia, for the purposes of Customs declarations. For those countries or Customs or Economic Unions using a tariff based on the Nomenclature of the Harmonized Commodity Description and Coding System (generally referred to as the Harmonized System Nomenclature), this code number may be the heading or subheading number in the Nomenclature of the Harmonized Commodity Description and Coding System. 2. In certain countries the term “Tariff item” is used instead of “Tariff heading”.
Tariff Nomenclature
Any classification and coding system introduced by national administrations or Customs or Economic Unions to designate commodities or groups of related commodities for Customs tariff purposes. Notes: 1. At present, a majority of countries base their tariff nomenclatures on the Nomenclature of the Harmonized Commodity Description and Coding System (generally referred to as the Harmonized System Nomenclature), which comprises General Rules for its interpretation, Section and Chapter Notes and a list of headings arranged in systematic order. 2. Some countries and Customs or Economic Unions combine in one system the requirements for Customs tariff and for external trade statistics.
Tax Act
As defined in section 1 of the TAA means the TAA or an Act, or portion of an Act, referred to in section 4 of the SARS Act, excluding the Customs and Excise Act.
Tax Affairs
The tax obligations of a taxpayer. For example, the returns due for all types of taxes (e.g. PAYE, VAT, STC, etc.) are submitted, deferred arrangements are in place for outstanding taxes, registered details are up to dated, etc.
Tax Clearance Certificate (TCC)
A tax clearance certificate (TCC) is issued by SARS to validate the tax status of a taxpayer, specifically with regard to compliance.
Tax deductible receipt
This is a specific receipt that is issued to a donor by an organisation that has been approved by the Commissioner under section 18A of the IT Act. A taxpayer making a bona fide donation in cash or of property made in kind is entitled to a deduction from his taxable income if the donation is supported by the necessary tax deductible receipt.
Tax Directive
A tax directive (IRP 3) is issued by SARS to instruct the employer / fund how to deduct employees’ tax from certain payments where the prescribed tax tables do not cater for certain remuneration or other payments.
Tax offence
In accordance with the definition thereof in section 1 of the TAA, it refers to an offence in terms of a tax Act or any other offence involving fraud on SARS or on a SARS official relating to the administration of a tax Act.
The legal entity that is liable for the various tax products associated with it. This can be an individual, a company, a trust, etc.
Tax period (Employer)
In relation to any employer, as a period of 12 months ending on the last day of February of the relevant tax year or at the option of the employer, an alternate period, in respect of which remuneration is paid or has become due. In relation to an employee, a tax year (1 March to 28/29 February of the next year) or any unbroken period during the tax year —during which the employee was employed by one employer in the Republic in standard employment; or during which any annuity was paid or became payable to him/her by one employer; or such period as the Commissioner considers appropriate in the circumstances, where the Commissioner has in relation to the employment of any employee, issued a ruling to the employer.
Tax period (VAT)
There are five different tax periods. Category A–2 monthly (ending at the end of every odd month) e.g. January, March, May, July, etc.; Category B–2 monthly (ending at the end of every even month).e.g. February, April, June, etc.; Category C–monthly (taxable supplies greater than R30 million per annum); Category D–6 monthly (certain farmers only); Category E–annually (only in exceptional circumstances for connected persons with only one transaction per year); and Category F– four monthly. Due to a change in legislation from 1 July 2015, the four monthly tax period will no longer be available. Vendors that were registered under Category F will be migrated to, either Category A or B.
Tax Practitioner
A natural person who provides tax advice for reward or who for reward completes or assists in the completion of any documents for submission to SARS.
Tax Return Wizard
Refers to the online version of the ITRR that consists of a series of questions used to determine the personalised containers to be created for that particular income tax return.
Tax supplies
Standard-rated and zero-rated goods or services.
Taxable amount
The amount on which tax is payable.
A person or entity who is liable to pay tax.
Taxpayer representative (Contact)
A person who acts on behalf of a registered taxpayer/trader without being registered as a tax practitioner.
Tax Clearance Certificate
Application for a Tax Clearance Certificate in respect of Tenders & Good Standing
Tax Compliance Status
Transfer Duty
Trade, Development and Cooperation Agreement
Tariff Determination Number
Team member: treasury
Team member in revenue accounting at head office level
Technical Reviewer
Technical Reviewer or the Customs Officer in Branch Offices without appointed Technical Reviewers
Temporary admission
The Customs procedure under which certain goods can be brought into a Customs territory conditionally relieved totally or partially from payment of import duties and taxes; such goods must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them (*).
Temporary import
A type of import where the importer’s attention is to later re-export the goods. Duties are not pay at time of importation, but a PP is required to be lodged to cover the duties until re-export is proven when the PP is liquidated and refunded to the declarant.
Temporary storage of goods
This is the storing of goods under Customs control in premises and enclosed or unenclosed spaces approved by the Customs pending lodgement of the Customs declaration and obtaining release. The purpose of a temporary storage facility is to provide for the storage of goods until customs formalities have been complied with and release of the goods has been granted. All temporary storage facilities must be approved by Customs, which reserves the right to request security in an acceptable form.
Tenders include written quotations, proposals and bids
Terms of trade
An index measuring the ratio of export prices to import prices.
Tax Exemption Unit
Transfer Duty Receipt
The carriage of goods coastwise procedure
Some countries and Customs or Economic Unions combine in one system the requirements for Customs tariff and for external trade statistics.
The Republic
The Republic of South Africa
The universal postal union
The inter-governmental organization founded in 1874 by the Treaty of Bern as the “General Postal Union” which, in 1878, was renamed the “Universal Postal Union (UPU)” and which since 1948 has been a specialized agency of the United Nations (*). (*) Specific Annex J, Chapter 2 of the revised Kyoto Convention
Third party
Any person who deals directly with the Customs, for and on behalf of another person, relating to the importation, exportation, movement or storage of goods (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
Third party data
Data obtained for use from third party organisations
This Act
Includes any proclamation, government notice, regulation or rule issued or made or agreement concluded or deemed to have been concluded there under, any agreement contemplated in Section 49 thereof or any taxation proposal contemplated in Section 58 thereof which is tabled in the National Assembly.
The level of income or money earned above which people or companies must pay tax, or must pay a higher rate of tax.
Taxpayer Interface Officer
Tobacco Industry of SA
Customs Tactical Intervention Unit
Trans-Kalahari Corridor
Team Leader
Team Member
Tariff Management System
Tollies and Heifers
Young bulls and cows that have never bred
Training Outside Public Practice
Third Party Appointment
Technology and Process Division
Taxpayer Services
Taxpayer Service Centre
Trusts return category
Trade balance
The monetary record of a country’s net imports and exports of physical merchandise.
Trade facilitation
The simplification and harmonization of international trade procedures, including activities, practices, and formalities involved in collecting, presenting, communicating, and processing data required for the movement of goods in international trade’ Note: This concept refers to the WTO definition of trade facilitation.
Someone registered or licensed in terms of the Customs and Excise Act, such as an importer or warehouse licensee.
Trader Representative

A representative mandated by a Customs and Excise client to:

  1. Capture and submit Customs and Excise related application on behalf of the applicant; or
  2. Make necessary follow-ups (including providing supporting documents, correcting errors or making enquiries) in relation to such application.
Traditional African Beer
Non clear beer made from sorghum or malt within alcoholic strength of usually less than 5% per volume.
Transport document number
The number assigned by a carrier to their contract of carriage with a shipper and normally incorporates the international liner code of the carrier as Part of the number, for example MSCU12345678
Transport unit
Any means of transporting goods suitable for use in a Customs transit operation or under Customs seal. Notes 1. The term transport-unit means : (a) containers having an internal volume of one-cubic metre or more, including demountable bodies; (b) road vehicles, including trailers and semi-trailers; (c) railway coaches or wagons; (d) lighters, barges and other vessels; and (e) aircraft (*). (*) Specific Annex E, Chapter 1 of the revised Kyoto Convention. 2. Approval of transport-units for transport of goods under Customs seal is dealt with in various international instruments, for example, the Kyoto Convention of 1974 (Annex E.1.), the Customs Convention on Containers, 1972, and the Customs Convention on the international transport of goods under cover of TIR carnets (TIR Convention), 1975.
With respect to dividends, a transaction is defined as the declaring of a dividend, the receipt of a dividend from a declaring company or regulated intermediary and the passing of the dividend to a regulated intermediary or the payment of a dividend to beneficial owners.
Transaction period
A transaction period relates to the month in which a dividend was paid or became payable. Each transaction period will have an associated transaction due date. The transaction due date will always be the last business day of the month following the date the dividend was paid or became payable. E.g. if a dividend was paid to a beneficial owner in May, the transaction period will be May and the transaction due date will be the last business day of June.
Transaction year
The tax year during which the employer deducted and paid employees’ tax in respect of remuneration paid or payable to an employee. This could include employees’ tax on remuneration which accrued during a previous tax year.
The Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one (1) Customs office (control area) which is the office of both importation and exportation.
Transhipment Cargo
Cargo landed at a sea port or airport in South Africa from a foreign-going ship or aircraft for the purpose of transferring it to another ship or foreign-going aircraft for onward carriage to a destination outside South Africa
Refer to definition “removal of goods in transit”.
Transit bond – note
National Customs document providing authority for goods to be conveyed in Customs transit without prior payment of import duties and taxes, generally containing all the particulars necessary for the assessment, where appropriate, of import duties and taxes, and an undertaking, covered by security, to produce the goods at the Customs office of destination with Customs seals intact.
Transit shed
A storage facility, approved by Customs, normally situated within a Customs controlled area at the place of entry / exit for the purpose of temporary storage of unlearned goods until due entry has taken place in terms of Section 38.
(1) Any person who temporarily enters the territory of a country in which he or she does not normally reside (“non-resident”) or who leaves that territory; and (2) any person who leaves the territory of a country in which he or she normally resides (“departing resident”) or who returns to that territory (“returning resident”) (*). (*) Specific Annex J, Chapter 1 of the revised Kyoto Convention.
Traveller card

A form used by persons upon arrival in and departure from South Africa to declare possession of restricted or prohibited goods, goods in excess of the duty free allowance (DFA), currency held and goods intended for commercial trade.


A function within Revenue Accounting.

Tax Reference Number

Any Trust fund consisting of money or other assets which are administered and controlled by a person acting in a fiduciary capacity, and the person is appointed under:
  • A deed of Trust or
  • By agreement or
  • Under the will of a person that has died.

See more information on the different types of Trust.

In addition to every person appointed or constituted as such by act of parties, by will, by order or declaration of court or by operation of law, includes an executor or administrator, tutor or curator, and any person having the administration or control of any property subject to trust, usufruct, fideicommissum or other limited interest or acting in any fiduciary capacity or having, either in a private or in an official capacity, the possession, direction, control or management of any property of any person under legal disability.
Turnover Tax
Taxpayer, Trader, Tax practitioner and Taxpayer representative
Turnover tax
A form of presumptive tax which is calculated on the tax liability of a taxpayer based on certain assumptions. Presumptive taxes are used mainly in developing countries where formalisation and accurate record-keeping are difficult for a large portion of the businesses.


Unified Taxpayer, Trader & Traveller Master (refers to a SARS database of taxpayer information).
Unemployment Insurance
The Unemployment Insurance Act, no 63 of 2001.
UI Commissioner
The Unemployment Insurance Commissioner.
The Unemployment Insurance Contributions Act, no 4 of 2002.
Unemployment Insurance Fund
UIF contributions
Contributions to the UIF are the compulsory contributions payable in terms of the UIC Act to fund the benefits available to workers in terms of the UI Act. Effective 1 April 2002, contributions collected by SARS are transferred to the UIF which is administered by the UI Commissioner.

Unacceptable cargo descriptions
An everyday language description of the goods for identification purposes is acceptable for cargo reporting purposes. Vague descriptions and general terms such as “Freight All Kinds”, “Consolidated Cargo”, “General Cargo”, “Various”, etc. are not acceptable.

Unaccompanied baggage
Personal items that are imported into or exported from South Africa independently from the baggage that accompanied a traveller on his/her flight and do not include commercial goods.
United Nations Conference on Trade and Development.
Underground economy
The economy which operates outside of the rules and regulations of the country.
Unit labour costs
The cost of labour per unit of output. Calculated by dividing average wages by productivity (output per worker per hour).
Unlisted Security
Any security other than a listed security (generally refers to shares not listed on a stock exchange).
Unmarked Illuminating Kerosene
Unmarked Paraffin
Unprocessed minerals
Gold, Diamonds
Unrestricted equity instrument
Refers to an equity instrument which is not a restricted equity instrument (as defined in s 8C of the IT Act). In other words, it is not subject to a restriction that prevents the taxpayer from freely disposing of that equity instrument, etc.
Unsolicited relevant material
Documents not requested by SARS.
Urgent consignments
Goods which require rapid clearance as a matter of priority due to: – their nature; – their meeting a fully justified urgent need. Note: Urgent consignments should be granted priority and rapid clearance.

Unique Reference Number
User Requirement Specification
United States of America
US Dollars ($)
Uncertified Securities Tax
Unified Taxpayer, Trader and Traveller Master


Valuation Agreement
Price actually paid or payable for the goods.
Value of debt/outstanding debt
Includes capital tax amount, additional tax, duties, levies, penalties and interest.
Value of the total of the aggregate of all assets outside South Africa
For the SVDP purposes, the value is the market value determined in the relevant foreign currency translated to South African Rand at the spot rate at the end of the tax period in which the highest value fell. The highest value of the total of the aggregate of all assets outside South Africa derived from undeclared income and accumulated between or deemed to be between 1 March 2010 and 28 February 2015 will be included in the taxable income and subject to tax in South Africa.
Variable rate
Is defined as a rate determined with reference to an interest or indexation rate or similar factor, being a rate or factor that varies or may vary during the term of the instrument.
VAT (Value-Added Tax) is an indirect tax based on consumption of goods and services in the economy. Revenue is raised for the government by requiring certain traders or vendors to register and to charge VAT on taxable supplies of goods or services.
The Value-Added Tax Act, No 89 of 1991.
Vendor Declaration form
Value-Added Tax Statement of Account
Venture Capital Company
Value Determination Number
Voluntary Disclosure Programme
Voluntary Disclosure Unit
Any aircraft, train, motor car, van, truck, cart, barrow or other conveyance of any kind whatsoever and includes the fittings, furnishings and equipment thereof and also pack animals and their harness and tackle.
A person who is liable to register for VAT in terms of the VAT Act.
If goods were packed under Customs supervision and sealed in Customs presence and the seal numbers noted on the Application for Special/Extra Attendance (DA 73) only a verification process at the exit point is required of said seal number

Verified Gross Mass (VGM)
This report reports on the comparison of the declared containers’ gross mass to the consignment or consignments mass in the container, by utilising verified gross mass and a container weight table. Container mass of a specific container type varies. If the difference between the net mass of the content of the container and the declared mass is more than allowed difference of the containers weight, the container is marked as non-compliant. Non-compliant containers are reported.

Refers to a wine with flavouring or flavouring agents.
Very Important Person
Taxpayer, Trader, Tax Practitioner, Taxpayer representative who comes to a SARS office for service.
A Voucher of Correction document used to correct errors or / and omissions on the original Customs declaration.
Vat Refund Administrator
Vendor Risk Profiling


Western Cape
World Customs Organisation
Weaned kids
Very young goats
Weaned lambs
Immature sheep newly weaned
Sterilised ram
Warehouse Inventory Management System
An alcoholic beverage obtained through the natural fermentation of fresh grapes to an alcoholic strength of usually between 8% and 15% per volume.

World Economic Forum (WEF)
A Swiss non-profit foundation committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas. Meets annually at Davos, Switzerland.

Written Communication
Any form of communication carried out in written form either manually or electronically and which cannot be said to be communicated orally. Examples include email, written letters, fax transmissions, memorandums, etc.


X coded
Unknown cases
Extensive Business Reporting Language
Extensive Mark-up Language


Year of assessment
The year of assessment for taxpayers covers a period of 12 months. For individuals and Trusts, the commencement date of the year of assessment starts on 1 March and ends on the 28/29 February each year. For Companies and Close Corporations the year of assessment is the applicable financial year.


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