SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the basic principles of tax on individuals or businesses, trading and professional activities 
SAQA US ID UNIT STANDARD TITLE
252142  Demonstrate knowledge and understanding of the basic principles of tax on individuals or businesses, trading and professional activities 
ORIGINATOR
Task Team - Taxpayer Education 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard provides a basic understanding of business-related tax implications. It is intended for registered taxpayers who may be business individuals trading as sole traders or partnerships or business entities registered as close corporations. It does not qualify learners to be tax advisors to complex business entities or corporates. It will be useful for learners in small businesses, wealth managers, medical scheme advisors and administrators, community development workers, trade union representatives and shop stewards, entrepreneurs, administrative assistants in law firms, development, immigration and emigration agencies learners who work in financial services organisations (including insurance, investment and banking), pay roll administration, human resources, management, Employee Assistance Programmes (EAP), and individuals in their personal capacities.

The qualifying learner is capable of:
  • Analysing the different tax products that apply to a specific business entity.
  • Applying knowledge of Value-Added Tax (VAT) requirements to a specific entity.
  • Completing a tax return for a business entity.
  • Explaining the individual's rights and responsibilities during a South African Revenue Services (SARS) investigation. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Tax products include, but are not limited to Income Tax; Pay- As-You-Earn (PAYE) and Provisional tax; Value-Added Tax (VAT) UIF, Skills Development Levy and Customs and Excise.
  • Financial records include, but are not limited to, records of partnership agreements, stock register, asset register, wage register, invoices, receipts and source documents.
  • The reduction process includes gross income, exemptions, deductions and taxable income.
  • Supplies refer to goods and services. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the different tax products that apply to a specific business entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Tax products applicable to a specific entity are identified and an indication is given of the registration requirements for each product. 

    ASSESSMENT CRITERION 2 
    Duties related to specific business transactions are explained with reference to the requirements and when each is applicable. 

    ASSESSMENT CRITERION 3 
    Business activities that incur duties and levies administered by the South African Revenue Service (SARS) are analysed for a specific business entity. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of Value-Added Tax (VAT) requirements to a specific entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concepts of exempt, zero rated and standard rated supplies are explained with examples. 

    ASSESSMENT CRITERION 2 
    The concepts of input tax and output tax are explained in terms of the VAT system. 

    ASSESSMENT CRITERION 3 
    The completion and submission of VAT returns are explained with reference to payments, interest and penalties. 

    ASSESSMENT CRITERION 4 
    The requirements for tax invoices and retention periods are explained with examples. 

    ASSESSMENT CRITERION 5 
    The importance of threshold in registering for VAT is explained with reference to the consequences of non-compliance and the implications of voluntary registration. 

    SPECIFIC OUTCOME 3 
    Complete an income tax return for business activities. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Financial records required to draw up a financial statement are identified and an indication is given of how these are used to complete a tax return. 

    ASSESSMENT CRITERION 2 
    The difference between records for accounting purposes and records for tax purposes is explained with examples. 

    ASSESSMENT CRITERION 3 
    The reduction process is explained with reference to the determination of taxable income. 

    ASSESSMENT CRITERION 4 
    A tax return is completed for a specific business entity. 

    ASSESSMENT CRITERION 5 
    The application of residence based tax is explained with reference to foreign income. 

    SPECIFIC OUTCOME 4 
    Explain the individual's rights and responsibilities during a SARS investigation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The SARS verification process is explained with reference to declarations on submitted returns. 

    ASSESSMENT CRITERION 2 
    The individual's right to recourse is explained with reference to unfair assessments. 

    ASSESSMENT CRITERION 3 
    The procedures for lodging queries, requests for correction and/or objection and appeals are explained with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking has been made in completing a tax return for business activities. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself and his/her activities responsibly and effectively in collating and retaining documentation required to support a tax return. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in completing a tax return for business activities. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49256   Further Education and Training Certificate: Counselling  Level 4  NQF Level 04  Reregistered  2023-06-30  HW SETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.