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 personal income tax 
SAQA US ID UNIT STANDARD TITLE
252143  Demonstrate knowledge and understanding of the basic principles of personal income tax 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
117127  Describe and apply the basic principles of personal income tax  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
Learners who achieve this Unit Standard can understand how tax legislation affects them directly through employment, pension and earnings and indirectly through spending. It is intended for registered taxpayers who may be employees, pensioners or provisional taxpayers. It will be useful for Community Tax Helpers who assist the general public with tax returns and who educate the public on tax issues and for individuals who give financial advice. It targets learners with at least a Further Education and Training level of education, who want to know more about personal tax responsibilities. It will not qualify learners as tax specialists. 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:
  • Explaining why we pay taxes.
  • Explaining the individual's tax liabilities and duties with regard to income tax.
  • Completing a personal tax return.
  • Investigating indirect taxes in South Africa.
  • Interpreting the responsibility of the South African Revenue Service (SARS) to the taxpayer. 

  • 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 returns include annual and provisional tax returns.
  • Remuneration includes salary, wages, overtime earnings, bonuses, commission income and foreign earnings.
  • Income other than remuneration includes, but is not limited to, investment income, capital gains, rental; income and foreign income, royalties, additional work, and performance awards.
  • Limitations on deductions include, but are not limited to, Retirement Annuities, Medical and Travelling.
  • Indirect taxes include, but are not limited to, stamp duty, transfer duties, estate duty, donations tax, uncertificated securities tax (UST).
  • Other levies and duties collected by SARS include airport tax, customs duties or importation and Skills Levy.
  • Documents to be retained for tax purposes include, but are not limited to IRP5, IT3B, bank statements, investment details and medical expenses.
  • A tax return should be completed for own situation. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why we pay taxes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The purposes of taxation are explored with reference to its importance to a country's economic and social wellbeing and the main categories of people and entities from which the government collects taxes. 

    ASSESSMENT CRITERION 2 
    The main emphasis in the South African Government's current budget is interpreted and an indication is given of Governments current priorities. 

    ASSESSMENT CRITERION 3 
    Ways in which government is attempting to improve tax collection and/or widen its tax base are explained and an indication is given of the potential impact of improved and wider tax collection on both the government and the individual taxpayer. 

    SPECIFIC OUTCOME 2 
    Explain the individual's liabilities and duties with regard to income tax. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An individual's legal responsibility to register as a taxpayer and complete tax returns is explained and an indication is given of the implications of non-compliance. 

    ASSESSMENT CRITERION 2 
    The concept of a provisional taxpayer is explained and an indication is given of when an individual would qualify as a provisional taxpayer. 

    ASSESSMENT CRITERION 3 
    Information required to register as a taxpayer is collated and analysed to establish registration status. 

    ASSESSMENT CRITERION 4 
    The difference between Standard Income Tax on Employees (SITE) and Pay-As-You-Earn (PAYE) is explained and an indication is given of when the individual is liable for each. 

    ASSESSMENT CRITERION 5 
    The functions and uses of the IRP5 and IT3 (a), (b) and (c) are explained with reference to specific examples. 

    ASSESSMENT CRITERION 6 
    Tax avoidance and tax evasion are compared with reference to tax planning and current legislation. 

    SPECIFIC OUTCOME 3 
    Complete a personal tax return. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different types of remuneration are discussed with reference to the tax implications of each. 

    ASSESSMENT CRITERION 2 
    Income other than remuneration is discussed with reference to the tax implications of each type. 

    ASSESSMENT CRITERION 3 
    Fringe benefits and allowances are interpreted with reference to salaried employees. 

    ASSESSMENT CRITERION 4 
    The concept of residence based taxation is explained with reference to the implications for foreign incomes and deductions. 

    ASSESSMENT CRITERION 5 
    Current limitations on deductions prescribed in the Income Tax Act are analysed in order to calculate tax liability. 

    ASSESSMENT CRITERION 6 
    A tax return for a natural person is completed correctly and an indication is given of the kind of documents that should be retained for tax purposes. 

    ASSESSMENT CRITERION 7 
    The avenues available for recourse if a taxpayer is in disagreement with an assessment are explained with reference to manual and electronic submissions. 

    SPECIFIC OUTCOME 4 
    Investigate indirect taxes in South Africa. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Examples of indirect taxes are identified and an indication is given of the current rates of taxation on each. 

    ASSESSMENT CRITERION 2 
    The basic principles of Value-Added Tax (VAT) are explained with examples. 

    ASSESSMENT CRITERION 3 
    Other levies and duties collected by SARS are identified and an indication is given of how each impacts on the individual. 

    SPECIFIC OUTCOME 5 
    Interpret the responsibility of the South African Revenue Service (SARS) to the taxpayer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Ways that SARS has of checking information submitted in tax returns are investigated with reference to third party information. 

    ASSESSMENT CRITERION 2 
    The responsibility of SARS for communications, training and the provision of information is discussed with reference to interpretation notes and assisting taxpayers to understand the tax legislation. 


    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 determining own registration status. 

    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. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by interpreting the emphasis in the South African Government's current budget and Governments current priorities. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to participate as a responsible citizen in the life of the local and national community by understanding why citizens pay tax and the relationship of tax collected to economic and social wellbeing. 

    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 
    This unit standard replaces unit standard 117127, "Describe and apply the basic principles of personal income tax", Level 4, 3 credits. 

    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.