Glossary - South African Business & Tax Terms A-Z
Quick reference for all important acronyms and terms used in South African business registration, tax compliance, skills development, and industry classification.
| Acronym | Full Name | Definition |
|---|---|---|
| SIC | Standard Industrial Classification | A 5-digit coding system (SIC 7th Edition) used to classify all economic activities in South Africa. Published by Statistics South Africa, based on UN ISIC Rev 4. Used by CIPC, SARS, and SETAs. |
| SETA | Sector Education and Training Authority | One of 21 statutory bodies responsible for skills development within specific economic sectors. Established under the Skills Development Act, 1998. |
| CIPC | Companies and Intellectual Property Commission | The government agency responsible for company registration, intellectual property, and compliance with the Companies Act 71 of 2008. |
| SARS | South African Revenue Service | The national tax authority responsible for collecting income tax, VAT, customs duties, and administering tax incentives like ETI. |
| ETI | Employment Tax Incentive | A wage subsidy (2014-present) that reduces PAYE for employers hiring workers aged 18-29 earning under R6,500/month. Excluded for SIC codes in Division 84. |
| SDL | Skills Development Levy | A compulsory levy of 1% of payroll paid by employers with annual payroll above R500,000. Collected by SARS, 80% transferred to the employer's SETA. |
| PAYE | Pay-As-You-Earn | The system by which employers withhold income tax from employees' salaries and pay it to SARS on their behalf. |
| OFO | Organising Framework for Occupations | A classification system for occupations in South Africa, used by SETAs for skills planning and workplace skills development plans. |
| NQF | National Qualifications Framework | A 10-level system managed by SAQA that organises all South African qualifications from Grade 9 (Level 1) to Doctoral Degree (Level 10). |
| SAQA | South African Qualifications Authority | The body that oversees the NQF and ensures quality and standards of qualifications in South Africa. |
| BEE | Black Economic Empowerment | A government policy to redress inequalities by giving economic advantages to previously disadvantaged groups. |
| B-BBEE | Broad-Based Black Economic Empowerment | The expanded BEE framework with a scorecard system covering ownership, management, skills development, enterprise development, and socio-economic development. |
| CIDB | Construction Industry Development Board | The regulatory body for the construction industry, responsible for contractor registration and grading. |
| FSCA | Financial Sector Conduct Authority | The market conduct regulator for financial institutions, replacing the FSB since 2018. |
| SARB | South African Reserve Bank | The central bank of South Africa, responsible for monetary policy, banking regulation, and financial stability. |
| WSP | Workplace Skills Plan | An annual plan submitted by employers to their SETA detailing planned training interventions for the coming year. |
| ATR | Annual Training Report | A report submitted alongside the WSP detailing training actually conducted in the previous year. |
| JSE | Johannesburg Stock Exchange | The largest stock exchange in Africa, where public companies (Ltd) trade their shares. |
| VAT | Value-Added Tax | An indirect tax of 15% charged on most goods and services in South Africa. Businesses with turnover above R1 million must register. |
| UIF | Unemployment Insurance Fund | A fund providing short-term relief to workers who become unemployed. Contributions are 1% from employer and 1% from employee. |
| ISIC | International Standard Industrial Classification | The UN's global system for classifying economic activities. South Africa's SIC 7 is based on ISIC Revision 4. |
| NAICS | North American Industry Classification System | The industry classification used by the USA, Canada, and Mexico. Not used in South Africa but sometimes referenced for international comparisons. |
| ITR14 | Income Tax Return for Companies | The annual tax return form that South African companies submit to SARS, requiring SIC code and profit code. |
| EMP201 | Monthly Employer Return | The SARS form for monthly PAYE, SDL, and UIF payments. ETI is claimed on this form. |