TITLE: Determine what is taxable income.
Range: within context, excluding specialist areas covered by current tax
UNIT STANDARD NUMBER:
LEVEL ON THE NQF:
Business, Commerce and Management Studies
Finance, Economics and Accounting
People credited with this unit standard are able to establish what is gross income,
determine which income is exempt from tax and calculate deductions and allowances in
order to determine the portion of taxable income.
LEARNING ASSUMED TO BE IN PLACE:
• Unit standards in accounting at NQF level 4.
SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:
Specific Outcome 1:
Determine what is gross income.
1.1 Receipts and accruals in cash or otherwise are identified as defined in the relevant
1.2 Both the true and deemed source of an amount is identified per Section 9 of the
Income Tax Act
1.3 The income or capital nature of receipts and accruals is determined in accordance
with the relevant legislation
1.4 Receipts and accruals of amounts specifically included in gross income are
identified per gross income special inclusions.
1.5 The deemed accruals of certain amounts are identified per the relevant tax
Specific Outcome 2:
Determine and advise on which income is exempt from tax.
2.1 Certain interest accruing to non-residents is identified per the relevant section of the
Income Tax Act
2.2 The taxation of lump sums on retirement or retrenchment is determined in
accordance with the relevant tax legislation
2.3 Interest from certain investments that is exempt from normal tax is identified per
regulations in the Income Tax Act
2.4 Dividends received or accrued that are exempt from normal tax are identified
according to current tax legislation