In this module an introduction to taxation as a discipline in the South African tax environment is provided. The income tax concepts covered in this module are gross income, special inclusions, exempt income, general deductions, special deductions, prohibited deductions and allowed assessed losses. The implications of a capital gains tax event, specific sections of the Income Tax Act applicable on individuals as well as fringe benefits and specific allowances for individuals are discussed. Concepts such as the prepaid tax system, tax implications of donations tax events as well as the tax implications of a deceased person will be covered. Finally an introduction to the basic principles of VAT is included.