SOURCE CODE DESCRIPTIONS IRP5 code 3651 – Validation Rules

Normal Income Codes

The Validation Rules for IRP5 code 3651 in the electronic file are:
· A maximum of 20 income codes must be used. If there are more than 20 codes, they must be combined in accordance with the rules defined in section 5 of this document
· At least one income code with a value greater than zero must be completed, except if code 3615/3665 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)
· For Years of Assessment 2003 to 2018, such income as paid to a director must be reflected under code 3615.
· Code 3651 MUST only be used for foreign service income.
· With effect from 2010 to 2019 years of assessment, amounts previously included under code 3607/3657 must be included in this code (3601/3651).
· Amounts previously declared under codes 3603/3653 and 3610/3660 must be included under this code (3601/3651) in respect of the 2010 to 2012 year of assessment.

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax