SOURCE CODE DESCRIPTIONS IRP5 code 3652

Normal Income Codes

in the electronic file IRP5 code 3652 are used for: Non-Taxable Income (Excl). Any non-taxable income excluding foreign service remuneration for RSA residents that are exempt i.r.o. section 10(1)(o)(ii), non- taxable allowances and fringe benefits. This code accommodates all payments of a capital nature. IRP5 5 code 3652 is specifically for foreign services income.
Examples include:
· Non-taxable pension paid on a regular basis (e.g. war pension, etc.) excluding pension for foreign service income
· Non-taxable income of a capital nature
· Non-taxable portion of an arbitration award, where applicable.
· Non-taxable portion of a compulsory annuity purchased from a retirement fund (e.g. due to non-residency and the relevant DTA).
· Non-taxable (capital element) of a section 10A voluntary purchased annuity.
· Non-taxable amounts paid on a regular basis (excluding lump sums) from a loss of income policy with effect from 1 March 2015 (2016 year of assessment).

The prescribed Length of IRP5 code 3652 in the electronic file is: N15.

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