SOURCE CODE DESCRIPTIONS IRP5 code 3753

Allowance codes

in the electronic file IRP5 code 3753 is used for: Reimbursive travel allowance (Excl). This code is only applicable where:
· the reimbursement rate used by the employer DOES NOT EXCEED the prescribed rate (par 4 of Fixing of Rate per Kilometre i.r.o. Motor Vehicle Regulation), and
· the employee DOES NOT receive any other form of compensation for travel and in respect of the full value of the reimbursement

Note: This code must not be used together with code 3751, 3752 and/or 3772

Example:
If the prescribed rate is R3.61/km and the employer reimbursed the employee at R 3.50/km for 12540 business km’s travelled during the 2019 year of assessment, and no other compensation for travel was paid, the total reimbursive travel allowance of R 43 890 (R3.50 x 12540 km’s) must be reflected under 3753

Note:
· Code 3753 MUST only be used for foreign service income.
· The prescribed maximum business kilometres for years of assessment prior to 2018 are 8000 km.
· The prescribed maximum business kilometres for the 2018 year of assessment are 12 000 km.
· No business kilometre limit is applicable from the 2019 year of assessment

The prescribed Length of IRP5 code 3753 in the electronic file is: N15

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