SOURCE CODE DESCRIPTIONS IRP5 code 3769

Allowance codes

in the electronic file IRP5 code 3769 is used for: Dividends not exempt i.r.o. par (dd) of the proviso to s10(1)(k)(i) (PAYE). Dividends in respect of a restricted equity instrument as defined in section 8C to the extent that the restricted equity instrument was acquired in circumstances contemplated in section 8C. However, the dividends in respect of any of the following equity instruments are exempted (and are to be excluded from ‘remuneration’ under code 3769):
· The restricted equity instrument is an equity share, other than an equity share that would have constituted a hybrid equity instrument as defined in section 8E(1) but for the three-year period requirement contemplated in that definition.
· The dividend constitutes an equity instrument as defined in section 8C.
· The restricted equity instrument constitutes an interest in a trust and, when that trust holds shares, all those shares constitute equity shares, other than equity shares that would have constituted hybrid equity instruments as defined in section 8E(1) but for the three-year period requirement contemplated in that definition.
Code 3769 MUST only be used for foreign service income. Applicable from 2018.

The prescribed Length of IRP5 code 3769 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