SOURCE CODE DESCRIPTIONS IRP5 code 3770

Allowance codes

in the electronic file IRP5 code 3770 is used for: Dividends not exempt i.r.o. par (ii) of the proviso to s 10(1)(k)(i) (PAYE). Any dividend received by or accrued to a person in respect of services rendered or to be rendered or in respect of or by virtue of employment or the holding of any office, other than a dividend received or accrued in respect of a restricted equity instrument as defined in section 8C held by that person or in respect of a share held by that person. Code 3770 MUST only be used for foreign service income. Applicable from 2018 YoA.

The prescribed Length of IRP5 code 3770 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