SOURCE CODE DESCRIPTIONS IRP5 code 3801

Fringe benefit codes

in the electronic file IRP5 code 3801 is used for: General fringe benefits (PAYE). All fringe benefits, which do not comply with any of the descriptions listed under fringe benefits, must be added together and reflected under this code on the certificate, excluding Long Service Awards, which must be declared under code 3835/3885, i.e. where the Long Service Award consists of an ‘Acquisition of an asset at less than the actual value’ and/or the Right of use of an asset (other than residential accommodation or any motor vehicle)

Examples include:
· Employer-paid premiums for the benefit of an employee to an employer-owned Income Protection Scheme
· Acquisition of an asset at less than the actual value and/or insurance policies ceded
· Right of use of an asset (other than a motor vehicle)
· Meals, refreshments and meal and refreshment vouchers
· Free or cheap accommodation or holiday accommodation
· Low interest or interest free loans and subsidies
· Uniforms that are not clearly distinguishable from ordinary clothing

Code 3851 MUST only be used for foreign service income. With effect from 2010 year of assessment, amounts previously included under codes 3803/3853, 3804/3854, and3807/3857, must be included in this code (3801/3851). Amounts previously declared under codes 3805/3855, 3806/3856, 3808/3858 and 3809/3859 must be included under this code (3801/3851) in respect of the 2010 to 2012 years of assessment.

The prescribed Length of IRP5 code 3801 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