SOURCE CODE DESCRIPTIONS IRP5 code 3835

Fringe benefit codes

In the electronic file IRP5 code 3835 is used for: Long Service Award (Excl if IRP5 code 3622 + IRP5 code 3835 <= R 5000. PAYE if IRP5 code 3622 + IRP5 code 3835 > R 5000). A Long Service Award given to an employee that complies with the initial 15 years and any subsequent 10 years unbroken periods of service requirement – see relevant legislation listed below. The full value (before excluding any amount) of a Long Service Award consisting of taxable benefits referred to below, that qualify for the R5000 exclusion, must be declared under this code (3835/3885). Long Service means an initial unbroken period of service of not less than 15 years or any subsequent unbroken period of service of not less than 10 years [par 5(4) of the Seventh Schedule]. The Long Service Award consisting of taxable benefits listed below, together with the Long Service Cash Award, will qualify for an exclusion of not more than R5000:
o Acquisition of an Assess at Less than Actual value [par 5(2)(b) of the Seventh Schedule]
o Right of Use of an Asset (other than Residential accommodation and any motor vehicle) [par 6(4)(d) of the Seventh Schedule]
o Free or Cheap Services [par 10(2)(e) of the Seventh Schedule].
Code 3885 MUST only be used for Long Service Awards while on Foreign Service on date of accrual. Valid from 2023 Year of Assessment

The prescribed Length of IRP5 code 3835 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