SOURCE CODE DESCRIPTIONS IRP5 code 3902

Lump sum codes

In the electronic file IRP5 code 3902 is used for: Pension / RAF (PAYE). Lump sum accruing prior to 1 March 2009 from a Pension/Retirement annuity fund in respect of withdrawal (e.g. resignation, transfer, surplus apportionment, etc.) , including ‘Unclaimed benefits’ only claimed and paid to a member of a Pension fund from 1 March 2009. Code 3952 MUST only be used for foreign service income. he value of this code must be included in the value of code 3920 or 3921 (where applicable) with effect from the 2010 year of assessment – i.e. only if the date of accrual is from 1 March 2009). Not applicable from 2010.

The prescribed Length of IRP5 code 3902 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