SOURCE CODE DESCRIPTIONS IRP5 code 4001

Deduction codes

In the electronic file IRP5 code 4001 is used for: Total pension fund contributions paid and ‘deemed paid’ by employee (if applicable), excluding the value of code 4585
· ‘Deemed paid’ by employee is the value of the taxable benefit (code 3817) included in the income of the employee.
· Prior to the 2017 year of assessment, this code is only applicable to ‘Current pension fund contributions paid by employee’.

The prescribed Length of IRP5 code 4001 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