SOURCE CODE DESCRIPTIONS IRP5 code 4006

Deduction codes

In the electronic file IRP5 code 4006 is used for: Total retirement annuity fund contributions paid and ‘deemed paid’ by employee (if applicable).
· ‘Deemed paid’ by employee is the value of the fringe benefit (code 3828) included in the income of the employee.
· Prior to the 2017 year of assessment, this code is only applicable to ‘Current retirement annuity fund contributions paid by employee’.

The prescribed Length of IRP5 code 4006 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