SOURCE CODE DESCRIPTIONS IRP5 code 4025

Deduction codes

In the electronic file IRP5 code 4025 is used for: Medical contribution paid by employee allowed as a deduction for employees’ tax purposes. This code is not applicable with effect from the 2010 year of assessment and must not be included in any other code.

The prescribed Length of IRP5 code 4025 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