SOURCE CODE DESCRIPTIONS IRP5 code 4120

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4120 is used for: Additional Medical Expenses Tax Credit if employee ≥65 allowed by Employer for PAYE Purposes. This code is only applicable from the 2017 year of assessment.

The prescribed Length of IRP5 code 4120 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