SOURCE CODE DESCRIPTIONS IRP5 code 4582

Deduction codes

In the electronic file IRP5 code 4582 is used for: The portion of the following allowances and benefits which represents ‘remuneration’, but limited to
· The portion (80 or 20%) of the allowance and benefit which is subject to PAYE:
o Travel allowance (3701),
o Value of the Use of motor vehicle acquired by employer NOT via an Operating Lease (3802)
o Value of the Use of motor vehicle acquired by employer via an Operating Lease (3816)
· If Year of Assessment is 2017 or 2018, the portion of the Reimbursive travel allowance (only 3702 and NOT 3703) which is ‘remuneration’:
o 80 or 20% of 3702 is ‘remuneration’ where the reimbursement rate paid by the employer exceeds the prescribed rate
o where the reimbursement rate paid by the employer does NOT exceed the prescribed rate, 3702 is NOT ‘remuneration’ and should therefore not be included under code 4582 .
-although Employers are currently not required to withhold PAYE from this reimbursement.
· Code 3702 Reimbursive travel allowance must be excluded from 4582 as from 2019 Year of Assessment
The value of this code represents the total of the amounts reflected under each of the above codes which are ‘remuneration’ for the purposes of the allowable deduction i.r.o. pension, provident and retirement fund contributions [section 11 F of the Income Tax Act]. Applicable from 2017 YoA. Note amendments effective from 2019 YoA – exclude 3702

The prescribed Length of IRP5 code 4582 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