SOURCE CODE DESCRIPTIONS IRP5 code 4582 – Validation Rules

The Validation Rules for IRP5 code 4582 in the electronic file are:
• Conditional. All deductions and contributions that have a value must be reported, and those that do not have a value must not be reported
• A maximum of 12 deduction codes must be used. If there are more than 12 codes to be output, they must be combined in accordance with the rules defined
• If the certificate type is ITREG this field must not be completed.
• Cents must be omitted (decimal amount is invalid)
• No negative amounts are allowed
• Code 4582 is only valid from the 2017 year of assessment
• If year of assessment is 2017 or 2018, then:
o Code 4582 is mandatory if the sum of codes 3701, 3702, 3802, and 3816, is greater than zero
o Code 4582 must not be greater than 80% of the sum of codes 3701, 3702, 3802, and 3816,
o If only code 3702 is completed, then code 4582 may be zero
o Code 4583 is mandatory if the sum of codes,3751, 3752, 3852 and 3866 is greater than zero
o Code 4583 must not be greater than 80% of the sum of codes,3751, 3752, 3852 and 3866
o If only code 3752 is completed, then code 4583 may be zero
• From year of assessment 2019:
o Code 4582 is mandatory if the sum of codes 3701, 3802, and 3816, is greater than zero
o Code 4582 must not be less than 20% or greater than 80% of the sum of codes 3701, 3802, and 3816
o Code 4583 is mandatory if the sum of codes 3751, 3852 and 3866 is greater than zero
o Code 4583 must not be less than 20% or greater than 80% of the sum of codes 3751, 3852 and 3866

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

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