SOURCE CODE DESCRIPTIONS IRP5 code 7004

Employees’ Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 7004 is used for: Monthly Calculated ETI. This indicates the amount of the employment tax incentive available to the employer for the employee.

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

The prescribed Length of IRP5 code 7004 in the electronic file is: N11.2