SOURCE CODE DESCRIPTIONS IRP5 code 7005 – Validation Rules

The Validation Rules for IRP5 code 7005 in the electronic file are:
• Mandatory if code 3026 is populated with a “Y”
Note: If Code 3026 is populated with “N” or not completed, this field must not be completed
• Value can only be 0,1, 2 or 3
o 0 – if the employee does not qualify for ETI for the specified month
o 1 – if the employee qualifies for ETI for the specified month and the specified month is in the first 12-month period
o 2 – if the employee qualifies for ETI for the specified month and the specified month is in the second 12-month period
o 3 – if the employee qualifies for additional ETI (increased ETI due to COVID19)
• Data for a full period of reconciliation must be submitted.
• This field can only be completed if YoA >= 2018
• if YoA is 2021, then option 3 only applicable if Month (code 7006) is 04, 05, 06, or 07
• If YoA = 2022, then option 1 is only applicable if:
o Month (code 7006) is equal to 03, 04, 05, 06 or 07 and ETI Employment date (code 3190) is on or after 01/10/2013
o Month (code 7006) is equal to 08, 09, 10 or 11, and:
 If ETI SEZ code is (code 7009) is completed.
Note: ETI Employment date may be before, on or after 01/10/2013 in this instance
 If ETI SEZ code is not completed and ETI Employment date (code 3190) is on or after 01/10/2013
o Month (code 7006) is equal to 12, 01 or 02, and ETI Employment date (code 3190) is on or after 01/10/2013
• If YoA = 2022, then option 2 is only applicable if ETI Employment date (code 3190) is on or after 01/10/2013
• If YoA = 2022, then option 3 is only applicable if Month (code 7006) is equal to 08, 09,10 or 11
• If YoA >= 2023, then option 1 and 2 is only applicable if ETI Employment date (code 3190) is on or after 01/10/2013
• If the certificate type is ITREG this field must not be completed

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