SOURCE CODE DESCRIPTIONS IRP5 code 4116 – Validation Rules

The Validation Rules for IRP5 code 4116 in the electronic file are:
• Must only be used if Type of Certificate (code 3015) is IRP5 or IT3(a)
• Value can be zero (0.00)
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Only valid if Year of Assessment (code 3025) is 2013 or later
• Must only be completed if Nature of Person (3020) is A, B, C, M N, or R
• For years of assessment 2013 and 2014, this field is mandatory if any value is completed for Medical Scheme Contributions (code 4005) and the employee is under 65 years – validate to Date of Birth (code 3080).
• For years of assessment 2013 and 2014, this field must not be
completed if the employee is 65 years and older – validate to Date of Birth (code 3080.
• From 2015 year of assessment, this field is mandatory if any value is completed for Medical Scheme Contributions (code 4005)
• This field must not be completed if there is no value for Medical Scheme Contributions (code 4005)

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