SOURCE CODE DESCRIPTIONS IRP5 code 4102 – Validation Rules

The Validation Rules for IRP5 code 4102 in the electronic file are:
• Conditional. Either 4101 and/or 4102 and/or 4115 must be completed otherwise 4150 must be completed
• Must only be used if certificate type (3015) is IRP5 [invalid if Type of Certificate is IT3(a)]
• Decimal digits are mandatory even if the decimal value is zero
• If YoA (source code 3025) is greater or equal to 2021 and Voluntary Over-deduction Indicator (code 3195) is “Y” then PAYE (source code 4102) must be less or equal to the sum of Non-taxable income (source code 3696) and Gross Employment Income (taxable) [source code 3699]
• If YoA (source code 3025) is greater or equal to 2021 and Voluntary Over-deduction Indicator (code 3195) is “N” then PAYE (source code 4102) must be less or equal to Gross Employment Income (taxable) [source code 3699]
• Must be decimal point (comma invalid)
• Must not be completed if Type of Certificate is IT3(a), ITREG.

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