SOURCE CODE DESCRIPTIONS IRP5 code 4583

Deduction codes

In the electronic file IRP5 code 4583 is used for: The portion of the following allowances and benefits which represents ‘remuneration’, but limited to:
· The portion (80 or 20%) of the allowance and benefit which is subject to PAYE:
o Travel allowance (3751),
o Value of the Use of motor vehicle acquired by employer NOT via an Operating Lease (3852)
o Value of the Use of motor vehicle acquired by employer via an Operating Lease (3866)
· If Year of Assessment is 2017 or 2018, the portion of the Reimbursive travel allowance (only 3752 and NOT 3753) which is ‘remuneration’
o 80 or 20% of 3752 is ‘remuneration’ where the reimbursement rate paid by the employer exceeds the prescribed rate
o where the reimbursement rate paid by the employer does NOT exceed the prescribed rate, 3752 is NOT ‘remuneration’ and should therefore not be included under code 4583
although employers are not required to withhold PAYE from this reimbursement, that portion which represents ‘remuneration’ (80 or 20%) must be included in code 4583.
Code 3752 Reimbursive travel allowance must be excluded from 4583 as from 2019 Year of Assessment. The value of this code represents the total of the amounts reflected under each of the above codes which are ‘remuneration’ for the purposes of the allowable deduction i.r.o. pension, provident and retirement fund contributions [section 11F of the Income Tax Act]. Applicable from 2017 YoA. Amendments effective from 2019 – exclude 3752.

The prescribed Length of IRP5 code 4583 in the electronic file is: N15

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