SOURCE CODE DESCRIPTIONS IRP5 code 3697 – Validation Rules

The Validation Rules for IRP5 code 3697 in the electronic file are:
• Mandatory field if no value is indicated under code 3696 or 3698.
• Where code 3615/3665 is “0” and no other income codes are completed, value must be zero (0)
• No negative amounts are allowed and will be rejected if specified
• Cents must be omitted (decimal amount is invalid)
• 3696 + 3697 + 3698 must be equal to the amounts supplied under income
• If the certificate type is ITREG this field must not be completed
• Must not be completed from 2017 year of assessment

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