SOURCE CODE DESCRIPTIONS IRP5 code 3696 – Validation Rules

The Validation Rules for IRP5 code 3696 in the electronic file are:
· A maximum of 20 income codes must be used. If there are more than 20 codes, they must be combined in accordance with the rules defined in section 5 of this document
· At least one income code with a value greater than zero must be completed, except if code 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)
• Mandatory field if values are completed under codes 3602/3652, 3622/3672 (Excl), 3703/3753, 3714/3764, 3815/3865,
3821/3871, 3822/3872, 3830/3880, 3832/3882, 3834/3884,
3835/3885 (Excl), 3908, 3922 (Excl)
• 3922 (Excl) to be added under this code only if the value does not exceed R300,000
• 3622/3672 (Excl) and 3835/3885 (Excl) to be added under this code only if the sum of 3622/3672 and 3835/3885 does not exceed R5,000
• Value must be equal to the sum of all amounts indicated under these afore-mentioned specified codes
• No negative amounts are allowed and will be rejected if specified
• Cents must be omitted (decimal amount is invalid)
• The amounts indicated under this code must be excluded from codes 3697 and 3698 for years of assessment prior to 2017
• 3696 + 3697 + 3698 must be equal to the amount supplied under income for years of assessment prior to 2017
• 3696 + 3699 must be equal to the amounts supplied under income from 2017 year of assessment
• 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