SOURCE CODE DESCRIPTIONS IRP5 code 3926

Lump sum codes

In the electronic file IRP5 code 3926 is used for: Savings withdrawal benefit (PAYE). Withdrawal from a Retirement Fund from the Savings Component/Pot
· Definitions of “pension fund”, “pension preservation fund”, “provident fund”, “provident preservation fund”, and “retirement annuity fund” in section 1(1) of the Income Tax Act
· paragraph 2(1)(d) of the Second Schedule”
· paragraph 6B of the Second Schedule
· Definition of “savings withdrawal benefit” read with paragraph (eD) of the definition of “gross income” in section 1(1) of the Income Tax Act
· Paragraph 9(3)(a) of the Fourth Schedule to the Income Tax Act.
Applicable from 2025 year of assessment.

The prescribed Length of IRP5 code 3926 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