SOURCE CODE DESCRIPTIONS IRP5 code 3924

Lump sum codes

In the electronic file IRP5 code 3924 is used for: Transfer on Retirement (PAYE). Transfer of a Retirement benefit on or after normal retirement age as defined in the rules of the fund but before retirement date [i.e. in terms of Par 2(1)(c) of the Second Schedule to the IT Act]. This is applicable for a transfer from a Pension or Provident Fund to a Retirement Annuity. Applicable from 2019 year of assessment.

The prescribed Length of IRP5 code 3924 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