SOURCE CODE DESCRIPTIONS IRP5 code 3905

Lump sum codes

In the electronic file IRP5 code 3905 is used for: Provident (PAYE). Lump sum payments accruing prior to 1 October 2007 from a Provident fund in respect of retirement or death. Code 3955 MUST only be used for foreign service income. The value of this code must be included in the value of code 3915 with effect from the 2009 year of assessment. Not applicable from 2009.

The prescribed Length of IRP5 code 3905 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