SOURCE CODE DESCRIPTIONS IRP5 code 3865

Fringe benefit codes

in the electronic file IRP5 code 3865 is used for: Non-taxable Bursaries or scholarships to a non-disabled person – Basic Education (Excl). Non-taxable bursaries and scholarships to a non-disabled person in respect of Basic Education [grade R to 12 and NQF level 1 to 4 , section 10(1)q Exempt portion only. Code 3865 MUST only be used for foreign service income. Valid from 2013 year of assessment.

The prescribed Length of IRP5 code 3865 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