SOURCE CODE DESCRIPTIONS IRP5 code 3768

Allowance codes

in the electronic file IRP5 code 3768 is used for: Vesting of equity instruments or return of capital i.r.o. restricted equity instruments (PAYE). Any gain in respect of the vesting of any equity instrument or the return of capital in respect of restricted equity instruments (section 8C). Code 3768 MUST only be used for foreign service income. A return of capital received by or accrued to an employee in respect of restricted equity instruments on or after 8 January 2016 (during the 2016 year of assessment) is liable to PAYE and should be included under this code. Applicable from 2005 year of assessment

The prescribed Length of IRP5 code 3768 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