SOURCE CODE DESCRIPTIONS IRP5 code 3763

Allowance codes

in the electronic file IRP5 code 3763 is used for: Other allowances (PAYE). All other allowances, which do not comply with any of the descriptions listed under allowances, must be added together, and reflected under this code on the certificate.

Examples include:
· If an employer allows an employee to incur expenditure on meals when obliged to spend a part of a day away from his/her usual place of work/employment by reason of the employee’s employment, and reimburses the employee upon the submission of proof of expenditure, such reimbursement up to an amount announced by notice in the Gazette (R 139 per day for the 2022 YoA), is not taxable and must therefore not be declared on the IRP5/IT3(a). However, where the reimbursement exceeds the lower of the amount announced or the amount for which proof of expenditure was submitted by the employee, the excess is fully taxable and therefore liable to PAYE and must be declared under income code 3713 on the IRP5/IT3(a).
· Any subsistence allowances/advances paid to an employee during any month which is deemed to be remuneration by the end of the next month due to the employee not spending the night away from his/her residence or has not refunded the allowance/advance to the employer.
· Entertainment allowance
· Tool allowance
· Computer allowance
· Telephone allowance
· Cell phone allowance
· Housing allowance
· Taxable Uniform allowance
· Taxable Relocation allowance, etc.

Code 3763 MUST only be used for foreign service income. Not applicable from 2010. With effect from 2010 year of assessment, amounts previously included under codes 3706/3756, 3710/3760, 3711/3761 and 3712/3762 must be included in this code (3713/3763).

The prescribed Length of IRP5 code 3763 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