SOURCE CODE DESCRIPTIONS IRP5 code 3652 – Validation Rules

Normal Income Codes

The Validation rules for IRP5 code 3652 in the electronic file are:
· A maximum of 20 income codes must be used. If there are more than 20 codes, they must be combined in accordance with the rules defined in section 5 of this document
· At least one income code with a value greater than zero must be completed, except if code 3615/3665 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)
· Code 3652 MUST only be used for foreign service income,
o excluding foreign service remuneration for residents who must qualify for exemption i.r.o. section 10(1)(o)(ii) – use code 3651
o including pension/annuities paid from an RSA fund, received from a foreign fund i.r.o. services rendered outside the RSA
· With effect from 2010 year of assessment, amounts previously
included under codes 3604/3654, 3609/3659 and 3612/3662 must be included in this code (3602/3652).

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

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