SOURCE CODE DESCRIPTIONS IRP5 code 3603

Normal Income Codes

in the electronic file IRP5 code 3603 is used for: Pension (PAYE). Any compulsory pension or qualifying purchased annuity paid on a regular basis (from a pension or pension preservation fund)) as well as backdated pension or compulsory purchased annuity payment (from a pension or pension preservation fund) (for current tax year). IRP5 code 3653 is specificaly used for foreign income.

The prescribed Length of IRP5 code 3603 in the electronic file is: N15

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