# Customer Support Portal

Welcome to the Customer Support Portal, your one-stop destination for resolving inquiries and issues. This page is designed to help you navigate through our support options efficiently, ensuring that you receive the assistance you need as quickly as possible.

## Contact Options

### 1. Live Chat

– **Availability**: 24/7
– **Languages Supported**: English, Spanish, French, German
– **How to Access**: Click the “Live Chat” icon on the bottom right corner of our website.
– **Ideal For**: Immediate assistance, troubleshooting, and quick questions.

### 2. Email Support

– **Email Address**: [email protected]
– **Response Time**: Within 24 hours
– **Ideal For**: Detailed queries, non-urgent issues, and sending attachments.
– **Tips**: Include as much detail as possible about your issue for faster resolution.

### 3. Phone Support

– **Contact Number**: +1-800-123-4567
– **Service Hours**: Monday to Friday, 9 AM – 5 PM (Local Time)
– **Languages Supported**: English
– **Ideal For**: Complex issues requiring a personal touch and follow-up support.

## Self-Help Resources

### Frequently Asked Questions (FAQs)

Explore our [FAQs](#) for answers to common questions and issues. This section is regularly updated to cover a wide range of topics.

### Knowledge Base

Access a comprehensive library of articles, guides, and tutorials. Our [Knowledge Base](#) provides detailed instructions and insights to help you make the most of our products and services.

### Community Forum

Join our [Community Forum](#) to engage with other users and share experiences. This platform allows you to seek advice, share tips, and collaborate.

## Support Ticket System

### How to Submit a Ticket

1. Navigate to the [Submit a Ticket](#) page.
2. Fill in the required fields: name, email, subject, and detailed description of your issue.
3. Select the appropriate category and priority level.
4. Attach any relevant files or screenshots.
5. Submit your ticket and receive a confirmation email with a reference number.

### Tracking Your Ticket

– Log in to your account and go to the [My Tickets](#) section.
– Use your reference number to track the status of your query.
– You can update your ticket with additional information if necessary.

## Feedback and Improvements

We value your feedback. If you have suggestions for improving our support services, please contact us via our [Feedback Form](#). Your input helps us enhance our services.

## Technical Support

### Software Updates

Stay informed about the latest software updates by visiting our [Updates Page](#). Keeping your software up to date ensures optimal performance and security.

### System Requirements

Ensure compatibility by reviewing the [System Requirements](#) for our products. This will help avoid potential issues and improve your user experience.

## Accessibility

We are committed to making our services accessible to everyone. For accessibility support, please reach out via email or consult our [Accessibility Policy](#).

## Privacy and Security

Your privacy is of utmost importance to us. For more information on how we protect your data, please review our [Privacy Policy](#) and [Security Practices](#).

This portal aims to offer comprehensive support, ensuring you have the resources needed to resolve any issues effectively. We are dedicated to providing high-quality customer service and look forward to assisting you.

## PAGSA Forum Overview

### Introduction

The PAGSA Forum is an interactive platform designed exclusively for members of the Payroll Association of South Africa (PAGSA). It facilitates discussions, information exchange, and idea-sharing on topics related to payroll technologies, legislation, best practices, and other payroll-related concerns. This platform allows members to engage in debates, seek opinions, and disseminate their personal insights.

### Key Guidelines

1. **Information Disclaimer**:
– Information shared on the forum reflects the personal views of individual members and is not endorsed by PAGSA. Any decisions made based on this information are the sole responsibility of the member. PAGSA cannot be held liable for any consequences arising from the use of such information.

2. **Responsibility and Ownership**:
– Members are accountable for the content they post. Ownership of the content remains with the original author unless explicit permission for further use is granted.

3. **Monitoring and Regulation**:
– PAGSA does not actively monitor or regulate forum content. Members are encouraged to verify information independently. PAGSA reserves the right to remove content deemed offensive, inaccurate, or false at its discretion.

4. **Third-Party References**:
– Links to third-party sites provided by members do not signify PAGSA’s endorsement. Members should proceed with caution as PAGSA is not liable for the content or any copyright infringements on external sites.

5. **General Usage**:
– The forum is intended for informal member interactions. For official responses from PAGSA, members should utilize the Support/Ticket Management System.

### Conclusion

This forum serves as a collaborative space for PAGSA members to discuss pivotal payroll issues. Although the PAGSA executive occasionally reviews forum interactions, official positions and responses require formal communication through established support channels. Members are encouraged to engage constructively while adhering to the guidelines outlined above.

# Sample Document in Wiki Style

## Introduction

This document serves as a reference guide developed from a structured block of text. It is designed to encapsulate all factual information in an easy-to-access format.

## Key Features

– **Content Structure:** The content is organized into clearly defined sections and subsections, making navigation straightforward.
– **Fact-Driven Information:** Emphasis is placed on factual accuracy and detailed descriptions of each component.

## Section 1: Placeholder Text

### Description

– The placeholder text

suggests a potential structure for web development or content management systems. This code indicates the inclusion of a vertical column, row, and a specified empty space.

### Purpose

– **Web Design:** Often used in the context of laying out web pages with responsiveness.
– **Content Management:** Utilized in platforms such as WordPress for seamless editing and design.

### Usage

– **Syntax:**

and are commands for defining layout blocks.
– **Customization:** Attributes like “height” can be modified to alter visual spacing.

## Section 2: Code Interpretation

### Elements

– **Row and Column:**
– `

`: Defines a row in the layout, essential for organizing content in web design.
– ` `: Establishes a column, allowing for vertical content alignment.

### Empty Space

– **Functionality**: The tag `

` adds space between elements, contributing to the visual aesthetics of a web layout.

## Section 3: Application

### Web Development

– **Responsive Design:** Ensures that web content adapts to different screen sizes.
– **User Experience:** Enhances readability and navigation by adjusting space.

### Content Management Platforms

– **Integration:** Compatible with systems like WordPress for intuitive page layout.
– **Dynamic Changes:** Facilitates easy modification of content structure by non-developers.

## Conclusion

Understanding the use of structured codes such as

, , and is crucial in web development and content management. These elements optimize design and enhance user experience by providing a clear, responsive structure within different web platforms.

COMMENTS INVITED: NATIONAL MINIMUM WAGE RATE / HOUR PROPOSALS

The National Minimum Wage Commission, established by the National Minimum Wage Act, annually reviews how the national minimum wage rates affect seven economic areas, of which employment (or unemployment) is arguably the most important.

Following the annual investigation, the NMW Commission prepares a report that includes a recommendation to either increase, leave unchanged, or reduce, the minimum wage rates for the following year, and submits it to Government for a final decision.

The final adjusted national minimum wage rates are usually issued in late January or early February and at the request of the PAGSA at the inception of this process, are made effective from 1st March for the tax year that follows.

The Commission has requested our written feedback on the effectiveness and impact of the national minimum wage, considering the following medium-term target:
“All wage-earning workers must ,earn enough to maintain a decent standard of livfng, defined as sufficient to support themselves and their families at a level that is both socially acceptable and economically viable. The target should ensure that the value of the national minimum wage does not decline relative to the median wage.”

If you want to add your opinion to this annual process, please email your comments to [email protected] by no later than 11 September 2025.

More information can be found in Government Gazette Number 53187 dated 19 August 2025.

SARS NOTICE: BIOMETRIC VERIFICATION ON EFILING REGISTRATION PRODUCTS

SARS has issued a notice with regards to the implementation of Phase 2 of Biometric Verification on eFiling.

This notice explain that VAT and/or PAYE registration on eFiling will now require the Biometric Verification by promptingthe user to take a re-time photo.

The SARS notice is attached below for ease of reference.

Dear Valued Stakeholder

SARS ROLLS OUT PHASE 2 BIOMETRIC VERIFICATION

SARS has implemented Phase 2 of Biometric Verification, marking another important milestone in our digital-security journey.

Building on the successful rollout of facial recognition for new eFiling registrations in 2024, this phase extends biometric authentication to VAT and PAYE registrations on eFiling.

Individuals and registered representatives submitting VAT and/or PAYE registrations via eFiling are now prompted to take a real-time photo using a camera-enabled device. The image is matched against reference photos from SARS or the Department of Home Affairs. If the match is successful, the registration continues; if not, a verification case is triggered ,and the user may be required to submit supporting documents or visit a SARS service centre. Tax practitioners submitting VAT and PAYE registrations on behalf of clients must have their client authorise the request biometrically on the SARS website. Instructions on how to do the authorisation will be provided via email along with a unique identifier code.

Taxpayers who are unable to receive a One-Time Pin (OTP) can now update their contact details from the eFiling login page after they have successfully done their biometric authentication. Once verified, they can select their preferred contact method ( cell phone or email), ensuring they regain access to their profiles and can continue using eFiling.

Together, these enhancements strengthen protection against fraud, reduce the risk of identity theft, and deliver a safer, more reliable digital experience for taxpayers.

Sincerely,

ISSUED ON BEHALF OF THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE
SERVICE
22 AUGUST 2025

DRAFT TAX ADMINISTRATION BILLS ISSUED

The draft Tax Amendment Bills were issued late this year on 16 August 2025 (they are normally issued in the last week of July), and they contain only one change that impacts on payroll systems.

The following Bills contain the tax proposals that were made in the Budget Reviews presented on 12 March 2025 and 21 May 2025.
The ‘Rates Bill’ was issued on 30 April 2025:
1.
Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill
This Act confirms the tax tables, rebates and threshold changes proposed in the 2024 Budget.
The following Tax Amendment Bills were issued on 16 August 2025:
•
Taxation Laws Amendment Bill
This Bill includes the substantive changes to the Income Tax Act proposed in the 2025 budget.
•
Tax Administration Laws Amendment Bill
This Bill includes the administration-related changes proposed in the 2025 budgets to the various Acts that are administered by SARS.
Remuneration Proxy
The only change for payrolls is to the definition of “Remuneration Proxy” that was inserted in section (1) of the Income Tax Act from 1 March 2014.
The term “remuneration proxy” is used in a variety of provisions where prior year remuneration is used as a proxy for the current year’s remuneration.
Commonly occurring payroll administration areas that make use of ‘remuneration proxy’ include:
•
The formula used to calculate the Residential Accommodation fringe benefit, and
•
In the case of a bursary granted for the studies of the relative of an employee, to check that the employee’s remuneration proxy is less than R600,000 pa before applying the exemption to the bursary fringe benefit.
The sections of the Income Tax Act that make use of the remuneration proxy are listed below:
•
Section 10(1)(q)(ii)(aa) of the Act for any bona fide scholarship or bursary granted by the employer to enable or assist any person to study;
•
Section 10(1)(qA)(ii)(aa) of the Act for any bona fide scholarship or bursary to enable any person living with a disability to study;
•
Paragraph 5(3A)(a) of the Seventh Schedule to the Act, which caters for the no-value provision regarding the cash equivalent for employer-provided accommodation (low-cost housing); and
•
Paragraph 9(3)(i) of the Seventh Schedule to the Act dealing with the rental value to be placed on employer-provided residential accommodation.
Reasons for change
Employees who qualified for a foreign employment income exemption under section 10(1)(o)(ii) of the Act in the previous year of assessment will have a reduced remuneration proxy in the current year of assessment, thereby creating “unintended tax advantages”.
Proposal
The draft amendment proposes that the definition of “remuneration proxy” is amended to include income that was exempt under section 10(1)(o)(ii) of the Act, effective from 1 March 2026.

VAT Modernisation project
The Tax Administration Laws Amendment Bill includes draft changes to facilitate the VAT Modernisation project.
While the changes necessary for this project don’t impact directly on payrolls, they do so indirectly because this project
has been introduced before the monthly tax certificate project.
The VAT Modernisation project forms part of a broader effort to transform tax processes, improve customer service
and engagement, reduce the VAT gap and streamline tax administration for VAT traders, businesses, and SARS.

SARS NOTICE: E@SYFILE BETA TESTING NOTIFICATION

SARS has issued a notice with regards to the planned BETA testing which will commence on 18 August 2025 and end on 5 September 2025.

Please book this testing period in your diary.

All online functionality has been disabled in order to prevent inadvertent submission of test data into SARS production environment, therefore, certain menu options have been disabled and the test application will default to offline mode
as a fail-safe.

LINK: SARS will provide the link on the 18 August 2025. Please send me an email ([email protected]) should you wish to participate in this testing to ensure that I provide you with the link and the login details.

The BRS: The PAYE BRS for the Employer Interim Reconciliation submission period 202308 is available on the SARS website: SARS_PAYE_BRS – PAYE Employer Reconciliation V24.0.2

Error reporting: Due to the fact that SARS is expecting a consolidated testing report, all testers must Email the following details of the error to [email protected]
1. Make your description of the problem as short as possible, but good enough for SARS to understand the problem.
2. Add screen prints where necessary of the error to the email.
3. Add the CSV file where the error relates to the information supplied in a CSV file.
The SARS notice can be access via the following link: https://www.sars.gov.za/businesses-and-employers/my-businessand-tax/easyfile/

UNBUNDLING OF THE UI FUND AND THE COMPENSATION FUND

This is one of the more pleasurable PAGSA Newsflashes that I have written in a long time.

Introduction:

In December 2024, BUSA and Cosatu called for the UI Fund and the Compensation Fund to be put under administration, the details of which can be found in PAGSA Newsflash 2024-37.

This was followed by the Annual Report of the Department of Employment and Labour Annual for the 2023/24 financial year that was issued early in 2025. On browsing through this lengthy document, the following caught my eye.

In collaboration with the UIF, as the Department’s delivery agency, the 2023/2024 FY year saw work in progress with PricewaterhouseCoopers (PwC) Inc. on the unbundling of the Compensation Fund (CF) and Unemployment Insurance Fund (UIF). This initiative is aimed to repositioning both agencies to enhance service delivery to citizens and optimize their business processes for faster responses. It is anticipated that the project will end in 2024/25 financial year.

And further on in the Annual report:
In the 2023/24 FY, the UIF and CF unbundling process aimed at optimising these entities and enhancing their business strategies to ensure they remain citizen-centred commenced. The UIF focused on modernizing its delivery methods and
transforming its business strategy to expand its service delivery.
It is anticipated that the project will end in 2024/25 financial year.

And still further on:
The Reconfiguration of the Department project aims for the unbundling of the UIF and CF from the Department and allow them to operate as full schedule-3 Entities as stated in the PFMA. The project will also reconfigure the Department to enable a focused response to the employment mandate.
It is anticipated that the project will end in 2024/25 financial year.

What Does This Mean?
While it seems that the process is behind schedule, on the face of the above extracts, this is very good news.
• “This initiative is aimed to repositioning both agencies to enhance service delivery to citizens and optimize their business processes for faster responses.”
• “… aimed at optimising these entities and enhancing their business strategies to ensure they remain citizencentred commenced. The UIF focused on modernizing its delivery methods and transforming its business strategy to expand its service delivery”

Another extract states that:
“The Reconfiguration of the Department project aims for the unbundling of the UIF and CF from the Department and allow them to operate as full schedule-3 Entities as stated in the PFMA.
My knowledge of these ‘unbundling’ projects is limited, so I turned to SARS to get an understanding of what is meant by operating as a “full schedule-3 Entities as stated in the PFMA”

More specifically, my question was:
Is this proposed “unbundling” project from the Department that will allow them to “operate as full schedule-3 Entities as stated in the PFMA“, the same process that SARS went through many years ago to achieve ‘semi-independence’?

The short answer to this question is that at this early stage, “it seems similar to what SARS went through, but the only difference being that SARS was enabled by way of the SARS Act, whereas for this one, it seems that existing legislation will be amended for such enablement and creation.”.

The preamble of the South African Revenue Service Act, 34 of 1997, states the intention:
• to make provision for the efficient and effective administration of the revenue collecting system of the Republic; and,
• for this purpose, to reorganise the South African Revenue Service and to establish an Advisory Board; and
• to provide for incidental matters.

The SARS Act came into effect on 1 October 1997 (Government Gazette No. 18338), and we have all seen and experienced what has happened since then in terms of increasingly efficient performance, the improved collection of tax revenue, and the overall benefit to South Africa.

Summary of the Process:
The following information was provided by SARS and because it makes interesting and positive reading, is included here.
The South African government is actively unbundling the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) from the Department of Employment and Labour (DEL), aiming to make them independent entities [my emphasis].
This move is part of a broader strategy to stabilize, modernize, and repurpose these funds, which have long been plagued by inefficiencies, poor service delivery, and audit failures.

Key Reasons for Unbundling
1. Operational Inefficiencies: Both funds have faced persistent issues such as irregular expenditure, poor internal controls, and outdated IT systems
2. Audit Failures: Over a decade of failed audits prompted calls for stronger forensic and governance capacity
3. Service Delivery Challenges: Clients often experience poor service, with frequent system outages and untrained staff
4. Structural Reform: The unbundling is based on a diagnostic report and recommendations from PwC, which called for:
• Upgraded IT infrastructure
• Organizational restructuring
• Skilled staffing and retraining
• A shift in work culture

Implementation Plans:
• Three Standalone Entities: The DEL is creating separate entities for the UIF and CF to improve responsiveness and accountability
• Change Management: A major focus is on training staff, improving tools and infrastructure (e.g., computers, printers, alternative energy), and enhancing client interaction at labour centres.
• Business Continuity Programme: Launched in February 2024 to ensure uninterrupted service during the transition

Political and Public Oversight:
• Parliament and its committees have welcomed the restructuring, describing it as a necessary step after previous turnaround strategies failed
• Concerns remain about the cost, timelines, and impact on staff, but the DEL has committed to transparency and ongoing engagement with stakeholders

The unbundling of South Africa’s Unemployment Insurance Fund (UIF) and Compensation Fund (CF) is expected to have several direct and indirect effects on workers, both positive and potentially disruptive during the transition. [my emphasis]

Positive Impacts for Workers:
1. Improved Service Delivery
The restructuring aims to fix long-standing issues like delayed claims, poor communication, and system outages. Workers should eventually experience faster, more reliable access to benefits
2. Greater Accountability
By making the UIF and CF independent entities, the government hopes to reduce corruption and mismanagement. This could mean more funds actually reach the intended beneficiaries
3. Modernized Systems
Upgraded IT infrastructure and retrained staff are part of the plan. This should reduce errors and improve the efficiency of processing claims
4. Better Oversight and Governance
The move includes strengthening internal controls and forensic capacity, which could prevent fraud and ensure that workers’ contributions are protected

Potential Risks and Challenges
1. Disruption During Transition
As the funds are restructured, there may be temporary delays or confusion in processing claims. Workers might face short-term inconvenience
2. Uncertainty About Staffing and Roles
The restructuring could lead to job changes or losses within the department, which might affect service quality if not managed carefully
3. Trust Deficit
Given the history of mismanagement, workers may remain sceptical about whether the reforms will truly benefit them
4. Delayed Benefits
If the transition is not smooth, injured or unemployed workers could face delays in receiving financial support, which could be critical for their livelihoods

Legislation Changes
To enable the unbundling of the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) in South Africa, several legislative and regulatory changes are either underway or being proposed. These changes aim to give both funds independent legal and operational status, separate from the Department of Employment and Labour (DEL).

Key Legislative and Policy Changes
1. Reconfiguration of Legal Status
• The DEL is working to grant independent status to the UIF and CF, which will require amendments to existing legislation governing these funds
• This includes revising the Unemployment Insurance Act and the Compensation for Occupational Injuries and Diseases Act (COIDA) to reflect their new autonomy
2. New Governance Structures
• The proposed changes include the creation of new governance frameworks, such as boards and executive roles (e.g., Chief Investment Officer, Chief Digital Officer), which are not currently provided for in the existing legislation
3. Regulatory Oversight
• The DEL is expected to introduce new regulations to define the operational boundaries, reporting requirements, and accountability mechanisms for the independent entities
4. National Labour Migration Policy
• Although not directly tied to the unbundling, the DEL is also preparing to submit the National Labour Migration Policy to Parliament, which includes legislative proposals to cap the hiring of foreign nationals in certain sectors
This reflects a broader restructuring of labour policy in South Africa.
5. Diagnostic and Implementation Reports
• The legislative changes are informed by a PwC diagnostic report and a conceptual model presented to Parliament, which outline the legal, financial, and operational restructuring needed
6. Gazetted Changes
• Some decisions, such as the acquisition of Rand Mutual Holdings as an insurance license holder for the Compensation Fund, have already been gazetted, indicating that regulatory groundwork is being laid

What to Expect Next
1. Parliamentary Review: Draft legislation and amendments will be tabled in Parliament for debate and approval.
2. Public Consultation: Regulations and policy changes may be opened for public comment before finalization.
3. Phased Implementation: Legal changes will be rolled out in phases to align with operational restructuring.

Legislation Amendments Required
To legally enable the unbundling of the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) in South Africa, several legislative amendments and regulatory reforms are being proposed or are already underway.

Here’s a breakdown of the key changes:
1. Unemployment Insurance Act
• Amendments will be needed to redefine the UIF as a standalone legal entity, separate from the Department of Employment and Labour (DEL).
• This includes provisions for:
• Independent governance structures (e.g., board of directors)
• Financial autonomy
• New executive roles like Chief Investment Officer and Chief Digital Officer
2. Compensation for Occupational Injuries and Diseases Act (COIDA)
• The COIDA Amendment Act 10 of 2022 already introduced changes to modernize the Compensation Fund
• Further amendments are expected to:
• Establish the CF as an independent entity
• Strengthen internal controls and forensic capacity
• Improve claims processing and data verification systems
3. Supporting Regulations
• New regulations will define:
• Operational boundaries and mandates of the UIF and CF
• Reporting and accountability mechanisms
• Compliance and enforcement procedures for employers

Policy and Structural Reforms
• The PwC diagnostic report recommended a full reconfiguration of both funds, including digitization, governance upgrades, and staffing changes
• The DEL commits to implementing these recommendations via a multi-year change management programme

📌Summary of Key Legal Shifts
The PwC diagnostic report that informed the unbundling of South Africa’s Unemployment Insurance Fund (UIF) and Compensation Fund (CF) has been referenced in multiple government and parliamentary discussions.
However, the full report itself has not been made publicly available online through official channels like PwC South Africa or the Department of Employment and Labour.

What We Know About the Report
• The report was commissioned to assess governance, operational, and financial weaknesses in the UIF and CF.
• It recommended:
• Independent legal status for both funds
• Upgraded IT systems
• New governance structures including boards and executive roles
• Improved forensic and audit capacity
• Change management and staff retraining
• These recommendations are being used to guide the current restructuring process

In Closing
There is no doubt that this is a big step in the right direction. The unbundling process as summarised above directly addresses what South African employers and employees have wanted for many years, and we can only hope that the implementation lives up to the expectations created.
There is also no doubt that it will take several years during which the boards, structures, appointments of quality personnel, procedures and policies, IT infrastructure, etc. are put into place.
But maybe, just maybe, … there is some light at the end of the tunnel, even if the tunnel is a long one.

SOURCE CODE DESCRIPTIONS IRP5 code 45898 – Validation Rules

The Validation Rules for IRP5 code 4589 in the electronic file are:
• Conditional. All deductions and contributions that have a value must be reported, and those that do not have a value must not be reported
• A maximum of 12 deduction codes must be used. If there are more than 12 codes to be output, they must be combined in accordance with the rules defined
• If the certificate type is ITREG this field must not be completed.
• Cents must be omitted (decimal amount is invalid)
• No negative amounts are allowed
• Code 4587 is only valid from 2021 year of assessment
• If no foreign service income codes are completed, then code 4587 MUST NOT be completed
• If any of the foreign service income codes allowable for the s10(1)(o)(ii) exemption (listed under 4587 in par 6.6) is completed, then code 4587 MUST be completed
• The value of code 4587 may be zero
• The value of source code 4587 cannot exceed the lower of R1.25 mil or the total of the values declared under the s10(1)(o)(ii) allowable foreign service income codes

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

SOURCE CODE DESCRIPTIONS IRP5 code 4589

Deduction codes

In the electronic file IRP5 code 4589 is used for: The total amount repaid by the employee in the tax year for a s11(nB) recoupment, i.e. restraint of trade. This amount will NOT be used by the ITR12 assessment process, and the employee must still declare the repayment in source code 4058 on the ITR12 return.

Code 4589 is Applicable from 2026 year of assessment

The prescribed Length of IRP5 code 4589 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