SOURCE CODE DESCRIPTIONS IRP5 code 3601

Normal Income Codes

IRP5 code 3601 in the electronic file is used for: Income (PAYE). An amount which is paid or payable to an employee for Services rendered, excluding any Long Service Cash Award, required to be declared under code 3622/3672. IRP5 5 code 3651 is specifically for foreign services income.
Examples include:
· Salary/wages
· Backdated salary/wages/pension (Accrued in the current year of assessment)
· Remuneration paid to migrant/seasonal workers/full time scholars or students; etc.

The prescribed Length of IRP5 code 3601 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

SOURCE CODE DESCRIPTIONS IRP5 code 3602

Normal Income Codes

in the electronic file IRP5 code 3602 is used for: Non-Taxable Income (Excl). Any non-taxable income excluding foreign service remuneration for RSA residents that are exempt i.r.o. section 10(1)(o)(ii), non- taxable allowances and fringe benefits. This code accommodates all payments of a capital nature. IRP5 5 code 3652 is specifically for foreign services income.
Examples include:
· Non-taxable pension paid on a regular basis (e.g. war pension, etc.) excluding pension for foreign service income
· Non-taxable income of a capital nature
· Non-taxable portion of an arbitration award, where applicable.
· Non-taxable portion of a compulsory annuity purchased from a retirement fund (e.g. due to non-residency and the relevant DTA).
· Non-taxable (capital element) of a section 10A voluntary purchased annuity.
· Non-taxable amounts paid on a regular basis (excluding lump sums) from a loss of income policy with effect from 1 March 2015 (2016 year of assessment).

The prescribed Length of IRP5 code 3602 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

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

SOURCE CODE DESCRIPTIONS IRP5 code 3604

Normal Income Codes

in the electronic file IRP5 code 3604 is used for: Pension (Excl). Not applicable from 2010 Year of Assessment. Any pension paid on a regular basis that is not taxable, for example war pensions, etc. Code 3654 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3604 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

SOURCE CODE DESCRIPTIONS IRP5 code 3605

Normal Income Codes

in the electronic file IRP5 code 3605 is used for: Annual payment (PAYE). An amount paid or payable to an employee which is defined as an annual payment excluding any Long Service Cash Award required to be declared under code 3622/3672. Code 3655 MUST only be used for foreign service income.
Examples include:
· Annual bonus
· Incentive bonus
· Leave pay (on resignation or encashment of leave credits)
· Merit awards
· Bonus/incentive amount paid to an employee to retain his/her service for a specific period; etc.

The prescribed Length of IRP5 code 3605 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

SOURCE CODE DESCRIPTIONS IRP5 code 3606

Normal Income Codes

in the electronic file IRP5 code 3606 is used for: Commission (PAYE). An amount derived mainly in the form of commission based on sales or turnover attributable to the employee. Code 3656 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3606 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

SOURCE CODE DESCRIPTIONS IRP5 code 3608

Normal Income Codes

in the electronic file IRP5 code 3608 is used for: Arbitration award (PAYE). The taxable portion of a settlement agreement between an employer and an employee as ordered by Court or allocated via a settlement out of Court or in respect of Labour disputes. Code 3658 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3608 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

SOURCE CODE DESCRIPTIONS IRP5 code 3609

Normal Income Codes

in the electronic file IRP5 code 3609 is used for: Arbitration award (Excl). The non-taxable portion of a settlement agreement between an employer and an employee as ordered by Court. Also including all awards allocated via a settlement out of Court or in respect of Labour disputes. Code 3659 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3609 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

SOURCE CODE DESCRIPTIONS IRP5 code 3610

Normal Income Codes

in the electronic file IRP5 code 3610 is used for: Annuity from a RAF (PAYE). An annuity paid on a regular basis by a retirement annuity fund and/or a compulsory purchased annuity purchased from a long- term insurer and paid on a regular basis. Code 3660 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3610 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

SOURCE CODE DESCRIPTIONS IRP5 code 3652

Normal Income Codes

in the electronic file IRP5 code 3652 are used for: Non-Taxable Income (Excl). Any non-taxable income excluding foreign service remuneration for RSA residents that are exempt i.r.o. section 10(1)(o)(ii), non- taxable allowances and fringe benefits. This code accommodates all payments of a capital nature. IRP5 5 code 3652 is specifically for foreign services income.
Examples include:
· Non-taxable pension paid on a regular basis (e.g. war pension, etc.) excluding pension for foreign service income
· Non-taxable income of a capital nature
· Non-taxable portion of an arbitration award, where applicable.
· Non-taxable portion of a compulsory annuity purchased from a retirement fund (e.g. due to non-residency and the relevant DTA).
· Non-taxable (capital element) of a section 10A voluntary purchased annuity.
· Non-taxable amounts paid on a regular basis (excluding lump sums) from a loss of income policy with effect from 1 March 2015 (2016 year of assessment).

The prescribed Length of IRP5 code 3652 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