SOURCE CODE DESCRIPTIONS IRP5 code 3622

Normal Income Codes

in the electronic file IRP5 code 3622 is used for: Long Service Cash Award (Excl if IRP5 code 3622 + IRP5 Code 3835 <= R 5000, PAYE if IRP5 code 3622 + IRP5 Code 3835 > R 5000). A Long Service Cash Award given to an employee that complies with the initial 15 years and any subsequent 10 years unbroken period of service requirement – par (vii) of the proviso under par (c) of “gross income” in section 1 of the Income Tax Act.
Note:
· The full value (before excluding any amount) of a Long Service Cash Award that qualify for the R5000 exclusion, must be declared under this code (3622/3672).
· Long Service means an initial unbroken period of service of not less than 15 years and any subsequent unbroken period of service of not less than 10 years [par 5(4) of the Seventh Schedule to the Income Tax Act].
· A Long Service Cash Award, together with the value of the following taxable benefits given as a Long Service Award, will qualify for the reduction of not more than R5000:
o Acquisition of an Asset at less than actual value [par 5(2)(b) of the Seventh Schedule]
o Right of Use of an Asset (other than Residential accommodation and any motor vehicle) [par 6(4)(d) of the Seventh Schedule]
o Free or Cheap Services [par 10(2)(e) of the Seventh Schedule]
· Code 3672 MUST only be used for a Long Service Cash Award while on Foreign Service on date of accrual.
· Valid from 2023 Year of Assessment

The prescribed Length of IRP5 code 3622 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

SOURCE CODE DESCRIPTIONS IRP5 code 3622 – Validation Rules

Normal Income Codes

The Validation Rules for IRP5 code 3622 in the electronic file are:
· Code 3622/3672 is only applicable from 2023 year of assessment
· 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 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)

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 3672

Normal Income Codes

in the electronic file IRP5 code 3672 is used for: Long Service Cash Award (Excl if IRP5 code 3672 + IRP5 Code 3885 <= R 5000, PAYE if IRP5 code 3672 + IRP5 Code 3885 > R 5000). A Long Service Cash Award given to an employee that complies with the initial 15 years and any subsequent 10 years unbroken period of service requirement – par (vii) of the proviso under par (c) of “gross income” in section 1 of the Income Tax Act.
Note:
· The full value (before excluding any amount) of a Long Service Cash Award that qualify for the R5000 exclusion, must be declared under this code (3622/3672).
· Long Service means an initial unbroken period of service of not less than 15 years and any subsequent unbroken period of service of not less than 10 years [par 5(4) of the Seventh Schedule to the Income Tax Act].
· A Long Service Cash Award, together with the value of the following taxable benefits given as a Long Service Award, will qualify for the reduction of not more than R5000:
o Acquisition of an Asset at less than actual value [par 5(2)(b) of the Seventh Schedule]
o Right of Use of an Asset (other than Residential accommodation and any motor vehicle) [par 6(4)(d) of the Seventh Schedule]
o Free or Cheap Services [par 10(2)(e) of the Seventh Schedule]
· Code 3672 MUST only be used for a Long Service Cash Award while on Foreign Service on date of accrual.
· Valid from 2023 Year of Assessment

The prescribed Length of IRP5 code 3672 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

SOURCE CODE DESCRIPTIONS IRP5 code 3672 – Validation Rules

Normal Income Codes

The Validation Rules for IRP5 code 3672 in the electronic file are:
· Code 3622/3672 is only applicable from 2023 year of assessment
· 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 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)

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 3701

Allowance codes

in the electronic file IRP5 code 3701 is used for: Travel allowance (PAYE). An allowance or advance paid to an employee in respect of travelling expenses for business purposes – including fixed travel allowances, petrol, and garage and maintenance cards. Code 3751 MUST only be used for foreign service income. 100% of the value paid to the employee must be specified

The prescribed Length of IRP5 code 3701 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

SOURCE CODE DESCRIPTIONS IRP5 code 3701 – Validation Rules

The Validation Rules for IRP5 code 3701 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 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)

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 3751

Allowance codes

in the electronic file IRP5 code 3751 is used for: Travel allowance (PAYE). An allowance or advance paid to an employee in respect of travelling expenses for business purposes – including fixed travel allowances, petrol, and garage and maintenance cards. Code 3751 MUST only be used for foreign service income. 100% of the value paid to the employee must be specified

The prescribed Length of IRP5 code 3751 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

SOURCE CODE DESCRIPTIONS IRP5 code 3751 – Validation Rules

The Validation Rules for IRP5 code 3751 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 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)

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 3702

Allowance codes

in the electronic file IRP5 code 3702 is used for: Reimbursive travel allowance (IT). This code is only applicable where:
· the reimbursement rate used by the employer EXCEEDS the prescribed rate (par 4 of the Fixing of Rate per Kilometre i.r.o. Motor Vehicles Regulation), and/or
· the employee receives any other form of compensation for travel and only in respect of that portion of the reimbursement that DOES NOT EXCEED the amount determined by multiplying the prescribed rate by the actual business kilometres travelled.
Example:
If the prescribed rate is R3.61/km and the employer reimbursed the employee at R 4.00/km for 12540 business km’s travelled during the 2019 year of assessment, the reimbursive travel allowance must be reflected as follows:
· 3702 R 45 269 [R3.61 x 12540 km’s = R 45 269]
· 3722 R 4 891 [(R4.00 – R3.61) x 12540 km’s = R 4891]
Note:
· Code 3752 MUST only be used for foreign service income.
· The prescribed maximum business kilometres for years of assessment prior to 2018 are 8000 km.
· The prescribed maximum business kilometres for the 2018 year of assessment are 12 000 km.
· No business kilometre limit is applicable from the 2019 year of assessment

The prescribed Length of IRP5 code 3702 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

SOURCE CODE DESCRIPTIONS IRP5 code 3702 – Validation Rules

The Validation Rules for IRP5 code 3702 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 3615/3616 is used and years of assessment is 2003 to 2018
· Cents must be omitted (decimal amount is invalid)

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