SOURCE CODE DESCRIPTIONS IRP5 code 3885

Fringe benefit codes

In the electronic file IRP5 code 3885 is used for: Long Service Award (Excl if IRP5 code 3672 + IRP5 code 3885 <= R 5000. PAYE if IRP5 code 3672 + IRP5 code 3885 > R 5000). A Long Service Award given to an employee that complies with the initial 15 years and any subsequent 10 years unbroken periods of service requirement – see relevant legislation listed below. The full value (before excluding any amount) of a Long Service Award consisting of taxable benefits referred to below, that qualify for the R5000 exclusion, must be declared under this code (3835/3885). Long Service means an initial unbroken period of service of not less than 15 years or any subsequent unbroken period of service of not less than 10 years [par 5(4) of the Seventh Schedule]. The Long Service Award consisting of taxable benefits listed below, together with the Long Service Cash Award, will qualify for an exclusion of not more than R5000:
o Acquisition of an Assess 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 3885 MUST only be used for Long Service Awards while on Foreign Service on date of accrual. Valid from 2023 Year of Assessment

The prescribed Length of IRP5 code 3885 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 3885 – Validation Rules

The Validation Rules for IRP5 code 3885 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 3901

Lump sum codes

In the electronic file IRP5 code 3901 is used for: Gratuities / Severance Benefits (PAYE). Gratuities paid/payable by an employer prior to 1 March 2011. Severance benefits, as defined, paid/payable by an employer after 1 March 2011, if employee:
o is 55 years or older
o became permanently incapable to be employed due to ill health, etc.; or
o services terminated due to reduction of personnel or employer ceased trading.
A Lump sum paid/payable in terms of par (d) of “gross income” which is not a ‘severance benefit’, MUST be reflected under code 3907. Code 3951 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3901 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 3901 – Validation Rules

The Validation Rules for IRP5 code 3901 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 3951

Lump sum codes

In the electronic file IRP5 code 3951 is used for: Gratuities / Severance Benefits (PAYE). Gratuities paid/payable by an employer prior to 1 March 2011. Severance benefits, as defined, paid/payable by an employer after 1 March 2011, if employee:
o is 55 years or older
o became permanently incapable to be employed due to ill health, etc.; or
o services terminated due to reduction of personnel or employer ceased trading.
A Lump sum paid/payable in terms of par (d) of “gross income” which is not a ‘severance benefit’, MUST be reflected under code 3907. Code 3951 MUST only be used for foreign service income.

The prescribed Length of IRP5 code 3951 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 3951 – Validation Rules

The Validation Rules for IRP5 code 3951 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 3902

Lump sum codes

In the electronic file IRP5 code 3902 is used for: Pension / RAF (PAYE). Lump sum accruing prior to 1 March 2009 from a Pension/Retirement annuity fund in respect of withdrawal (e.g. resignation, transfer, surplus apportionment, etc.) , including ‘Unclaimed benefits’ only claimed and paid to a member of a Pension fund from 1 March 2009. Code 3952 MUST only be used for foreign service income. he value of this code must be included in the value of code 3920 or 3921 (where applicable) with effect from the 2010 year of assessment – i.e. only if the date of accrual is from 1 March 2009). Not applicable from 2010.

The prescribed Length of IRP5 code 3902 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 3902 – Validation Rules

The Validation Rules for IRP5 code 3902 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 3952

Lump sum codes

In the electronic file IRP5 code 3952 is used for: Pension / RAF (PAYE). Lump sum accruing prior to 1 March 2009 from a Pension/Retirement annuity fund in respect of withdrawal (e.g. resignation, transfer, surplus apportionment, etc.) , including ‘Unclaimed benefits’ only claimed and paid to a member of a Pension fund from 1 March 2009. Code 3952 MUST only be used for foreign service income. The value of this code must be included in the value of code 3920 or 3921 (where applicable) with effect from the 2010 year of assessment – i.e. only if the date of accrual is from 1 March 2009). Not applicable from 2010.

The prescribed Length of IRP5 code 3952 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 3952 – Validation Rules

The Validation Rules for IRP5 code 3952 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