SOURCE CODE DESCRIPTIONS IRP5 code 4115

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4115 is used for: Tax on retirement lump sum and severance benefits [tax on code 3901,3915, 3920, 3921 3922, 3923 (to 2024 year of assessment), and 3924 (PAYE)].

The prescribed Length of IRP5 code 4115 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 4115 – Validation Rules

The Validation Rules for IRP5 code 4115 in the electronic file are:
• Conditional. Either 4101and/or 4102 and/or 4115 must be completed otherwise 4150 must be completed
• Must only be used if certificate type (code 3015) is IRP5 [invalid if Type of Certificate is IT3(a)]
• Mandatory if values are completed for codes 3901, 3915, 3920, 3921, 3922, 3923 (to 2024 year of assessment), or 3924 and no value for code 4150 is completed
• Value can be zero (0.00)
• If the only value completed is for code 3901 and certificate type (code 3015) is IRP5 and PAYE (code 4102) equal to zero, then code 4115 must be greater than zero
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Only valid from 2008 year of assessment i.r.o. 3915
• Only valid from 2010 year of assessment i.r.o. 3920, or 3921
• Only valid from 2012 year of assessment i.r.o. 3901, or 3922
• Only valid from 2018 to 2024 year of assessment i.r.o. 3923
• Only valid from 2019 year of assessment i.r.o. 3924
• Must not be completed if Type of Certificate is IT3(a), ITREG.

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 4116

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4116 is used for: Medical Scheme Fees Tax Credit considered by employer for PAYE purposes.

The prescribed Length of IRP5 code 4116 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 4116 – Validation Rules

The Validation Rules for IRP5 code 4116 in the electronic file are:
• Must only be used if Type of Certificate (code 3015) is IRP5 or IT3(a)
• Value can be zero (0.00)
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Only valid if Year of Assessment (code 3025) is 2013 or later
• Must only be completed if Nature of Person (3020) is A, B, C, M N, or R
• For years of assessment 2013 and 2014, this field is mandatory if any value is completed for Medical Scheme Contributions (code 4005) and the employee is under 65 years – validate to Date of Birth (code 3080).
• For years of assessment 2013 and 2014, this field must not be
completed if the employee is 65 years and older – validate to Date of Birth (code 3080.
• From 2015 year of assessment, this field is mandatory if any value is completed for Medical Scheme Contributions (code 4005)
• This field must not be completed if there is no value for Medical Scheme Contributions (code 4005)

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 4118

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4118 is used for: The sum of the ETI amounts calculated (theoretical amounts) for the employee during the year of assessment in accordance with section 7 of the ETI Act.

The prescribed Length of IRP5 code 4118 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 4118 – Validation Rules

The Validation Rules for IRP5 code 4118 in the electronic file are:
• Conditional –
o If Certificate has ETI (Code 3026) is populated with a “Y”, then this field is mandatory
o If Certificate has ETI (code 3026) is populated with a “N” or is not completed, then this field must not be completed
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Value must equal the sum of all Monthly Calculated ETI (code 7004) fields for the employee
• Only applicable from 2014 year of assessment
• If Certificate Type is ITREG, then this field must not be completed
Note: Must not be reported on a certificate that will be issued to an employee.

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 4120

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4120 is used for: Additional Medical Expenses Tax Credit if employee ≥65 allowed by Employer for PAYE Purposes. This code is only applicable from the 2017 year of assessment.

The prescribed Length of IRP5 code 4120 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 4120 – Validation Rules

The Validation Rules for IRP5 code 4120 in the electronic file are:
• Must only be used if Type of Certificate (code 3015) is IRP5 or IT3(a)
• Value can be zero (0.00)
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Only valid if Year of Assessment (code 3025) is 2017 or later
• Must only be completed if Nature of Person (3020) is A, B, C, M N, or R
• Mandatory if any value is completed for Medical Scheme Contributions (code 4005) and the employee is 65 years and older – validate to Date of Birth (code 3080)
• This field must not be completed if the employee is under 65 years – validate to Date of Birth (code 3080)
• This field must not be completed if there is no value for Medical Scheme Contributions (code 4005)

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 4141

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4141 is used for: UIF contribution (employer and employee contributions).

The prescribed Length of IRP5 code 4141 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 4142

Employees’ tax deduction, Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 4142 is used for: SDL contribution.

The prescribed Length of IRP5 code 4142 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