LIST OF CODES APPLICABLE TO EMPLOYEES TAX CERTIFICATES

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Document # AS-PAYE-05-A2

Revision # 1

Effective 01.03.2007

The word income used in the list of codes refers to the dictionary explanation of the word and not to the definition in the Income Tax Act, No. 58 of 1962. The following abbreviations are used: PAYE means that the specified income is subject to the deduction of employees tax. IT means that the specified income is not subject to the deduction of employees tax but is taxable on assessment (annual income tax final liability determination). Excl means that the specified income is not subject to the deduction of employees tax and is also not taxable on assessment. Normal income codes
Description Explanation An amount which is paid or payable to an employee for services rendered, for example: Salaries; Wages; Backdated wages / salaries (for current tax year); Remuneration paid to migrant / seasonal worker; Remuneration paid to full time scholars or students; etc. Directors remuneration must be reflected under code 3615. Code 3651 MUST only be used for foreign service income (nature of person = M). Any non-taxable income excluding non-taxable allowances and fringe benefits. For example, this code accommodates all payments of a capital nature. Code 3652 MUST only be used for foreign service income (nature of person = M). Any pension paid on a regular basis as well as backdated pension payments (for current tax year) Code 3653 MUST only be used for foreign service income (nature of person = M) 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 (nature of person = M). An amount which is defined as an annual payment, for example: Annual bonus; Incentive bonus; Leave pay (on resignation / encashment); Merit awards; Bonus / incentive amount paid to an employee to retain his / her service for a specific period; etc. Code 3655 MUST only be used for foreign service income (nature of person = M). 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 (nature of person = M). An amount paid as overtime for rendering services. The tax on such payments is calculated as on income taxable Code 3657 MUST only be used for foreign service income (nature of person = M). The 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 3658 MUST only be used for foreign service income (nature of person = M). 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 (nature of person = M). A monthly annuity paid by a Retirement Annuity Fund to any person. Code 3660 MUST only be used for foreign service income (nature of person = M). The taxable portion of interest received on an annuity purchased from an Annuity Fund. Code 3661 MUST only be used for foreign service income (nature of person = M). The non-taxable portion (capital interest) received on an annuity purchased from an Annuity Fund. Code 3662 MUST only be used for foreign service income (nature of person = M). Restraint of trade income paid to an employee. Code 3663 MUST only be used for foreign service income (nature of person = M). A retirement lump sum payment paid by a fund according to Section 1(eA) of the Act. Code 3664 MUST only be used for foreign service income (nature of person = M). Remuneration paid to a director of a private company / member of a close corporation. Code 3665 MUST only be used for foreign service income (nature of person = M).

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Code

3601 (3651)

Income (PAYE)

3602 (3652) 3603 (3653) 3604 (3654)

Income (Excl) Pension (PAYE) Pension (Excl)

3605 (3655)

Annual payment (PAYE)

3606 (3656) 3607 (3657) 3608 (3658)

Commission (PAYE) Overtime (PAYE) Arbitration award (PAYE)

3609 (3659)

Arbitration award (Excl) Annuity from a retirement annuity fund (PAYE) Purchased annuity (PAYE) Purchased annuity (Excl) Restraint of trade (PAYE) Other retirement lump sums (PAYE) Directors remuneration (PAYE)

3610 (3660) 3611 (3661) 3612 (3662) 3613 (3663) 3614 (3664) 3615 (3665)

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LIST OF CODES APPLICABLE TO EMPLOYEES TAX CERTIFICATES

Code 3616 (3666) Description Independent contractors (PAYE) Labour Brokers (PAYE/IT) Explanation

Document # AS-PAYE-05-A2

Revision # 1

Effective 01.03.2007

Remuneration paid to an independent contractor. Code 3666 MUST only be used for foreign service income (nature of person = M). Remuneration paid to a labour broker - irrespective if the labour broker is in possession of an exemption certificate (IRP 30) or not. PAYE not in possession of an exemption certificate (IRP 30) issue an IRP 5. IT in possession of an exemption certificate (IRP 30) issue an IT 3(a).

3617

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Code

Allowance codes
Description Travel allowance (PAYE) Reimbursive travel allowance (IT) Reimbursive travel allowance (Excl) Subsistence allowance local travel (IT) Subsistence allowance local travel (Excl) Entertainment allowance (PAYE) Share options exercised (PAYE) Public office allowance (PAYE) Uniform allowance (Excl) Tool allowance (PAYE) Computer allowance (PAYE) Telephone/cell phone allowance (PAYE) Other allowances (PAYE) Explanation An allowance or advance paid to an employee in respect of travelling expenses for business purposes including fixed travel allowances, petrol-, garage- and maintenance cards. Code 3751 MUST only be used for foreign service income (nature of person = M). A reimbursement for business kilometres exceeding 8 000 kilometres per tax year or at a rate exceeding the prescribed rate per kilometre or the employee receives any other form of compensation for travel. Code 3752 MUST only be used for foreign service income (nature of person = M). A reimbursement for business kilometres not exceeding 8 000 kilometres per tax year and at a rate which does not exceed the prescribed rate per kilometre. Code 3753 MUST only be used for foreign service income (nature of person = M). An allowance paid for expenses in respect of meals and / or incidental costs for local travel, which exceeds the deemed amounts. Code 3754 MUST only be used for foreign service income (nature of person = M). An allowance paid for expenses in respect of meals and / or incidental costs for local travel, which does not exceeds the deemed amounts. Code 3755 MUST only be used for foreign service income (nature of person = M). This allowance is not valid with effect from 1 March 2002 and may not be reflected on an employees tax certificate. Any amount in terms of a qualifying equity share disposed or gain made under a share scheme operated for the benefit of employees. Code 3757 MUST only be used for foreign service income (nature of person = M). An allowance granted to a holder of a public office to enable him / her to defray expenditure incurred in connection with such office. Code 3758 MUST only be used for foreign service income (nature of person = M). An allowance for a special uniform which is clearly distinguishable from ordinary clothes. Code 3759 MUST only be used for foreign service income (nature of person = M). An allowance for the acquisition of tools for business use. Code 3760 MUST only be used for foreign service income (nature of person = M). An allowance for the acquisition or use of a computer. Code 3761 MUST only be used for foreign service income (nature of person = M). An allowance for expenses incurred in the use of a telephone / cell phone for business purposes. Code 3762 MUST only be used for foreign service income (nature of person = M). All other allowances, which do not comply with the above descriptions, must be added together and reflected under this code on the certificate. Code 3763 MUST only be used for foreign service income (nature of person = M). All other non-taxable allowances, which do not comply with the above descriptions, must be added together and reflected under this code on the certificate. Only allowances that are paid to an employee in his / her capacity as an employee must be shown, for example, relocation allowance. Code 3764 MUST only be used for foreign service income (nature of person = M). An allowance paid for expenses in respect of meals and / or incidental costs for foreign travel, which exceeds the deemed amounts. Code 3765 MUST only be used for foreign service income (nature of person = M) An allowance paid for expenses in respect of meals and / or incidental costs for foreign travel, which does not exceeds the deemed amounts. Code 3766 MUST only be used for foreign service income (nature of person = M) An amount received / accrued from the disposal of any qualifying equity share or any right of interest in a qualifying equity share in terms of certain conditions. Code 3767 MUST only be used for foreign service income (nature of person = M). Any gain in respect of the vesting of any equity instrument. Code 3768 MUST only be used for foreign service income (nature of person = M).

3701 (3751) 3702 (3752) 3703 (3753) 3704 (3754)

3705 (3755) 3706 (3756) 3707 (3757) 3708 (3758) 3709 (3759) 3710 (3760) 3711 (3761) 3712 (3762) 3713 (3763)

3714 (3764)

Other allowances (Excl) Subsistence allowance foreign travel (IT) Subsistence allowance foreign travel (Excl) Broad-based employee share plan (PAYE) Vesting of equity instruments (PAYE)

3715 (3765) 3716 (3766) 3717 (3767) 3718 (3768)

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LIST OF CODES APPLICABLE TO EMPLOYEES TAX CERTIFICATES

y Fringe benefit codes
Description Acquisition of asset (PAYE) Use of motor vehicle (PAYE) Use of asset (PAYE) Meals, etc (PAYE) Accommodation (PAYE) Services (PAYE) Loans or subsidy (PAYE) Employees debt (PAYE) Bursaries or scholarships (PAYE) Medical aid contributions (PAYE) Medical services costs (PAYE)

Document # AS-PAYE-05-A2

Revision # 1

Effective 01.03.2007

Code 3801 (3851) 3802 (3852) 3803 (3853) 3804 (3854) 3805 (3855) 3806 (3856) 3807 (3857) 3808 (3858) 3809 (3859) 3810 (3860) 3813 (3863)

Explanation Acquisition of an asset at less than the actual value and / or insurance policies ceded. Code 3851 MUST only be used for foreign service income (nature of person = M) Right of use of a motor vehicle. Code 3852 MUST only be used for foreign service income (nature of person = M) Right of use of an asset (other than a motor vehicle). Code 3853 MUST only be used for foreign service income (nature of person = M) Meals, refreshments and meal and refreshment vouchers. Code 3854 MUST only be used for foreign service income (nature of person = M) Free or cheap accommodation or holiday accommodation. Code 3855 MUST only be used for foreign service income (nature of person = M) Free or cheap services. Code 3856 MUST only be used for foreign service income (nature of person = M) Low interest or interest free loans and subsidy. Code 3857 MUST only be used for foreign service income (nature of person = M) Payment of an employees debt or release an employee from an obligation to pay a debt. Code 3858 MUST only be used for foreign service income (nature of person = M). Bursaries and scholarships. Code 3859 MUST only be used for foreign service income (nature of person = M). Medical aid contributions paid on behalf of an employee. Code 3860 MUST only be used for foreign service income (nature of person = M). Medical costs incurred on behalf of an employee in respect of medical, dental and similar services, hospital and / or nursing services or medicine. Code 3863 MUST only be used for foreign service income (nature of person = M).

Lump sum codes

Description Gratuities (PAYE) Pension / RAF (PAYE) Pension / RAF (PAYE) Provident (PAYE) Provident (PAYE) Special Remuneration (PAYE) Other lump sums (PAYE) Explanation Gratuities (retirement / retrenchment). Code 3951 MUST only be used for foreign service income (nature of person = M). Pension fund / RAF lump sum (resignation, transfer, surplus apportionment, etc.). Code 3952 MUST only be used for foreign service income (nature of person = M). Pension fund / RAF lump sum (retirement / death). Code 3953 MUST only be used for foreign service income (nature of person = M). Provident fund lump sum (resignation, transfer, surplus apportionment, etc.). Code 3954 MUST only be used for foreign service income (nature of person = M). Provident fund lump sum (retirement / death). Code 3955 MUST only be used for foreign service income (nature of person = M). Special remuneration (e.g. proto-teams). Code 3956 MUST only be used for foreign service income (nature of person = M). Other lump sums (e.g. backdated salaries extended over previous tax years, not approved funds). Code 3957 MUST only be used for foreign service income (nature of person = M).

Code 3901 (3951) 3902 (3952) 3903 (3953) 3904 (3954) 3905 (3955) 3906 (3956) 3907 (3957)

Gross remuneration codes

Description Gross taxable annual payments (annual payments and backdated salary for previous years) Gross non-taxable income (amounts under codes 3602, 3604, 3609, 3612, 3703, 3705, 3709 and 3714) Gross retirement funding employment income Gross non-retirement funding employment income Gross remuneration (amounts under codes 3697 and 3698)

Code 3695 3696 3697 3698 3699

Deduction codes
Description Current pension fund contributions Arrear pension fund contributions Current provident fund contributions Arrear provident fund contributions Medical aid contributions Current retirement annuity fund contributions Arrear (re-instated) retirement annuity fund contributions

Code 4001 4002 4003 4004 4005 4006 4007

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LIST OF CODES APPLICABLE TO EMPLOYEES TAX CERTIFICATES

Code 4018 4024 4025

Document # AS-PAYE-05-A2

Revision # 1

Effective 01.03.2007

Description Premiums paid for loss of income policies Medical services costs deemed to be paid by the employee in respect of himself / herself, spouse or child Medical contribution paid by employee allowed as a deduction for employees' tax purposes

Employees' tax deduction codes

Description SITE (Standard Income Tax on Employees) PAYE (Pay-As-You-Earn) Total employees tax

Code 4101 4102 4103

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Code 4150

Reason code
Value & Description 01 or 1 = Invalid from 1 March 2002 02 or 2 = Earn less than the tax threshold 03 or 3 = Independent contractor 04 or 4 = Non taxable earnings (including nil directives) 05 or 5 = Exempt foreign employment income 06 or 6 = Directors remuneration income determined in the following tax year (only valid from 1 March 2002) 07 or 7 = Labour Broker with valid IRP 30 (only valid from 1 March 2004)

Employer information codes

Description Employers pension fund contributions Employers provident fund contributions Employers medical aid contributions Medical services costs deemed to be paid by the employee in respect of other relatives Capped amount determined in terms of Section 18(2)(c)(i) No value benefits in respect of medical services provided or incurred by the employer

Code 4472 4473 4474 4485 4486 4487

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Revision: 3

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