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News & Press: SARS News & Tax Administration

New and re-activated source codes

25 October 2012   (0 Comments)
Posted by: SAIT Technical
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By SARS Legal & Policy

A number of changes to source codes are being introduced:

• The IRP5/IT3(a) has been updated due to the introduction of the Medical Scheme Fees Tax Credit and code 4116 Medical Scheme Fees Tax Credit taken into account by employer for PAYE purposes, has been included under the "Tax Credits and/or Employer's/Employee Contributions" section on the IRP5/IT3(a) certificate.

• The following new source codes have been included:

CATEGORY

CODE

DESCRIPTION

FRINGE BENEFIT CODE

3815 (3865)

Non-taxable bursaries and scholarships to employees and their dependents – Section 10(1)q – Exempt portion only.

LUMP SUM CODE

3922

Compensation in respect of death during employment (Excl/PAYE). Compensation lump sum payments in terms of Section 10(1)(gB)(iii) in respect of the death of

The following previously de-activated source codes have now been re-activated. These source codes are valid from:

  • 1999 – 2009 year of assessment and from the 2013 year of assessment
  • 2002 – 2009 year of assessment and from the 2013 year of assessment for the Foreign Service Income [the source codes denoted in (brackets)].

CATEGORY

CODE

DESCRIPTION

NORMAL INCOME CODES

3603 (3653)

Pension (PAYE)

3610 (3660)

Annuity from a Retirement Annuity Fund (PAYE)

FRINGE BENEFIT CODES

3805 (3855)

Accommodation (PAYE)

3806 (3856)

Services (PAYE)

3808 (3858)

Employee's debt (PAYE)

3809 (3859)

Taxable bursaries or scholarships (PAYE)

For the Interim Reconciliation, income source code 3922 Compensation in respect of death in the course of Employment must be declared as follows: Only the excess amount above the R 300,000 exemption, paid by the employer, must be declared under income source code 3901. Note that e@syFile™ will not accept code 3922 for the interim reconciliation ending August 2012. In addition, the source code 4005 cannot be equal to zero. Where this is the case employers must ensure that the value for source code 4005 is equal to 1. This only applies to the Interim Reconciliation for the period ending August 2012.

The above two rules are only applicable to the 2013 PAYE Interim Submission and the rules included in the Business Requirement Specification PAYE Employer Reconciliation version 10.1 must be applied to the final IRP5/IT3(a) certificate for the full reconciliation period (1 March 2012 to 28 February 2013). To read more, see under the heading Guidelines for Employer Reconciliation the BRS called ‘Business Requirement Specification PAYE Employer Reconciliation version 10.1' on the PAYE page Source code 3922 and the 4005 validation rule in terms of which the value of 4005 can be zero will therefore be applicable to the final certificates to be submitted for the final reconciliation period February 2013. .


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