Guide to Codes Applicable to Employees Tax Certificates 2024

Summary

The purpose of this webpage is to explain the relevant source codes used by the employer when issuing an Employees’ Income Tax certificate to an employee.

This webpage explains each code relevant to remuneration, deductions, Employees’ Tax and employer contributions/payments (fringe benefits).

Validation rules relating to a specific source code are explained as well as the year of assessment in which such code is valid.

The employer demographic information no longer forms part of the certificate as the “Certificate Number” now contains the Pay-As-You-Earn (PAYE) reference number of the employer, which links the employer demographic information to the employee.

For more information visit the SARS website www.sars.gov.za > Types of Tax > PAYE.

Obligations of an Employer Relating to Employee Income Tax Certificates

The 4^th Schedule to the Income Tax Act place, amongst other things, the following obligations on an employer:
- To furnish employees to whom remuneration is paid or has become payable with Employees’ Income Tax certificates (IRP5/IT3(a) certificate) within the prescribed period; and
- To submit all reconciliation documents to SARS within the prescribed period.

Source Codes from 2024 Year of Assessment

These codes are applicable for all tax certificates issued for years of assessment from 2024.
The value of the specific remuneration amount paid to an employee must be reported on an Employees’ Income Tax certificate under the relevant code to which that specific type of remuneration relates.
The codes reflected under the ‘Main Code’ heading are now the only valid codes that may be used. The codes reflected under the ‘Sub-Code Rationalisation’ heading are the codes that may no longer be used. The table below reflects how these codes are absorbed into the remaining codes.