An IRP5 is an employees’ tax certificate issued by an employer to an employee and submitted to SARS through employer reconciliation. It records employment income, relevant deductions and employees’ tax for the tax period. It is not submitted to employers by SARS.
The information that the form contains includes:
- All information pertaining to that tax year.
- Employer details.
- The name of the company.
- Your PAYE number.
- UIF details.
- The employees’ physical address.
In this article, we will explain what the form is, where to get it, and every other thing you may need to know regarding the IRP5.
IRP5 form explained
An employer issues the IRP5/IT3(a) certificate to the employee. SARS uses the employer-submitted information to prepopulate the employee’s income tax return; the employee should check it against their records.
What this is, is a compilation of all your payslips for the entire tax year. All employees need to have this certificate because they will be able to complete their tax returns during that working year. We hope this explanation clarifies a lot of your doubts and worries with regard to what the form is; if it doesn’t, do not fret; more information will be shared in subsequent sections.
SARS tax return IRP5
Several frameworks have been created under the Pay As You Earn (PAYE) tax system, and all South Africans are required to act in accordance with these structures. The IRP5 is therefore ideal for facilitating the process of recording annual tax returns for each individual, making it as easy and stress-free as possible. The form contains several employee details such as:
- Name details
- Postal address
- Employee details
- Birthdate
- Income tax references
- If you receive your salary through your bank account, your bank details will also be included in the form.
SARS IRP5 online and hardcopy
Employers can get this form whenever they need to fill and submit it. You are allowed to use your company logo on the form but on no condition can you place the SARS logo on your IRP5 form. After filling the form, the employer should provide a copy of the filled form to the employee so that he/she can go through the form and ensure that all the information that has been filled in is correct.
It is the responsibility of the employer to go through the form and make all the necessary corrections before submitting the final copy to the South African Revenue Service. If an employee recognises an error on their IRP5 form, they are not allowed to make the corrections themselves no matter the circumstance; that right is reserved for employers only.
SARS income taxation
SARS has created a system that assigns unique codes to different incomes received by individuals under different categories. Below is a list of codes and their specified meanings:
- Income received
3601: income (this is a general code for all basic salary amounts)
3605: annual payments (this code is used for annual bonuses or once-off payments)
3606: commission payments
3701: travel allowances
3702: Reimbursive travel allowance reported under the applicable SARS rules, including reimbursement at or below the prescribed rate when another travel allowance is paid. Amounts above the prescribed rate are reported under code 3722. The former 12,000 km test applies to 2018 and earlier tax years.
3703: Non-taxable reimbursive travel allowance at no more than the prescribed kilometre rate where no other travel compensation is paid. From 1 March 2018, the former 12,000 km limit no longer applies.
3704: Subsistence allowance for local travel and/or code 3715 for foreign travel where the deemed figures and/or periods are surpassed.
3705: Subsistence allowance for local travel and/or code 3716 for foreign travel where the deemed totals and periods are not exceeded.
3713: Other taxable allowances including cell phone, entertainment, and earnings subject to PAYE)
3810: Fringe benefit – Company contribution to medical aid (figures should agree with code 4474)
Employees should understand that the income received is a Gross Employment Income (code 3699) and is subject to taxation. Additionally, non-taxable income is described under code 3696.
2. SARS deductions
Below is a list of deductions under SARS regulations:
4001: Total pension fund contributions paid or deemed paid by employee (includes both employee and employer contribution)
4003: Total provident fund contributions paid or considered to be paid by employee (consists of both employee and employer contribution)
4005: Medical aid contributions paid and deemed to be paid by the employee (includes both employee and employer contribution towards a private medical aid)
4006: Total retirement annuity fund contributions paid and considered to be paid by the employee
4472: Employer’s pension fund contributions paid for the benefit of the employee
4473: Employer’s provident fund contributions paid for the benefit of the employee
4474: Employer’s medical scheme contributions paid for the benefit of the employee
4582: Value of “remuneration” included in allowances and benefits (travel-related)
4497: Reflects the total deductions and contributions for the period
3. Tax credits and employee contributions
4102: PAYE (Indicates the amount of PAYE that was deducted from the employee and already paid during the period)
4116: Medical scheme fees tax credit (it shows the total amount of the medical scheme fee tax credits already received during the period)
4. Other SARS source codes include:
3802: Use of motor vehicle (not operating lease)
3816: Use of motor vehicle obtained by employers through an operating lease
SARS forms download
As we have already established, the IRP5 form is an essential document for employees to be able to complete their tax returns easily and without stress. With this form, you are guaranteed to include every necessary detail because the form provides it for you. If you do not include this form when submitting your documents to SARS, you may be required to include it before your documents are reviewed.
Obtain your IRP5/IT3(a) from your employer or former employer; do not download a blank form and create your own employment certificate. If the employer cannot supply it, ask SARS what supporting records and steps are required.
Read Also: How Do I Apply for a Job in Statistics SA?
Employer and employee tax obligation
Employers account for monthly PAYE and other relevant liabilities on EMP201 and reconcile the certificates with EMP501. Employees check their certificate information and complete an ITR12 income tax return when required; EMP201 is an employer declaration.
IRP5 and IT3(a) are related employees’ tax certificates but are not interchangeable with every IT3 certificate. In general an IRP5 records employees’ tax deducted, whereas an IT3(a) applies where no employees’ tax was deducted. Ask the employer to correct certificate errors.
If you have any concerns or are in need of any information that has not been provided in this article, don’t hesitate to get in touch with SARS for more information on the subject. You can contact them through any of the contact information made available below.
Contact Details:
Postal: Private Bag X923, Pretoria, 0001
Physical address: Lehae La Sars Building,
299 Bronkhorst Street, Nieuw Muckleneuk, Brooklyn, 0181
Tel: 012 422 4000
Web: www.sars.gov.za
