Filing and Processes > SARS Codes

SARS requires that all items on the IRP5 / IT3(a) certificates are reported under specific codes. Our system generates the following codes based on system and custom items used:

Regular Items

Benefit SARS Code
Accommodation Benefit 3805
Company Car 3802
Company Car Under Operating Lease 3816
Income SARS Code
Basic salary 3601; 3616 if independent contractor
Commission 3606
Loss of Income Policy Payout 3602
Deduction SARS Code
Garnishee No impact on IRP5 / IT3(a)
Income Protection 3801: Amount paid per employer 
Maintenance Order No impact on IRP5 / IT3(a)
Medical Aid 3810, 4474: Employer contribution 

 

4005: Employee contribution

4116: Medical aid tax credits

Pension Fund

4001: Employee contribution

4472: Employer contribution

Provident Fund

3825: Fringe benefit

4003: Provident fund contributions (benefit + employee’s contribution)

4473: Employer’s contribution (not necessarily equal to the fringe benefit) 

Retirement Annuity Fund 3828: Employer’s contribution

 

4006: Total retirement fund contribution

4475: Employer’s contribution

Union Membership Fee No impact on IRP5 / IT3(a)
Voluntary Tax Overdeduction 4102
Allowance SARS Code
Travel Allowance – Fixed travel allowance

3701

4582: Taxable portion

Travel Allowance – Reimbursed for expenses (petrol, garage, maintenance etc.)

3701

4582: Taxable portion

Travel Allowance – Company Petrol Card (not paid out)

3701

4582: Taxable portion

Travel Allowance – Reimbursed per km travelled

3703: If the rate used is under the prescribed rate. 

3702: If the rate used is under the prescribed rate, but the employee also receives a fixed travel allowance.

If the rate used is above the prescribed rate:

  • 3702: Non-taxable portion
  • 3722, 4582: Taxable portion
Gain on Vesting of Equity Instruments 3718
Other SARS Code
Employer Loan 3801: Interest benefit
Foreign Service Exemption Impacts 4102 (PAYE)
Savings No impact on IRP5 / IT3(a)
Tax Directive Impacts 4102 (PAYE)

Once-off Items

Benefit SARS Code
Bursaries and Scholarships – School

3809: Taxable

3815: Exempt

Bursaries and Scholarships – Higher Education

3820: Taxable 

3821: Exempt 

Employee’s Debt Benefit 3808
Medical Costs (Other than Medical Scheme)

3813

 4024: If paid on behalf of themselves, a spouse or child.

Income SARS Code
Annual Bonus 3605
Annual Payment 3605
Arbitration Award (with Tax Directive)

3608: Taxable

3602: Non-taxable

Extra Pay 3601
Leave Paid Out 3605
Once Off Commission 3606
Restraint of Trade 3613
Deduction SARS Code
Donations 4030
Repayment of Advance No impact on IRP5 / IT3(a)
Staff Purchases No impact on IRP5 / IT3(a)
Allowance SARS Code
Broad Based Employee Share Plan 3717
Computer Allowance 3713
Expense Claim No impact on IRP5 / IT3(a)
Phone Allowance 3713
Relocation Allowance

3713: Taxable

3714: Non-Taxable

3801: Taxable Items paid by Employer

Subsistence Allowance International

3715: Exceeding deemed amount

3714: Non-Taxable

Subsistence Allowance Local

3704: Exceeding deemed amount

3714: Non-Taxable

Tool Allowance 3713
Uniform Allowance 3714
Other SARS Code
Termination lump sums
  • All remuneration (except leave paid out): 3907, or 3901 if tax directive is used
  • 3605: Leave paid out
  • 4115: Tax

Custom Items

Type SARS Code
Income (not taxed annually) 3601
Income (taxed annually) 3605
Allowances 3713
Benefits 3801
Reimbursements No impact on IRP5 / IT3(a)
Deductions No impact on IRP5 / IT3(a)
Employer Contribution No impact on IRP5 / IT3(a)

 

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