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Should source code 3699 reflect on your cost to company?

Tamrin says:
25 February 2022 at 12:29

Does source code 3699 include all employment income, so it should it reflect your cost to company?

TaxTim TaxTim says:
25 February 2022 at 12:42

Source code 3699 reflects income that's taxable only (for example, salary, commission and fringe benefits).

If you receive a non-taxable allowance from your employer, it will not be included in 3699 - non taxable amounts are shown as source code 3696. These are amounts that SARS shouldn't be charging you tax on and no PAYE deducted. Examples of source codes that would be non-taxable include 3602 (non-taxable income), 3604 (Pension), 3609 (Arbitration award), 3612 (Purchased annuity), 3703 (Reimbursive travel<8000km), 3705 (Subsistence allowance), 3709 (Uniform allowance) and 3714 (Other Allowances).

It is important to ensure that the sum of all the amounts under your Income Received column on your IRP5 must match the sum of 3696 and 3699.

Steps to take if the IRP5 from your employer is wrong:

If your employer has given you an incorrect IRP5, where the amounts under 3696 and 3699 don't add up correctly, you need to go back to your employer and request them to correct this. If you don't see either codes 3696 or 3699 on your IRP5- go back to your employer and find out why not. SARS will not accept IRP5s' that don't have either or both of these source codes on them.

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