Source Code - Reason for non-deduction of PAYE

List of non-deduction of employees tax on an IRP5/IT3(a) tax certificate.

This two digit code is to identify the reason why there was no employees tax deducted on the income. The two digit codes that might appear on your IRP5 are listed below:
01 Invalid from 1 March 2002
02 Earn less than the tax threshold
03 Independent contractor or Director's fees for RSA resident NED (Applicable from 1 March 2017)
04 Non-taxable earnings including  
  - Nil directives, and
  - Income protection annuities from 1 March 2015
05 Exempt foreign employment income
06 Directors remuneration - Income quantified in the following year of assessment
07 Labour Broker with valid IRP 30 (only valid from 1 March 2004)
08       No Tax to be withheld due to Medical Scheme Fees Tax Credit allowed (Applicable from 1 March 2014) and/or additional Medical Tax Credit is allowed here the employee is 65 years or older (Applicable from 1 March 2016)
09 Par 11A(5) Foruth Schedule notification - No withholding possible (Applicable from 1 March 2013).

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