SARS Tax Codes for Payroll Items
SARS requires that each payroll item on the IRP5/IT3(a) be reported under a specific tax code, which our system generates automatically. This page lists the code(s) applicable to each item.
Before you start
Three types of SARS codes appear on IRP5/IT3(a) certificates:
- Payroll item codes link each payroll item to a specific code on your IRP5/IT3(a).
- Total codes combine similar payroll items and report them as one amount, with separate totals for taxable (3699) and non-taxable (3696) items.
- Statutory codes are automatically generated based on the employee’s taxable income. These codes include PAYE (4102), UIF (4141), SDL (4142), and the combined total (4149).
Finding codes on this page
To search for a specific code or keyword, press Ctrl + F (or Command + F on a Mac).
Also see the FAQ section below for answers to common queries.
System Items with a Single Code¶
Income¶
| Payroll Item | SARS Code | IRP5/IT3(a) Description |
|---|---|---|
| Basic Salary / Extra Pay | 3601 | Income (Taxable) |
| Commission / Once-Off Commission | 3606 | Commission |
| Arbitration Award | 3608 | Arbitration award (Taxable) |
| Annual Bonus | 3605 | Annual payment |
| Leave Paid Out | 3605 | Annual payment |
| Restraint of Trade | 3613 | Restraint of trade |
| Dividends Subject to Income Tax | 3719 | Dividends not exempt i.t.o. par (dd) of the proviso to s10(1)(k)(i) |
| Dividends Subject to Income Tax | 3720 | Dividends not exempt i.t.o. par (ii) of the proviso to s10(1)(k)(i) |
| Dividends Subject to Income Tax | 3721 | Dividends not exempt i.t.o. par (jj) of the proviso to s10(1)(k)(i) |
Benefits¶
| Payroll Item | SARS Code | IRP5/IT3(a) Description |
|---|---|---|
| Accommodation Benefit | 3805 | Accommodation |
| Employee's Debt Benefit | 3808 | Employee's debt |
Allowances¶
| Payroll Item | SARS Code | IRP5/IT3(a) Description |
|---|---|---|
| Computer Allowance | 3713 | Other allowances (Taxable) |
| Phone Allowance | 3713 | Other allowances (Taxable) |
| Tool Allowance | 3713 | Other allowances (Taxable) |
| Uniform Allowance | 3714 | Other allowances (Non-Taxable) |
| Gain on Vesting of Equity Instruments | 3718 | Vesting of equity instruments |
Deductions¶
| Payroll Item | SARS Code | IRP5/IT3(a) Description |
|---|---|---|
| Donations | 4030 | Donations deducted from the employee's remuneration and paid by the employer to the Organisation. |
Other¶
| Payroll Item | SARS Codes | IRP5/IT3(a) Description |
|---|---|---|
| Tax Directive (Regular Inputs) | 3707/3908 | 3707: Share Options 3908: Exempt policy proceeds |
| Leave paid out (Payslip) | 3605 | Annual payment |
| Termination Lump Sums (Payslip Inputs) | 3901/3907 | 3901: Gratuities 3907: Other lump sums |
System Items with Multiple Codes¶
Medical aid¶
Scenario 1: Only the employer contributes and pays for the medical aid¶
No payout to employee
Nothing is paid out to the employee. Only a medical aid tax credit is processed, and the employee is taxed on the amount of the employer's contribution.
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3810 | Medical aid |
| 4005 | Medical aid contributions |
| 4474 | Employer's medical aid contributions in respect of employees |
| 4116 | Medical Aid Tax Credits |
Scenario 2: Employee wants tax credits applied through payroll for their private medical aid¶
No payout to employee
Nothing is paid out to the employee. Only a medical aid tax credit is processed.
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 4005 | Medical aid contributions |
| 4116 | Medical Aid Tax Credits |
Scenario 3: Both employer and employee contribute, employer handles payment¶
No payout to employee
Nothing is paid out to the employee. Only a medical aid tax credit is processed, and they are taxed on the benefit value of the employer’s contribution.
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3810 | Medical aid |
| 4005 | Medical aid contributions |
| 4474 | Employer's medical aid contributions in respect of employees |
| 4116 | Medical Aid Tax Credits |
Scenario 4: Both employer and employee contribute, employee handles payment¶
Employer contribution paid as allowance and taxed as benefit
The employer’s contribution is paid out to the employee as an allowance. The employee is taxed on the benefit value of the employer’s contribution.
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3810 | Medical aid |
| 4005 | Medical aid contributions |
| 4474 | Employer's medical aid contributions in respect of employees |
| 4116 | Medical Aid Tax Credits (You can tick the Don’t apply tax credits box, if applicable. This will reduce the tax credits to R 0.00 on the IRP5/IT3(a).) |
Retirement Funds¶
Pension fund¶
Scenario 1: Only the employer contributes and pays for the employee’s pension fund¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3817 | Employer pension fund contributions |
| 4001 | Total pension fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4472 | Employer's pension fund contributions |
Scenario 2: Both employer and employee contribute, employer handles payment¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3817 | Employer pension fund contributions |
| 4001 | Total pension fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4472 | Employer's pension fund contributions |
Provident fund¶
Scenario 1: Only the employer contributes and pays for the employee’s Provident Fund¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3825 | Employer provident fund contributions |
| 4003 | Total provident fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4473 | Employer's provident fund contributions |
Scenario 2: Both employer and employee contribute, employer handles payment¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3825 | Employer provident fund contributions |
| 4003 | Total provident fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4473 | Employer's provident fund contributions |
Retirement annuity fund¶
Scenario 1: Only the employer contributes and pays for the Retirement Annuity Fund¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3828 | Employer retirement annuity fund contributions |
| 4006 | Total retirement annuity fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4475 | Employer's retirement annuity fund contributions |
Scenario 2: Both employer and employee contribute, employer handles payment¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3828 | Employer retirement annuity fund contributions |
| 4006 | Total retirement annuity fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4475 | Employer's retirement annuity fund contributions |
Scenario 3: Both employer and employee contribute, employee handles payment¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 3828 | Employer retirement annuity fund contributions |
| 4006 | Total retirement annuity fund contributions paid and 'deemed paid' by employee (if applicable) |
| 4475 | Employer's retirement annuity fund contributions |
Scenario 4: Only the employee contributes and pays privately¶
| SARS Code | IRP5/IT3(a) Description |
|---|---|
| 4006 | Total retirement annuity fund contributions paid and 'deemed paid' by employee (if applicable) |
Travel Allowances¶
| Travel Allowance Type | SARS Codes | IRP5/IT3(a) Description |
|---|---|---|
| Fixed allowance paid regularly | 3701, 4582 | 3701: Total allowance 4582: Taxable portion |
| Reimbursed for expenses (petrol, garage, maintenance, etc.) | 3701, 4582 | 3701: Total allowance 4582: Taxable portion |
| Company Petrol Card (not paid out) | 3701, 4582 | 3701: Total allowance 4582: Taxable portion |
| Reimbursed per Km travelled (Under the prescribed rate) | 3703 | Rate below SARS limit |
| Reimbursed per Km travelled (Over the prescribed rate) | 3702, 3722 | 3702: Non-taxable portion 3722: Taxable portion |
| Company Car | 3802, 4582 | 3802: Use of motor vehicle 4582: Remuneration portion of local allowances and benefits |
| Company Car Under Operating Lease | 3816, 4582 | 3816: Company car acquired under operating lease 4582: Remuneration portion of local allowances and benefits |
Subsistence Allowances¶
Local subsistence¶
| Allowance Type | SARS Codes | IRP5/IT3(a) Description |
|---|---|---|
| Local subsistence (within SARS limits) | 3714 | Other allowances (Non-Taxable) |
| Local subsistence (exceeding deemed amount) | 3704, 3714 | 3704: Subsistence allowance – local (exceeding deemed amount) 3714: Other allowances (Non-Taxable) |
International subsistence¶
| Allowance Type | SARS Codes | IRP5/IT3(a) Description |
|---|---|---|
| International subsistence (within SARS limits) | 3714 | Other allowances (Non-Taxable) |
| International subsistence (exceeding deemed amount) | 3714, 3715 | 3714: Other allowances (Non-Taxable) 3715: Subsistence allowance – foreign (exceeding deemed amount) |
Bursaries and Scholarships¶
Person without a disability¶
| Education Level | Tax Status | SARS Code | IRP5/IT3(a) Description |
|---|---|---|---|
| Basic Education (Grades R-12, NQF 1-4) | Taxable | 3809 | Taxable Bursaries or Scholarships to a non-disabled person – Basic Education |
| Basic Education (Grades R-12, NQF 1-4) | Exempt | 3815 | Non-taxable Bursaries or Scholarships to a non-disabled person – Basic Education |
| Further Education (NQF 5-10) | Taxable | 3820 | Taxable Bursaries or Scholarships to a non-disabled person – Further Education |
| Further Education (NQF 5-10) | Exempt | 3821 | Non-taxable Bursaries or Scholarships to a non-disabled person – Further Education |
Person with a disability¶
| Education Level | Tax Status | SARS Code | IRP5/IT3(a) Description |
|---|---|---|---|
| Basic Education (Grades R-12, NQF 1-4) | Taxable | 3829 | Taxable Bursaries or Scholarships to a disabled person – Basic Education |
| Basic Education (Grades R-12, NQF 1-4) | Exempt | 3830 | Non-taxable Bursaries or Scholarships to a disabled person – Basic Education |
| Further Education (NQF 5-10) | Taxable | 3831 | Taxable Bursaries or Scholarships to a disabled person – Further Education |
| Further Education (NQF 5-10) | Exempt | 3832 | Non-taxable Bursaries or Scholarships to a disabled person – Further Education |
Medical Costs (other than Medical Aid)¶
Special Circumstances¶
| Item | Standard Code | Alternative Code | When Alternative Applies / Notes | IRP5/IT3(a) Description |
|---|---|---|---|---|
| Basic Salary | 3601 | 3616 | If independent contractor. | 3601: Income (Taxable) 3616: Independent contractors |
| Income Protection | 3808 | 3801 | If Employer owns the policy is ticked. | 3808: Employee's debt 3801: General fringe benefits |
| Long Service Award | 3622 and/or 3835 | 3801 | From 1 March 2022: 3622 and/or 3835 Before 1 March 2022: 3801 |
3622: Long Service Award – Cash 3835: Long Service Award – Not Cash 3801: General fringe benefits |
Custom Items¶
| Custom Item Type | SARS Code | Tax Treatment |
|---|---|---|
| Income (not taxed annually) | 3601 | Regular taxable income. |
| Income (taxed annually) | 3605 | Irregular taxable income. |
| Benefits | 3801 | Fringe benefits. |
| Allowances | 3713 | General taxable allowances. |
Items with No IRP5/IT3(a) Impact¶
| Payroll Item | Reason |
|---|---|
| Garnishee | Court-ordered deduction, not taxable income. |
| Maintenance Order | Court-ordered deduction, not taxable income. |
| Union Membership Fee | Personal expense, not tax-relevant. |
| Repayment of Advance | Loan repayment, not income. |
| Staff Purchases | Personal purchase, not income. |
| Expense Claim | Reimbursement, not income. |
| Savings | Employee savings deductions. |
| Reimbursements (Custom) | Expense reimbursement, not income. |
| Employer Contribution (Custom) | Reported separately, not employee income. |
| Medical costs (other than Medical Aid) – Other relatives or dependents | Code discontinued by SARS. |
FAQs¶
Why isn't my payroll item showing the correct SARS code on the IRP5/IT3(a)?
Check that the payroll item is set up correctly. SimplePay assigns the SARS code automatically based on the item type and the way you’ve set up the item.
What does "No impact on IRP5/IT3(a)" mean?
The payroll item won’t appear on the employee’s tax certificate because SARS doesn’t treat it as taxable income or a tax-relevant deduction. You’ll find these items in the Items with no IRP5/IT3(a) impact table above.
How do I know which code applies when an item has multiple options?
Use your Demo Company to test it. Add the relevant item(s) to an employee, and finalise their payslip. Then, go to Filing > Bi-Annual Filing to view their IRP5/IT3(a).
Why do some allowances have both taxable and non-taxable codes?
Some allowances (for example, subsistence allowances) can be taxed in different ways depending on the amount. Amounts within SARS-prescribed limits are non-taxable, and amounts above those limits are taxable.
Why does one payroll item sometimes create multiple SARS codes?
Some payroll items (for example, medical aid or retirement funds) affect more than one part of an employee’s tax position. SARS uses separate codes to track each component – such as employer vs employee contributions, or taxable vs non-taxable contributions, which helps with audit trails and accurate tax calculations.
Are the payroll items automatically linked to the IRP5/IT3(a)?
Yes. SimplePay links payroll items to the IRP5/IT3(a) automatically to comply with SARS requirements.
I need more information about the SARS tax codes on your system. Who can I speak to?
For detailed guidance on SARS tax codes, contact SARS directly. SimplePay is designed to follow the official SARS codes, so SARS is the best source for code definitions, and explanations of why specific codes apply.