An IRP5 (or IT3(a) for income below the tax threshold where no PAYE was withheld) is the tax certificate an employer must generate for every employee at the end of the tax year. It is the document employees attach to, or reference in, their personal income tax return.
What it means
The certificate lists income by SARS source code: basic salary, bonus, allowances, fringe benefits, retirement contributions and the PAYE/UIF/SDL withheld against them. SARS pre-populates an employee's personal tax return with this data, which is why accuracy at payroll level matters - errors here become errors on the employee's own return.
Where it fits in
IRP5/IT3(a) certificates are generated from the annual EMP501 reconciliation, not independently. An employer cannot issue a correct certificate until its EMP201 declarations for the full tax year reconcile.
Key rules
- Issued annually, after the EMP501 reconciliation for the tax year (March-February) is finalised.
- Source codes determine how each amount is taxed and where it appears on the employee's return.
- IT3(a) is used where no tax was withheld (income below the threshold); IRP5 is used wherever PAYE was deducted.
- Employees need this certificate to file an accurate personal income tax return.
