Nature of person is the classification SARS requires payroll to record for every employee, identifying their tax status - most commonly a natural person, but also categories like asylum seeker, refugee, personal service provider or personal service trust.
What it means
Different categories of person are taxed differently and have different identity document requirements - a natural person is identified by a South African ID number, while an asylum seeker is identified by a permit number instead. The classification also affects eligibility for incentives like ETI, which has specific identity document requirements per category.
Where it fits in
The nature of person code is captured when an employee is onboarded and is required on the IRP5 submitted to SARS, since it determines which identity reference (ID number vs. permit number) and tax treatment rules apply to that employee's record.
Key rules
- Determines which identity document type (ID number, passport, permit number) SARS expects for that employee.
- Affects ETI eligibility, since qualifying identity document categories differ by nature of person.
- Required as a specific field on the IRP5 - an incorrect classification can cause submission rejections.
- A personal service provider or personal service trust is taxed differently from an ordinary natural person employee.
