A tax reference number identifies a taxpayer, individual or company, to SARS for income tax purposes. It is separate from the reference numbers SARS issues for other tax types the same taxpayer might be registered for.
What it means
A single legal entity can hold several different reference numbers at once: an income tax reference number, a PAYE reference number (if it's an employer), and a VAT number (if it's a VAT vendor). Each identifies the entity within a different tax type on SARS's systems.
Where it fits in
Payroll only interacts with two of these directly - the employer's PAYE reference number on every EMP201 and EMP501, and each employee's income tax reference number on their IRP5. Getting the two number types confused is a common source of submission errors.
Key rules
- Identifies a taxpayer to SARS for income tax specifically.
- Distinct from the PAYE reference number and VAT number, even for the same entity.
- Individuals and companies each hold their own income tax reference number.
- Appears on the IRP5 for the employee it belongs to.
