What is IRP5 Certificate?
Definition
An IRP5 is an employee tax certificate issued by employers in South Africa, summarising an employee's income and tax deductions for the tax year.
Explained Simply
The IRP5 (or IT3(a) for non-employees) is a critical document for filing your annual tax return. It shows gross income, PAYE deducted, pension and retirement fund contributions, medical aid contributions, and other deductions. Employers submit IRP5 data to SARS as part of the annual EMP501 reconciliation. When filing your personal tax return on eFiling, your IRP5 data is usually pre-populated. If you had multiple employers, you'll receive multiple IRP5s.
Related Terms
PAYE (Pay As You Earn)
PAYE is the system through which employers deduct income tax from employees' salaries and pay it directly to SARS on their behalf each month.
Taxable Income
Taxable income is the portion of total income on which income tax is calculated, after subtracting all allowable deductions and exemptions as defined by SARS.
Simplify your accounting with Accounter
South African accounting software built for accountants, bookkeepers, and small businesses.
Start Free Trial