What Is an IRP5 Certificate?
An IRP5 is an employee tax certificate issued by an employer in South Africa. It provides a detailed breakdown of an employee's total remuneration, taxable fringe benefits, deductions, and the tax (PAYE) that was deducted during the tax year.
The IRP5 is a critical document in the South African tax system. It serves as proof of income and tax paid for employees, and it is what SARS uses to pre-populate individual income tax returns (ITR12). When SARS issues an auto-assessment, the data comes primarily from the IRP5.
Every employer who deducts PAYE from an employee must issue an IRP5. There is a related certificate called the IT3(a), which is issued to employees from whom no tax was deducted (for example, those earning below the tax threshold).
IRP5 vs IT3(a) — What's the Difference?
Both are employee tax certificates, but they serve different purposes:
| Certificate | When Issued | Key Difference |
|---|---|---|
| IRP5 | PAYE was deducted from the employee | Shows tax deducted and paid to SARS |
| IT3(a) | No PAYE was deducted | Reports income only — no tax withheld |
What Information Does the IRP5 Contain?
The IRP5 certificate contains:
- Employer details: company name, PAYE reference number, and trading name - Employee details: name, ID number, tax reference number, and date of birth - Employment period: start and end dates for the tax year - Income source codes: detailed breakdown of all income types (basic salary, bonuses, allowances, fringe benefits) - Deduction source codes: pension, provident fund, medical aid, and other deductions - Tax deducted: total PAYE withheld during the year - Employment Tax Incentive (ETI) claimed
Each income and deduction type is identified by a specific SARS source code. These codes tell SARS exactly what type of income or deduction each amount represents.
Key IRP5 Source Codes
Understanding source codes is important for verifying that your IRP5 is correct. Here are the most common codes:
| Code | Description |
|---|---|
| 3601 | Basic salary |
| 3605 | Commission |
| 3606 | Overtime |
| 3701 | Bonus / 13th cheque |
| 3702 | Travel allowance |
| 3810 | Employer pension fund contribution (taxable portion) |
| 4001 | Pension fund deduction (employee) |
| 4003 | Provident fund deduction (employee) |
| 4005 | Retirement annuity fund (employee) |
| 4474 | Medical aid employer contribution |
| 4102 | PAYE / employees' tax |
When Must Employers Issue IRP5 Certificates?
IRP5 certificates are generated and submitted to SARS as part of the annual EMP501 employer reconciliation. The deadline for the EMP501 (and therefore the IRP5 certificates) is 31 May each year for the tax year ended in February.
Once submitted to SARS via the EMP501, the IRP5 data becomes available to employees on SARS eFiling. Employers should also provide copies directly to employees.
If an employee leaves during the year, a final IRP5 covering the period of employment must be included in the next EMP501 reconciliation. It is good practice (and often requested) to provide the departing employee with a copy of their IRP5 shortly after their last payroll run.
How the IRP5 Affects Employee Tax Returns
When an employee files their annual income tax return (ITR12) or receives an auto-assessment from SARS, the IRP5 data is automatically populated. The employee should verify that:
- The gross income matches their payslip records - All allowances and fringe benefits are correctly coded - Deductions (pension, medical aid) are accurately reflected - The total PAYE matches their cumulative payslip deductions
Discrepancies between an IRP5 and an employee's records should be raised with the employer immediately, as the employer must issue a corrected IRP5 via a revised EMP501.
Common IRP5 Issues and How to Fix Them
Incorrect source codes: Using the wrong source code changes how SARS treats the income. For example, coding a travel allowance (3702) as basic salary (3601) means the employee cannot claim travel deductions. Always verify source codes against SARS guidelines.
Missing IRP5: If an employer fails to submit an IRP5, SARS cannot process the employee's tax return correctly. Employees should contact their employer (or former employer) and request submission. If the employer is unresponsive, SARS has procedures for employees to lodge a complaint.
Duplicate IRP5s: If you changed jobs during the year, you should receive an IRP5 from each employer. Both will appear on your SARS eFiling profile. Ensure none are duplicated and that the employment periods don't overlap incorrectly.
Lump sum payments: Retirement fund withdrawals, retrenchment packages, and lump sum payments have specific source codes and tax treatment. These should appear on a separate IRP5 or be correctly coded on the main certificate.
IRP5 for Employers: Best Practices
Reconcile monthly: Don't wait until EMP501 time to check your figures. Reconcile payroll totals against your EMP201 submissions every month. This makes the annual reconciliation straightforward.
Use correct source codes: Refer to the SARS Business Requirements Specification (BRS) document for the full list of valid source codes. When in doubt, consult a payroll specialist.
Keep records for 5 years: SARS may request supporting documents for any IRP5 certificate. Keep payroll records, contracts, and supporting calculations for at least 5 years.
Issue certificates promptly: Employees need their IRP5s to file returns and claim refunds. Submit your EMP501 early to give employees access to their data on eFiling.