EXTERNAL GUIDE GUIDE FOR VALIDATION RULES APPLICABLE TO RECONCILIATION DECLARATIONS 2017

Transcription

1 GUIDE FOR VALIDATION RULES APPLICABLE TO RECONCILIATION DECLARATIONS 2017

2 TABLE OF CONTENTS 1 PURPOSE 3 2 SCOPE 3 3 BACKGROUND RECONCILIATION PROCESS INTERIM RECONCILIATION PROCESS GENERAL RULES 5 4 ERROR REPORTS VALIDATION RULES EMPLOYER HEADER RECORD VALIDATION RULES EMPLOYEE INFORMATION RECORD VALIDATION RULES EMPLOYEE FINANCIAL INFORMATION RECORD VALIDATION RULES EMPLOYER TOTALS TRAILER RECORD VALIDATION RULES 35 6 CROSS REFERENCES 36 7 DEFINITIONS AND ACRONYMS 37 8 QUALITY RECORDS 41 REVISION: 0 Page 2 of 41

3 1 PURPOSE The purpose of this guide is to assist employers in understanding the validation rules for completion of Employees Income Tax certificates for SCOPE This guide prescribes validation rules applicable to: data (employee tax certificate information) included in CSV files; and fields on employees tax certificates which are manually completed. Validation rules relating to a specific income or deduction code for 2017 are dealt with in PAYE-AE-06-G06. All fields are mandatory. Pre-printed blank forms will no longer be issued at branches. For more information visit the SARS website > Types of Tax > PAYE. 3 BACKGROUND 3.1 RECONCILIATION PROCESS 2017 ADOBE PROCESS (Employees Income Tax certificates submitted to SARS from 1 March 2016) Changes to the specifications for employees tax certificates and reconciliation processes have been introduced (e.g. additional fields on various reconciliation documents, etc.); The employer demographic information no longer forms part of the certificate as the Certificate Number now contains the PAYE reference number of the employer, which links the employer demographic information to the employee; All validation rules in respect of submissions after February 2012, have been reinstated; With the introduction of this process, the CSV file layout and validation rules were standardised to ensure that all CSV files (irrespective of the transaction year of the file) comply with the same validation rules. 3.2 INTERIM RECONCILIATION PROCESS An interim reconciliation process has been introduced in respect of reconciliation submissions after the February 2010 submission. The interim reconciliation process became effective in August 2010 for reconciliation declarations of 2011 and later transaction years. Employees tax certificates relating to interim reconciliation declarations The employees tax certificate may only be issued to an employee where: o the employer has ceased to be an employer in relation to the employee concerned (e.g. death, retirement, resignation or immigration of the employee); and o the employer has ceased to be an employer (e.g. the employer stopped trading). Employees tax deducted from the employee s remuneration must be reflected under code 4102 (PAYE). REVISION: 0 Page 3 of 41

4 Note 1: It will be accepted in cases where the employer s payroll program does the split programmatically. Note 2: The legal requirements will apply if the employer ceased to be an employer or the employee dies, retires, resigns or immigrates before the closing of the interim period (e.g. 31 August). A final tax calculation at the end of the Employees tax period must be done and the certificate must be issued as a final tax certificate with a calendar month indication of 02 in the certificate number. Reconciliation declarations in respect of the interim submissions: The actual liability per month for the first 6 months of the tax year (i.e from March to August) must be completed on the declaration. Submission of reconciliation documents: The employer reconciles his monthly submission bi-annually at the end of August and February. The six monthly submissions of EMP201 declarations are consolidated into a reconciliation using the EMP501. The reconciliation documents must be submitted via one of the following available channels: o e@syfile, o efiling (WPAYE) and, o Service Manager (walk-in clients) - ETR Work Flow (WPAYE). Note 3: No CSV files will be accepted by SARS. CSV files must be imported into e@syfile TM. Employers who use the e@syfile TM software must also capture all their manual certificates by using the application. Note 4: SARS will only accept an EMP701 for adjustments between the years From the years 2009 going forward, adjustments for reconciliation submissions must be made by resubmitting a modified EMP501. Employment Tax Incentive (ETI) The employer must o Identify all qualifying employees in respect of that specific month; o Determine the applicable employment period for each qualifying employee; o Determine each employee s monthly remuneration ; o Calculate the employment tax incentive amount per qualifying employee; and o Reduce the amount of PAYE payable by the amount of ETI calculated on the EMP201 declaration; Note 5: If the monthly calculated ETI amount claimed exceeds the gross employees tax (before ETI) for a specific month, the excess ETI will be carried forward to the next month. The ETI amount claimed will only be allowed to the extent that the Nett PAYE is equals to zero. Note 6: The excess ETI carry forward amount shall be refunded to the employer at the end of each reconciliation period (August and February). REVISION: 0 Page 4 of 41

5 3.3 GENERAL RULES Tax certificates issued by employers to employees for their personal use may contain additional information, provided that the information required according to the validation rules is included and that the information for the relevant field is valid. Tax certificates submitted to SARS must either be in the XML file format or CSV files: The record structure of CSV files is as follows: o Employer header record; o Employer and financial information records for all tax certificates (including Employment Tax Incentive (ETI) information); and o Employer totals trailer record. Each CSV file may only contain tax certificate information for a single employer (no multiple employer records will be accepted if it is contained in a CSV file). The CSV file format should start with the code, followed by the data for the relevant code, followed by the next code, etc. for example: Code,data,code,data,code,data,code,data,9999 o The first code of the record may not be preceded by any character (e.g. space, comma, etc.); o The last code of the record must be 9999 and may not be followed by any character (e.g. space, comma, etc.). All Alpha, Alphanumeric and Free Text fields must be contained in opening and closing quotation marks (e.g. the surname Horn must be shown as 3020, Horn. Employees Income Tax certificates: The certificate must consist of the following: o The employee s personal information;the employee s financial information o Employment Tax Incentive (ETI) information pertaining to the employee, if any. The tax certificate number must be unique per employer: o the same certificate number may not be used more than once by an employer; and o may not be duplicated in either the current, past or future years of assessments by the employer. Income source codes are restricted to a maximum of 20 and the deduction codes are restricted to a maximum of 12. Local and foreign income source codes may be completed on the same certificate for a specific employee. At least one income source code with a value greater than zero must be completed. However, if it is a director of a private company or a member of a close corporation where the remuneration cannot be determined at the end of the tax period, the source code 3615 may be reported with a zero value. No negative values are accepted. Cents of all amounts must be dropped off/omitted (rounded down), except for the fields containing the tax, SDL and UIF amounts where the cents must be specified even if it is zero. The following codes may only appear once on a certificate: o All the employer information codes o All the employee information codes, excluding code 3230 o All Tax Certificate Information codes representing financial information excluding the following codes: Income Received Codes: 3601 to 3922 and 3651 to 3957 Deduction/Contribution codes: 4001 to 4007, and Employment Tax Incentive Information codes: 7002 to 7004, 7006 and Code 3230 (directive number) may appear up to three times on a certificate. REVISION: 0 Page 5 of 41

6 All income and deduction fields that have a zero value must not be reported except for: o Code 3615; o Codes 3697;3698;2699 o Code 3240; o Code 4005; o Codes 4115; 4116; 4118 o Code 4120; 4141;4142 o Code 7002, 7003; 7004 o Code All cents for Rands must be dropped off with the exception of the following o 4101, 4102, o 4115, 4116, 4118 o 4120 o 4141, 4142, 4149, o 6030, 7002, 7003 and 7004 where the Rand value including the cents must be specified (even if it is zero). 4 ERROR REPORTS An error report will be provided by e@syfile TM when uploading a CSV file on the software. This error report will indicate all the errors that were found when the data of the file was validated. Error messages: The file will be rejected if any error message is displayed. An error message indicates to an employer that the data for the relevant field does not comply with the validation rule and must be corrected before the submission can be accepted by SARS VALIDATION RULES The validations rules to fields only applicable on CSV files will be specifically indicated. Fields not specifically indicated apply to both the field on the CSV file as well as the field on the Employees Income Tax certificate. Important: The updating of the description of certain codes, introduction of new codes and re-activation of codes previously de-activated for certificate reporting purposes are effective from 1 March 2012 onwards. REVISION: 0 Page 6 of 41

7 5.1 EMPLOYER HEADER RECORD VALIDATION RULES Code Field name Validation rules 2010 Trading or other name The trading or other name of the employer issuing the certificate. FT90: Free text field with a field length of 90 Mandatory field. First code of record of the electronic file and may not be preceded by any other character (e.g. space, comma, etc.) 2015 Test/Live indicator The indication that identifies the submission as a test or live submission. A4: Alpha field with a field length of 4 fixed Mandatory field; Value may only be TEST or LIVE; Value must be LIVE if any certificate type is ITREG PAYE reference number The PAYE reference number if the employer is registered for Employees Tax purposes (number under which PAYE is paid to SARS). Alternatively if the employer is not registered for PAYE it will be the Income Tax reference number of the employer. N10: Numeric field with a field length of 10 fixed Mandatory field; Number must start with a 7 if the employee is registered for Employees Tax purposes; Number must start with a 0, 1, 2, 3 or 9 if the employer is not registered for Employees Tax purposes; Number must start with 7 if the employer is registered for Employees Tax purposes; Invalid if code 3015 is IRP5 and this number does not start with a 7; Invalid if code 4101, 4102 and/or 4115 has a value and this number does not start with a 7; Must be a valid reference number (apply modulus 10 test) SDL reference number The SDL reference number if the employer is registered for SDL purposes (number under which SDL is paid to SARS). AN10: Alphanumeric field with a field length of 10 fixed REVISION: 0 Page 7 of 41

8 Mandatory field if registered for SDL or if any value is completed against code 4142; Number must start with a L; Must consist of 1 alpha followed by 9 numerical characters; Last nine digits of this number must be the same as the PAYE reference number if the PAYE reference number starts with 7; Last nine digits of this number must be the same as the UIF reference number if the UIF reference is completed; Must be a valid reference number (apply modulus 10 test) UIF reference number The UIF reference number if the employer is registered for UIF purposes at SARS (number under which UIF is paid to SARS). AN10: Alphanumeric field with a field length of 10 fixed Mandatory field if registered for UIF or if any value is completed against code 4141; Number must start with a U; Must consist of 1 alpha followed by 9 numerical characters; Mandatory field if registered for UIF or if any value is completed against code 4141; Last nine digits of this number must be the same as the PAYE reference number if the PAYE reference number starts with 7; Last nine digits of this number must be the same as the SDL reference number if the SDL reference is completed; Must be a valid reference number (apply modulus 10 test) Employer contact person The full name and surname of the contact person for reconciliation related queries (only applicable to CSV files). A30: Alpha field with a field length of 30 Mandatory field Employer contact number The contact number of the person that has been entered for code 2025 (only applicable to CSV files). AN11: Alphanumeric field with a field length of 11 Mandatory field; Only numeric values allowed; No spaces are allowed; REVISION: 0 Page 8 of 41

9 Plus sign (+) is not allowed; Must consist of at least Employer address The address of the employer (only applicable to CSV files). FT70: Free text field with a field length of 70 Optional field; Address must contain sign and a domain which must be indicated with a dot Payroll software The payroll software package which is being used by the employer or the word in-house in cases where if no commercial software package is used (only applicable to CSV files). FT12: Free text field with a field length of 12 Optional field. If you are not using a commercial software package the word In-house may be used 2030 Transaction year The tax year during which the employer deducted and paid Employees Tax in respect of the remuneration paid of payable to an employee. N4: Numeric field with a field length of 4 fixed characters; Format is: CCYY. Mandatory field if certificate type (code 3015) is not ITREG; Cannot be less than 1999; Cannot be greater than the current calendar year plus one Must not be completed if the value for code 3015 (certificate type) is ITREG Period of reconciliation The submission period to which the reconciliation declaration relates. N6: Numeric field with a field length of 6 fixed characters; Format is: CCYYMM. Mandatory field if the code 2030 (transaction year) is greater than 2010; Must not be completed if the value for code 3015 (certificate type) is ITREG; Must be a valid period in the transaction year; If the transaction year is 2011 and the reconciliation relates to the submission for August 2010, the value should be indicated REVISION: 0 Page 9 of 41

10 as ; If the transaction year is 2011 and the reconciliation relates to the submission for February 2011, the values should be indicated as The Employer Standard To indicate the Employer SIC7 Code relating to Industry Classification the ETI benefits. Code (SIC7) AN5: Alphanumeric field with a field length of 5 characters only valid from Period of Reconciliation 2083 The Employer s Special Economic Zone Code (SEZ) 2035 Employer trade classification Mandatory field. To indicate the Employer SEZ Code relating to the ETI benefits. AN3: Alpha field with a field length of 5 characters only valid from Period of Reconciliation Optional field. The activity code applicable to the employer s business according to the VAT403 Trade Classification guide (only applicable to CSV files). N4: Numeric field with a field length of 4 fixed 2061 Employer physical address: Unit number 2062 Employer physical address: Complex 2063 Employer physical address: Street number Mandatory field in respect of submissions after 31 July The unit number of the physical address of the employer (only applicable to CSV files). AN8: Alphanumeric field with a field length of 8 Optional field. The complex name of the physical address of the employer. FT26: Free text field with a field length of 26 Optional field. The street number of the physical address of the employer. REVISION: 0 Page 10 of 41

11 AN8: Alphanumeric field with a field length of Employer physical address: Street/farm name 2065 Employer physical address: Suburb/District 2066 Employer physical address: City/Town Optional field. The street name or farm name of the physical address of the employer. FT26: Free text field with a field length of 26 Mandatory field. The suburb or district of the physical address of the employer. FT33: Free text field with a field length of 33 Conditional field either the suburb/district field or city/town must be completed. The city or town of the physical address of the employer. FT21: Free text field with a field length of Employer physical address: Postal code 2081 Employer physical address: Country code Conditional field either the suburb/district field or city/town is completed.. Mandatory field; Fixed length; Must be a valid RSA postal code (0000 will be rejected as invalid) eg must be captured as 0040 not 40 ( 40 will be rejected); Only numerical characters (0 9) are allowed. Mandatory Defaults to ZA 9999 End of Employers record Indicates the end of the record. Field Layouts: N4: Numeric field with a field length of 4 fixed Mandatory field; Fixed code; Last code of electronic record and it may not be followed by any other character (e.g. space, comma, etc.) REVISION: 0 Page 11 of 41

12 5.2 EMPLOYEE INFORMATION RECORD VALIDATION RULES Code Field name Validation rules 3010 Certificate number The unique certificate number allocated by the employer to certificates issued to employees. AN30: Alphanumeric field with a field length of 30 fixed characters; Format of number must be as follows: o First 10 digits must be the same as the value for code 2020 (PAYE or income tax reference number); o Followed by the value for code 2030 (transaction year); o Followed by the concluding calendar year month. Note: Note: If the reconciliation is for the period up to February, 02 must be used and if the reconciliation is for the period up to August, 08 must be used; The last 14 digits must be a unique combination of alpha and numeric numbers allocated by the employer. Should all 14 digits not be used, left padding with zeros after the period must be applied (e.g. if the first 16 digits is and the unique number is 52214, it must be completed as ). Mandatory field; Must be an unique number per employee and may never be reused in any prior, current or future transaction year (unless it replace a certificate with the same number); May not include a dash (-), space ( ), apostrophe ( ), comma (,) or characters such as ê, ë, etc; Must not be completed if the value for code 3015 (certificate type) is ITREG. Note: In respect of submissions before 1 August 2010: If the certificate number consist of only 8 digits, the e@syfile TM software will display a warning message and update the certificate number automatically; If the value for code 3015 (certificate type) is ITREG, the e@syfile TM software will store the certificate number automatically as the ID or passport number and fill the rest of the field with zeros (this is required for tracking purposes as the certificate number is part of the minimum data). REVISION: 0 Page 12 of 41

13 3015 Type of certificate Indication of the type of certificate. AN6: Alphanumeric field with a field length of 6 Mandatory field; If IRP5 is indicated either code 4101,4102 or 4115 must have a value greater than zero and code 4150 must not be included; If IT3(a) is indicated, code 4150 must have a value and code 4101,4102 and 4115 must not be included; Must be a valid value (can only be: IRP5, IT3(a) or ITREG); IRP5 cannot be indicated if the PAYE number starts with 0,1,2,3 or Nature of person The nature of person applicable to the employee (refer to the definition). A1: Alpha field with a field length of 1 fixed character. Mandatory field; Must be a valid value (can only be: A, B, C, D, E, G, H or N); If Type of Certificate is ITREG, the Nature of a person must be A, B, C, M, N or R Year of assessment The tax year during which the remuneration was paid or become payable (accrued) to the employee. N4: Numeric field with a field length of 4 fixed characters; Format is: CCYY ETI (Employment Tax Incentive) Indicator. Mandatory field; Cannot be less than Where year of assessment is less than 1999, the certificate must be included in the 1999 reconciliation reconciliations prior to this date may not be accepted; Cannot be greater than the current calendar year plus one; Cannot be greater than the value for code 2030 (transaction year); Must not be completed if the value for code 3015 (certificate type) is ITREG. Conditional - must only be completed if type of certificate (code 3015) is IRP5 or IT3(a) and Year of Assessment (code 3025) is 2014 or later and period of reconciliation (code 2031) is or later. If the condition specified above is met then the value can only be Y (Yes) or N (No). REVISION: 0 Page 13 of 41

14 3030 Employee surname or trading name Note: Must not be reported on the certificate that will be issued to the employee. The surname of the employee if the nature of person is A, B, C, M, N or R and the trading name of the employee if the nature of person is a D, E, G or H. FT120: Free text field with a field length of 120 Mandatory field; Numeric characters are not allowed if the nature of person is A, B, C, N or R If the nature of person is A, B, C, N or R enter the surname of the individual If the nature of person is D, E, G or H the trading name of the trust/company/partnership or corporation must be entered First two names The first two names of the employee (if individual). FT90: Free text field with a field length of 90 Mandatory field if nature of person is A, B, C, M, N or R; Mandatory field if the initials (code 3050), date of birth (code 3080), identify number (code 3060) or passport number (code 3070) is completed; Numeric characters are not allowed; Will be rejected if supplied with nature of person D, E, G or H Initials The initials of the employee (if individual). A5: Alpha field with a field length of Identity number Note: Old non-barcoded ID numbers and Refugee ID numbers must be populated in this field. Mandatory field if nature if person is person is A, B, C, N or R. Mandatory field if the date of birth (code 3080) or identify number (code 3060) is completed; Only characters A to Z may be used; May not include a full stop (.), dash (-), space ( ), apostrophe ( ), comma (,) or characters such as ê, ë, etc. Will be rejected if supplied with nature of person D, E, G or H. The South African identity number of the employee (if individual). N13: Numeric field with a field length of 13 REVISION: 0 Page 14 of 41

15 fixed Mandatory field if the nature of person is A or C and passport number is not completed. Mandatory if the nature of a person is R and optional if the nature of a person is N. Invalid and will be rejected if supplied with nature of person B, D, E, F,G,H or M. Must correlate with the date of birth completed; Must be a valid South African identity number (other numbers must be completed in the passport number field); Must correlate with the date of birth Foreign Passport number Foreign passport number of the employee (if individual). AN18: Alphanumeric field with a field length of 18 Mandatory field if the nature of person is A, C; and identity number is not completed and optional field if the nature of person is N, M or R. Must consist of at least 6 characters; Invalid and will be rejected if supplied with nature of person B, D, E,F, G or H; No spaces are allowed; Country of issue must be completed Country of issue The country that issued the passport (if individual). A3: Alphanumeric field with a field length of 3 fixed Mandatory field if the passport number (code 3070) is completed; Must be a valid value (refer to the list for the country of issue codes); Invalid and will be rejected if supplied with nature of person D, E, G or H. Country of issue may not be ZAF Date of birth The date of birth of the employee (if individual. N8: Numeric field with a field length of 8 fixed characters Format is: CCYYMMDD. Mandatory field if the person is person is A, B, C, M, N, or R; Must correlate with the identity number (if any) Date cannot be greater than the current date; Invalid and will be rejected if supplied with nature of person D, E, G or H. REVISION: 0 Page 15 of 41

16 3100 Income tax reference The income tax reference number of the number employee. N10: Numeric field with a field length of 10 fixed 3263 The Employer Standard Industry Classification Code (SIC7) Mandatory field in respect of submissions after 31 July 2010 and optional field if the code 3015 (certificate type) is ITREG; Number must start with 0, 1, 2 or 3 if the nature of person is A, B, C, D, M, N, or R; Number must start with 9 if the nature of person is E, G or H; Invalid and will be rejected if supplied with nature of person F; Must be a valid number (apply modulus 10 test). If type of certificate is ITREG, this filed is optional for verification purposes. To indicate the Standard Industrial Classification (SIC Coder v7, as defined on the Statistic SA Website: relating to the ETI Benefits. AN5: Alphanumeric field with a field length of 5 Use the 5-digit sub-class If the certificate type is ITREG this field must not be completed The Employer s Special Economic Zone Code (SEZ) Mandatory if the nature of the person is not N and the Period of Reconciliation is or later. Only numeric values allowed. To indicate the Employer SEZ Code relating to the ETI benefits. AN3: Alpha field with a field length of 5 characters If the certificate type is ITREG this field must not be completed.. Optional field Employee The address of the employee. FT70: Free text field with a field length of 70 Optional field; Address must contain sign and a domain which must be indicated with a dot. REVISION: 0 Page 16 of 41

17 3135 Employee s home The home telephone number of the employees. telephone number AN11: Alphanumeric field with a field length of Employee s business telephone number Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least 9 The business telephone number of the employees. AN11: Alphanumeric field with a field length of 11 Mandatory field if nature of person is not N; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least Employee s fax number The fax number of the employees. AN11: Alphanumeric field with a field length of Employee s cellular number 3144 Employee s physical work business address: Unit number 3145 Employee s physical work business address: Complex Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least 9 The cellular number of the employees. The field must at least have 10 digit number. Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed. The unit number of the e address where the employee mainly works. AN8: Alphanumeric field with a field length of 8 Optional field. The complex name of the address where the employee mainly works. REVISION: 0 Page 17 of 41

18 FT26: Free text field with a field length of Employee s physical work business address: Street number 3147 Employee s physical work business address: Street/farm name 3148 Employee s physical work business address: Suburb/District 3149 Employee s physical work business address: City/Town 3150 Employee s physical work business address: Postal code Optional field. The street number of the address where the employee mainly works. AN6: Alphanumeric field with a field length of 6 Optional field. The street name or farm name of the address where the employee mainly works. FT26: Free text field with a field length of 26 Mandatory if the nature of person is not N. The suburb or district of the address where the employee mainly works. FT33: Free text field with a field length of 33 Conditional field either the suburb/district field or city/town field must be completed, if the nature of person in not N. The city or town of the address where the employee mainly works. FT21: Free text field with a field length of 21 Conditional field either the suburb/district field or city/town field must be completed, if the nature of person in not N. The postal code of the address where the employee mainly works. AN9: Alphanumeric field with a field length of 9 Conditional If field Employee Physical Work Address Details Country Code (code 3151) is ZA and the nature of a person is not N, then this field is mandatory, must consists of the following o Must consists of 4 numeric characters(e.g must be written on REVISION: 0 Page 18 of 41

19 the import file as 0040 not as 40 o Must not be 0000 If field Employee Physical Work Address Details Country Code (code 3151) is not ZA, then this field is optional. If the nature of a person is N, then the field 3160 Employee s payroll number is optional. The unique payroll number of the employee which the employer allocated to identify his/her employees. FT25: Alphanumeric field with a field length of 25 Mandatory field for nature of person B, and N. Optional for nature of person A, C, D, E, F, G,H, M and R Period employed from The first day of the Employees Tax period in the specific year of assessment (normally the first day of the tax year or the first day the employee starts working for the employer in that tax year if the employee was not employed on 1 March). N8: Numeric field with a field length of 8 fixed characters Format is: CCYYMMDD. Mandatory field; Must be in the format CCYYMMDD Must be a valid date and cannot later than the current date; Cannot be later than the date completed in the period employed to field (code 3180); Invalid and will be rejected if the code 3015 (certificate type) is ITREG; A date falling in a previous tax year may only be completed if it relates to a lump sum payment that accrued to the employee in the previous tax year (tax year of the certificate must still be indicated as the tax year during which the tax was paid over to SARS) Period employed to The last day of the Employees Tax period in the specific year of assessment (normally the last day of the tax year or the last day the employee worked for the employer in that specific tax year if the employee was not employed on 28 February). N8: Numeric field with a field length of 8 fixed characters; Format is: CCYYMMDD. Mandatory field; Must be in the format: CCYYMMDD; REVISION: 0 Page 19 of 41

20 Must be a valid date and cannot later than the current date plus 30 days; Cannot be earlier than the date completed in the period employed from field (code 3170); Invalid and will be rejected if the code 3015 (certificate type) is ITREG; A date falling in a previous tax year may only be completed if it relates to a lump sum payment that accrued to the employee in the previous tax year (tax year of the certificate must still be indicated as the tax year during which the tax was paid over to SARS) Pay periods in a year of assessment The number of pay periods in which the employer has divided his tax year into (e.g. intervals at which the employee is remunerated), for example: 52 or 53 pay periods if the employee is weekly remunerated; 26 pay periods if the employee is fortnightly remunerated; 12 pay periods if the employee is monthly remunerated; 365 pay periods if the employee is daily remunerated. N3.4: Numeric field with a field length of 3.4 (fixed decimals). Mandatory field ; If the certificate type is ITREG, this field must not be completed Must have a decimal point and 4 digits after the decimal point even if the decimal value is zero; Cannot be less than the value completed for pay periods worked (code 3210); May be completed as if it relates to a lump sum payment which is the only income completed on the certificate. Number of equal pay periods the employer divided his/her tax year into and is normally determined according to intervals the employees are remunerated e.g. o Weekly o Fortnightly o Monthly o Daily paid employees. If the certificate type is ITREG this field must not be completed Pay periods worked The number of pay periods (indicated in code 3200) of which the employee was actually employed by the employer for the year of assessment. N3.4: Numeric field with a field length of 3.4 (fixed decimals). REVISION: 0 Page 20 of 41

21 Mandatory field; Number of equal pay periods the employee has worked in the year of assessment (pay periods worked which is shorter than a full pay period must be indicated as a decimal fraction of such pay period). Invalid and will be rejected if the code 3015 (certificate type) is ITREG; Must have a decimal point and 4 digits after the decimal point even if the decimal value is zero; Cannot be greater than the value completed for pay periods in tax year (code 3200); May be completed as if it relates to a lump sum payment which is the only income completed on the certificate Employee s residential address: Unit number The unit number of the residential address of the employee: AN8: Alphanumeric field with a field length of Employee s residential address: Complex Optional field. The complex name of the residential address of the employee: FT26: Free text field with a field length of Employee s residential address: Street number Optional field. The street number of the residential address of the employee: AN8: Alphanumeric field with a field length of Employee s residential address: Street/farm name 3215 Employee s residential address: Suburb/District Optional field. The street name or farm name of the residential address of the employee. FT26: Free text field with a field length of 26 Mandatory field. The suburb or district of the residential address of the employee: FT33: Free text field with a field length of 33 REVISION: 0 Page 21 of 41

22 Conditional field, either the suburb/district field (Code 3215) or the city/town field (Code 3216) must be completed Employee s residential The city or town of the residential address of the address: City/Town employee: FT21: Free text field with a field length of Employee s residential address: Postal code Conditional field, either the suburb/district field (Code 3215) or the city/town field (Code 3216) must be completed. The postal code of the residential address of the employee: AN9: Alphanumeric field with a field length of 9 characters If South African Address, 4 numeric characters must be supplied, (e.g must be captured on the CSV file as 0040 and not as 40 ). If International Address, capture 0000 or supply the international postal code Employee s postal address details - PO Box or Private Bag indicator Complete Employee s postal agency or sub-unit (if applicable) e.g. Postnet Suite ID Mandatory field; The postal code of the nearest town/city must be used in cases where no postal code exists for the specific residential city/town Indicates whether the employee s postal address is a PO Box or Private Bag address A1: Alpha field with a field length of 1 character. Either P O Box or Private Bag (Code 3249) or Other P O Special Service (Code 3280) must be completed. Must not be completed if field Address is a Street Address (Code 3247) is Y Value can only be P O Box or Private Bag. Indicates the unit employee s postal agency or sub-unit number (e.g. Postnet Suite ID, with or without a Private Bag) FT21: Free text field with a field length of 21 Optional REVISION: 0 Page 22 of 41

23 Note: This field must be completed with the Postal Agency / Sub Unit name together with the Postal Agency / Sub Unit number, e.g. Postnet Suite Employee s other (PO) Indicated the employee s other special postal special service (specify) services (e.g. Military field service address). FT10: Free text field with a field length of Employee s postal address details: Post Office 3254 Employee s address details: Postal Code Conditional - If Address is a Street Address (Code 3247) is N either Employee Postal Address Details, PO Box (Code 3249) or Employee Postal Address Details, Private Bag (Code 3250) or Other PO Special Service (Code 3280) must be completed Must not be completed if field Address is a Street Address (Code 3247) is Y. Indicates the name of the post office branch of employee s postal address FT22: Free text field with a field length of 22 Mandatory. Indicates the postal code of the postal address of the employee. AN9: Alphanumeric field with a field length of Employee s postal address number Conditional If field Employee Postal Address Details Country Code (Code 3286) is ZA and Nature of a Person is not N, then this field is mandatory. Must consists of 4 numeric characters (e.g must be written on the import file as 0040 and not as 40 ). Must not be If field Employee Postal Address Details Code (Code 3286) is not ZA, then this field is optional If the Nature of a Person is N, then this field is optional. Indicates a number for the P.O. Box or Private Bag. FT8: Free text field with a field length of 8 REVISION: 0 Page 23 of 41

24 Mandatory if field 3249 or 3250 is marked with an X Employee s Postal Indicates the postal unit of the Employee s postal Address Details : Unit address number AN8: Alphanumeric field with a field length of Employee s address details: Postal Complex Optional field Indicates the postal complex of the Employee s postal address FT26: Free text field with a field length of Employee s address details: Postal Street Address 3258 Employee s address details: Street/name of farm 3259 Employee s address details: Suburb/District Optional field. Indicates the postal street address of the employee s postal address AN8: Alphanumeric field with a field length of 8 Optional field. Indicates the street/name of farm of the employee s postal address FT26: Free text field with a field length of 26 Mandatory field. Indicates the suburb/district of the employee s postal address FT33: Free text field with a field length of Employee s address details: City/Town Conditional Either the Suburb/District field (Code 3259) or the City/Town (Code 3260) field must be completed Indicates the city/town of the employee s postal address FT21: Free text field with a field length of 21 Conditional Either the Suburb/District field (Code 3259) or the City/Town (Code 3260) field must be completed REVISION: 0 Page 24 of 41

25 3261 Employee s address Indicates the postal code of the employee s postal details: Postal code address AN10: Alphanumeric field with a field length of Employee s postal address C/O If field Employee Postal Address Details Country Code (code 3287) is ZA and the nature of a person is not N, then this field is mandatory. Must consists of 4 numeric characters (e.g must be written on the import file as 0040 and not as 40 ). Must not be 0000 Indicates the employees postal address is a C/O (Care of) postal address. A1: Alpha field with a field length of 1 character. Mandatory field. The value can only be Y (Yes) and N (No) Directive number The number of the tax directive issued by SARS in respect of the employee. AN15: Alphanumeric field with a field length of 15 Mandatory field if a value for code 3608, 3614, 3707, 3757, 3718, 3768, 3901, 3902, 3903, 3904, 3905, 3915, 3920 or 3921 and/or 3922 is completed; This code may be repeated up to a maximum of 3 times. Note: Where more than one directive was issued in respect of the employee during the year of assessment, the code must be repeated for each directive number, for example: code, directive no 1, code, directive no 2, code, directive no 3; Invalid if the certificate type (code 3015) is ITREG Employee s bank account: Type Note: Optional field in respect of submissions before 1 August 2010, but the validation rules will apply if the field is completed. The type of bank account of the employee (refer to the definition). N1: Numeric field with a field length of 1 REVISION: 0 Page 25 of 41

26 fixed character Employee s bank account: Number 3242 Employee s bank account: Bank Branch number 3243 Employee s bank account: Bank name 3244 Employees bank account: Bank branch name 3245 Employees bank account: Account holder name Mandatory field; Value may only be: 0, 1, 2, 3, 4, 5, 6 or 7. If not paid by electronic bank transfer (0) or foreign bank account (7) is selected, and then all remaining fields in the bank account details section are no longer mandatory. The bank account number of the employee: N16: Numeric field with a field length of 16 Mandatory field if the value for bank account type (code 3240) is not 0 or 7. Only numeric values allowed The code and the value must not be generated if code 3240 is 0 or 7. The branch number of the bank relating to the bank account of the employee: N6: Numeric field with a field length of 6 Mandatory field if the value for bank account type (code 3240) is not 0 or 7. The code and the value must not be generated if code 3240 is 0 or 7. The name of the bank relating to the bank account of the employees. FT50: Free text field with a field length of 50 Optional field; The code and the value must not be generated if code 3240 is 0 or 7. The name of the bank branch relating to the bank account of the employees. FT50: Free text field with a field length of 50 Optional field; The code and the value must not be generated if code 3240 is 0 or 7 The account holder name relating to the bank account of the employees. FT49: Free text field with a field length of 49 REVISION: 0 Page 26 of 41

27 3246 Employees bank account: Account holder relationship 3287 Employee Postal Address Details Country Code Mandatory field if the value for bank account type (code 3240) is not 0 or 7; The code and the value must not be generated if code 3240 is 0 or 7. The relationship of the employee with the account holder relating to the bank account of the employees (refer to definition). N1: Numeric field with a field length of 1 fixed character. Mandatory field if employees salary is paid into a bank account; Value may only be: 1, 2 or 3; The code and the value must not be generated if code 3240 is 0 or 7. Indicates the country code of Employee s postal address Validation Rules: Mandatory if the field Address is a Street Address (Code 3247) is N Must not be completed if field Address is a Street Address (Code 3247) is Y End of Employees record Indicates the end of the record. Field Layout: N4: Numeric field with a field length of 4 fixed Mandatory field; Fixed code; Last code of electronic record and it may not be followed by any other character (e.g. space, comma, etc.) REVISION: 0 Page 27 of 41

28 5.3 EMPLOYEE FINANCIAL INFORMATION RECORD VALIDATION RULES Code Field name Validation rules 3601/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /3922 Income codes This includes all remuneration paid/payable to the employee by the employer and must be specified as per the list of codes allocated to each source. The description of the codes must not be included in the electronic CSV files N15: Numeric field with a field length of 15 Mandatory field (at least one income code must be completed with a value); Value must be greater than zero with the exception of code 3615 which may have a zero value; Cents must be omitted (decimal in amount is invalid); Invalid if the certificate type (code 3015) is ITREG; No negative amounts are allowed and will be rejected if completed; May not exceed a maximum of 13 codes per certificate; The value for code 3810/3860 must be less than the value for code 4474 if the year of assessment is 2007, 2008, 2009 or 2010; must be equal to the value for code 4474 if the year of assessment is greater than 2010; The value for code 3813/3863 must be equal or greater than the value for code 4024; Code 3915, 3920, 3921 and/or 3922 is mandatory if a value for code 4115 is completed; Code 3615/3665 is invalid if the nature of person is not C; Code 3810/3860 is invalid if a value is completed for code 4493; Code must be valid for the specific year of assessment: o Codes invalid after 2009: 3604, 3654, 3607, 3657, 3609, 3659, 3612, 3662, 3705, 3755, 3706, 3756, 3709, 3759, 3710, 3760, 3711, 3761, 3712, 3762, 3716, 3766, 3803, 3853, 3804, 3854, 3807, 3857, 3902, 3952, 3904 and 3954 o Codes are valid from 1999 to 2009 and from , 3653, 3610, 3660, 3815, 3865, 3806, 3856, 3808, 3858, 3809, 3859 o Code is applicable from 2001 year of assessment 3613, 3663 o Code is applicable from 2002 year of assessment REVISION: 0 Page 28 of 41

29 o o o o o o o o o o o o o o o o 3614 Code is applicable from 2003 year of assessment 3615, 3665 Code is applicable from 2004 year of assessment 3616, 3666 and 3617 Code is applicable from 2015 year of assessment 3618 and 3668 Code is applicable from 2017 year of assessment 3619 and 3669 Code is applicable from 2005 year of assessment 3715, 3765, 3716, 3766, 3717, 3767, 3718 and 3768 Code is applicable from 2007 year of assessment 3813, 3863, 3909 and 3915 Code is applicable from 2013 year of assessment 3815, 3865 Code is applicable from 2014 year of assessment 3816, 3866, 3820, 3821, 3870 and 3871 Code is applicable from 2015 year of assessment 3817, 3818, 3819, 3822, 3867, 3868, 3869 and 3872 Code is applicable from 2017 year of assessment 3825/3875 Code is applicable from 2017 year of assessment 3828/3878 Code is applicable from 2009 year of assessment 3903, 3953, 3905 and 3955 Code is applicable from 2006 year of assessment 3908 Code is applicable from 2007 year of assessment 3909 Code is applicable from 2008 year of assessment 3915 Code is applicable from 2010 year of assessment 3920 and 3921 Code is applicable from 2012 year of assessment 3922 Invalid and will be rejected if the code 3015 (certificate type) is ITREG. Note: Code 3702 may not be reflected on an IRP5/IT3(a) together with code 3701 REVISION: 0 Page 29 of 41

30 and/or 3702 from the 2014 year of assessment. The value of code 3702 must be included in the value of code 3701; The value of code 3703 may not exceed the value determined by multiplying 8000 kilometres with the prescribed rate per kilometre applicable to the relevant year of assessment (i.e. par 4 of the fixed rate per kilometre i.r.o. motor vehicles). If the 3703 value exceeds the prescribed rate per km x 8000 km, then the 3703 value must be Gross remuneration amounts added to The gross remuneration totals of the income amounts completed on the certificate. N15: Numeric field with a field length of 15 Code 3696 (Gross non-taxable income) o Mandatory if values are completed under code 3602/3652, 3703/3753, 3714/3764, 3815/3865, 3908, 3922(Excl); o 3922 (Excl) to be added under this code only if he value does not exceed R300, 000; o Value must be equal to the sum total of all the values completed under codes code 3602/3652, 3703/3753, 3714/3764, 3815/3865, 3908, 3922(Excl). o No negative amounts are allowed and will be rejected if specified. o Cents must be omitted (decimal amount is invalid). o The mounts indicated under this code must be excluded from 3697 and o 3696 plus 3697 plus 3698 must be equal to the amounts supplied under income. o If the certificate type is ITREG this field must not be completed. Code 3697 (Gross retirement funding income) o Mandatory field if no value is indicated under code 3696 or Where code 3615/3665 is ) and no other income codes are specified, value must be nil. o No negative amounts are allowed and will be rejected if specified. o Cents must be omitted (decimal amount is invalid). o 3696 plus 3697 plus 3698 must be equal to the amounts supplied under income. o If the certificate type is ITREG this field must not be completed. REVISION: 0 Page 30 of 41

31 Code 3698 (Gross non-retirement funding income) o Mandatory if no values is completed for code 3696 or 3697; o Where code 3615/3665 is 0 and no other income codes are specified, value must be nil. o No negative amounts are allowed and will be rejected if specified; o Cents must be omitted (decimal in amount is invalid); o If 3922 (PAYE) value exceeds R 300,000 and is non-retirement funding income, the full amount must be included under this code; o Invalid and will be rejected if the code 3015 (certificate type) is ITREG; o 3696 plus 3697 plus 3698 must be equal to the amounts supplied under income. o If the certificate type is ITREG this field must not be completed; o Code 3695 is invalid for years of assessment after 2009 o Each of these codes may only be used once per certificate Deductions / contributions Code 3699 o Invalid from 2010 to 2016 years of assessment. The deductions which were deducted from the Employees remuneration as well as the information relating to employer contributions or values applied. N15: Numeric field with a field length of 15 Mandatory field if deductions/contributions in respect of any of these codes were made; Cents must be omitted (decimal in amount is invalid); Invalid and will be rejected if the code 3015 (certificate type) is ITREG; No negative amounts are allowed and will be rejected if specified; May not exceed a maximum of 7 codes per certificate; The value for code 4024 may not be greater than the sum of the values for codes 3813 and 3863; Code 4005 and 4474 is mandatory for years of assessment after 2006 if an amount is specified for code 3810/3860; Code 4005 can have a value of 0 if valid 3230 (Directive number) specified; Codes 4002, 4007 and 4018 are not applicable with effect from the 2016 year of assessment; REVISION: 0 Page 31 of 41