IRP5 Codes: These are codes dictated by SARS for specific data pieces that are reported on an employees’ IRP5 or IT3(a).
Tax Certificates: Tax Certificates are a declaration by the employer to SARS and the employee to show the income that was earned by the employee for the specific tax year. The Tax Certificate will contain IRP5 codes and the content of these codes will highlight all values relating to earnings, allowances, types of deductions, tax, etc.
The BRS is the Business Requirement Specification that SARS issues every year to identify/inform:
- in what format an IRP5 will needs to be submitted to SARS
- the meaning and purpose of each IRP5 code set out within the BRS
- the validation rules for the contents of each IRP5 code
Employer Reconciliation Process: This process happens at the end of the tax year (Feb) and in the middle of the tax year (Aug). Employers are obliged to submit employee certificates and to reconcile EMP201 declarations and payments.