An income tax number is the unique identifier SARS assigns to each taxpayer. For an employee it is the reference that ties the tax withheld through payroll to their personal tax record.
What it means
Every employee should be registered for income tax and have a tax number, which the employer captures and reports. SARS registers most employees automatically when an employer first declares them, but the number must appear on the IRP5 so the PAYE paid over can be matched to the right person at assessment.
Where it fits in
The tax number sits on the employee's payroll record and flows onto the IRP5 and the EMP501 reconciliation. Without a valid number, SARS cannot reconcile the employee's certificate, which is a common reason an EMP501 submission is rejected or queried.
Key rules
- A unique SARS reference per taxpayer, distinct from the employer's PAYE reference number.
- Required on the employee's IRP5 certificate.
- SARS often registers employees automatically on first declaration.
- A missing or invalid number blocks reconciliation of the employee's certificate.
