A tax certificate is the document summarising what an employee earned and what tax was withheld over a tax year. It is the employee's evidence for their own tax return and SARS's check against the employer's declarations.
What it means
There are two forms of the same certificate. An IRP5 is issued where PAYE was deducted; an IT3(a) is issued where remuneration was paid but no PAYE was due. Both carry the year's income and deductions broken down by SARS source code, the employee's tax number and the employer's PAYE reference.
Where it fits in
Certificates are generated at the reconciliation points, usually in e@syFile, from the year's payroll data. They must reconcile in total to the EMP201 declarations on the EMP501, and each is given to the employee for their assessment. Their source-code detail is what lets SARS pre-populate an individual's return.
Key rules
- The year-end record of an employee's income and tax.
- An IRP5 where PAYE was deducted; an IT3(a) where none was due.
- Broken down by SARS source code, with the employee and employer references.
- Must reconcile in total to the EMP201 declarations via the EMP501.
