IRP5 and IT3 Explained: What You Need to Know for Tax Season

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We’d like to explain how these certificates are generated so that when you receive yours, you understand what it means and why it matters. Two documents that often cause confusion are the IRP5 and the IT3. Here’s a straightforward guide to help you make sense of them before submitting your return.

What is an IRP5?

Your IRP5 is your employee tax certificate, issued by your employer at the end of the tax year. It includes:

  • Your income (salary, bonuses, allowances)

  • PAYE (Pay-As-You-Earn) tax deducted

  • Contributions to retirement funds and medical aid

  • Periods worked – start and end dates of your employment during the tax year

  • Income tax codes – these codes classify the type of income you earned (e.g., salary, allowances, fringe benefits)

Your employer’s payroll system creates the IRP5 and submits it electronically to SARS using e@syFile. When you log into SARS eFiling, your IRP5 details are usually already there.

Why Are Income Tax Codes Important?

Income tax codes determine how SARS treats your income. For example:

  • Certain income (e.g., reimbursive travel allowance) may be non-taxable.

  • If the wrong code is used, SARS will calculate tax incorrectly.

  • The only way to correct an incorrect code or any IRP5 detail is to go back to your employer to update and resubmit the IRP5.

Can SARS Update Your IRP5?

No. SARS cannot change any details on your IRP5. If there is an error:

  • SARS will instruct you to contact your employer.

  • Your employer must resubmit the corrected IRP5 to SARS.

What is an IT3?

The IT3 is a tax certificate for non-salary income, such as:

  • IT3(b): Interest and dividends from banks or investments

  • IT3(c): Capital gains or losses

Financial institutions issue these certificates and send them to SARS, so they also appear on your eFiling profile.

What is an IT3(t) for Trusts?

From recent SARS updates, trusts now have an additional reporting requirement:

  • IT3(t) is a third-party data return that provides details of amounts vested in beneficiaries by a trust during the year of assessment.

  • Trustees (or their appointed tax practitioner) must submit this return to SARS by 30 September each year.

  • The IT3(t) is generated based on the trust’s financial records and beneficiary distributions and is submitted electronically via SARS eFiling.

  • This ensures SARS has accurate data on what beneficiaries received, which they must also declare in their personal tax returns.

Trusts must also file an ITR12T (the trust income tax return) annually, along with supporting documents such as the trust deed, annual financial statements, and trustee resolutions. These documents must be uploaded on eFiling during the trust filing season (20 September to 19 January).

Why These Matter

SARS uses IRP5, IT3, and IT3(t) data to verify your tax return. If your employer, financial institution, or trustee submits these correctly, your return will match SARS records—reducing the risk of audits or delays.

South African Tax Season Timeline

  • Tax Year: 1 March to 28/29 February

  • Filing Season for Individuals: Usually starts in July and runs until October (for non-provisional taxpayers) and January for provisional taxpayers.

  • Provisional Taxpayers: Have additional provisional tax deadlines in August and February.

  •   Trust Filing Season: 20 September to 19 January

  •   IT3(t) Submission Deadline: 30 September

Your IRP5 and IT3 should be ready by the start of filing season. Always check your e-Filing profile before submitting your return if you are using auto-assessments.

What You Should Do

  • Log into SARS eFiling and confirm your IRP5 and IT3 details.

  • Check your periods worked and income tax codes carefully.

  • If something looks wrong, contact your employer or financial institution immediately—SARS cannot fix these errors.

  • Keep these documents for your records.

Key Takeaways

  • Always review your IRP5 before filing your tax return.

  • SARS cannot update IRP5 details; only your employer can.

  • Pay special attention to income tax codes to avoid unnecessary tax.