What is the difference between IRP5 and IT3a?

# What is the Difference Between IRP5 and IT3a? The main difference between **IRP5** and **IT3a** certificates is simple: **IRP5 shows that PAYE tax was deducted** from your salary, while **IT3a shows that no tax was deducted**. Both are employee tax certificates that employers must issue annually, but they serve different purposes based on your tax situation. ## IRP5 Certificate - Tax Was Deducted An **IRP5** is issued when: - PAYE (Pay As You Earn) tax was deducted from your salary - Your annual income exceeded the tax threshold (**R95,750** for individuals under 65) - You worked for part of the year with tax deductions - You received commission or contractor income with tax deducted The IRP5 shows your gross income, tax deductions, UIF contributions, and any applicable tax credits like medical scheme tax credits. ## IT3a Certificate - No Tax Was Deducted An **IT3a** is issued when: - No PAYE tax was deducted from your earnings - Your income was below the tax threshold - You're a contractor who received payments without tax deductions - Pension or annuity payments were made without tax deductions ## Legal Requirements for Employers Employers must issue these certificates by **31 May** each year for the previous tax year (March to February). The certificates must be submitted to SARS either: - **Electronically** via eFiling for employers with more than 50 certificates - **Manual upload** via eFiling for employers with 50 or fewer certificates ## Why This Matters for Your Tax Return Both certificates are essential for completing your **ITR12 tax return**. They provide SARS with proof of your income and any tax already paid, ensuring accurate tax calculations and preventing double taxation. **WeekdayApp** automatically tracks SARS deadline compliance for accounting practices, including the 31 May employee tax certificate submission deadline, starting at R199/user/month. ## Common Source Codes on Both Certificates Both IRP5 and IT3a certificates use standardised **SARS source codes**: - **3601**: Basic salary - **3605**: Overtime payments - **3615**: Commission income - **4102**: PAYE tax deducted (only on IRP5) - **4149**: Medical scheme tax credits Understanding these certificates ensures proper tax compliance and helps avoid penalties for both employees and employers during South Africa's tax season.